Page 136 - Office Practice and Accounting 10

According to Ronald A. Irish, “Auditing is a scientific and systematic
examination of books, vouchers and other financial and legal records in
order to verify and report upon the facts regarding the financial condition
disclosed by the balance sheet and the net income revealed by the profit and
loss account.”

According to Montgomery, “An auditing is a systemic examination of the
books, accounts and vouchers of business or her organization in order to
ascertain or verify and to report upon the fact regarding its financial operation
and the result thereof.”

According to Encyclopedia Britannia, “Auditing means an investigation of an
activity by someone connected with it to determine whether it is being carried
on in conformance with its objectives.”

So, auditing is systematic and scientific examination of financial record of business
concern to ensure its reliability, validity and trustworthiness by a qualified and
professional auditor.
Development of auditing in Nepal

Historical development of auditing began in Malla regime with the establishment
of Kumari Chowk Adda. Further it was converted by King Prithivi Narayan Shah as
Bahi Bujhaune Adda in 1828 B.S. But during the regime of Janga Bahadur Rana it was
again named as Kumari Chowk Adda assigned with the responsibility of examining
the account of revenue and expenditure of government. In 2015 B.S, office of auditor
general was established as constitutional body headed by auditor general, for auditing
books of account of government offices. On the recommendation of Auditor General,
forms (AGF) were implemented since the fiscal year 2031/32 B.S. for recording and
reporting financial activities.
The Constitution promulgated in 2047 brought a wide way for modern auditing.
Government Auditing Act, 2048 was implemented which brought great change in
the field of government audit. After the enactment of Company Act, 2063 company
should present a complete audit report to Company Registrar's Office as well as in
annual general meeting of the company.

Government Audit

Government audit is a systematic examination of financial or accounting records by
a specialized inspector, called an auditor, to verify their accuracy and truthfulness. It

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