审计的定义是对一个组织的财务账目和登记册进行正式的检查和证实。审计是为了增加股东对企业的信心，因为不了解公司内部程序的股东不知道组织的财务状况(Elder, Beasley, and Arens, 2011)。他们需要从独立可靠的渠道获得有关财务状况的信息。即使是债权人、雇员、债权人、政府和整个社会这样的利益相关者都意识到了这一点，这份报告也为所有人提供了继续下去的信心。
Audit plays a very important role in making a positive image of an organization, irrespective of the size of the organization. The report gives clear picture to the shareholders about the health of the company they are investing. Whereas, a negative audit report not only lowers the image of the company, but they have to incur cost and time to change the overall impression. There are many risk factors which are common to most of the companies, but few are more important for a particular company, depending on the type of business. The risk factors get mitigated with strong audit and also by the improvement plan which is suggested and implemented by the company. The auditors are required to conduct the audit within the code of conduct and standards set by the company. They need to provide assurance by staying within the guidelines.
CPA Australia Ltd is considered as world’s one of the largest bodies for accounting purpose which represents above 150,000 members of the monetary, bookkeeping and professional in over 121 countries.
Auditing and assurance both are essential for successful operation of the business markets and any country’s economy. This increases the confidence of the shareholders and potential shareholders in the company as per the information provided by the audit and assurance team.
Auditing is defined as official inspection and substantiation of financial accounts and registers of an organization. Audit is required to increase the confidence of the shareholders in the business as the shareholders who are not aware of the internal proceedings of the company hence are unaware of the financial condition of the organizationcontinue (Elder, Beasley, and Arens, 2011). They need to get the information from an independent and reliable source regarding the financial condition. Even the stakeholders like lenders, employees, creditors, government and society as a whole are made aware, this report provides the confidence in all to continue.