Before starting on the history of auditing, we must have a clear and concise idea on what Auditing actually is.
What is Auditing?
Financial auditing is the process of examining an organization's (or individual's) financial records to determine if they are accurate and in accordance with any applicable rules (including accepted accounting standards), regulations, and laws.
The word “audit” comes from the Latin word audire, meaning “to hear” “to listen”. According to Flint (1988),audit is a social phenomenon which serves no purpose or value except of its practical usefulness and its existence is whollyutilitarian.
The individual who does the work of auditing is called auditor.
External auditors come in from outside the organization to examine accounting and financial records and provide an independent opinion on these records. Law requires that all public companies have their financial statements externally audited.
Internal auditors work for the organization as internal employees to examine records and help improve internal processes such as operations, internal controls, risk management, and governance.
TERM OF APPOINTMENT OF AUDITOR
OPC and Small Company – Same Auditor can be re-appointed every five years.
Listed Companies and Companies other than OPC and Small Company –
i. Individual – One term of 5 consecutive years. Can be re-appointed after cooling off period of 5 years
ii. Firm of Auditors – Two terms of 5 consecutive years. Can be re-appointed after cooling off period of 5 years
PROCEDURE FOR APPOINTMENT OF AUDITOR
• In case of companies which have constituted audit committee, audit committee to recommend appointment of auditor to board, in other cases, Board to consider on their own.
• If Board is satisfied with recommendation of audit committee, it shall consider and recommend the same to members in general meeting.
• If Board is not satisfied, it will send back to audit committee for reconsideration along with Board’s reasons.
• If audit committee does not reconsider, then Board will make its own recommendation to the Members and record the reason for rejection of recommendation of audit committee in Board’s report.
• Audit Committee/Board to consider following factors before appointment:
- Qualifications and experience of the person
- Size and requirements of the company
- Completed and pending proceedings against the auditor before the ICAI or the NFRA or Tribunal or any Court of law
• On recommendation of Board, members to appoint an individual or firm as auditor for five years subject to ratification by members in every AGM.
• Company to intimate auditor regarding his appointment and also to ROC within 15 days of meeting.
DOCUMENTS TO BE OBTAINED FROM AUDITOR BEFORE APPOINTMENT
• Consent letter to act as auditor
• Certificate confirming following particulars:
- He or it is eligible for appointment and is not disqualified for appointment under the Act, the Chartered Accountants Act, 1949 and Rules and Regulations made therein.
- The proposed appointment is within the term allowed under the Act.
- The proposed appointment is within the limit laid down in the Act
ROTATION OF AUDITORS
• Members can provide for following by passing a resolution:
(a) In the audit firm appointed by it, the auditing partner and his team shall be rotated at such intervals as may be resolved by members; or
(b) The audit shall be conducted by more than one auditor.
• Rotation on expiry of term: Same procedure as appointment.
• For the purpose of rotation, the period for which the auditor is holding office prior to the commencement of this act will also be counted in calculating the period of 5 years or 10 years as the case may be.
• Where a company has appointed two or more persons as joint auditors, the company shall follow the rotation of auditors in such a manner that all of the joint auditors do not complete their term in the same year.
LIMIT ON NUMBER OF COMPANIES FOR APPOINTMENT OF AUDITOR
• An individual or partner of an audit firm cannot be appointed as an auditor in more than twenty companies.
REAPPOINTMENT OF RETIRING AUDITOR
• Subject to the maximum tenure of appointment, a retiring auditor can be re-appointed if—
- He is not disqualified for re-appointment;
- He has not given the company a notice in writing of his unwillingness to be reappointed
- A special resolution has not been passed at that meeting appointing some other auditor or providing expressly that he shall not be re-appointed.
• Where at any annual general meeting, no auditor is appointed or re-appointed, the existing auditor shall continue to be the auditor of the company.
REMOVAL OF AUDITOR BEFORE TERM
• Special Resolution to be passed by company for removal of auditor.
• Application to be filed with Central Government in form no. 10.1 within 30 days of passing special resolution.
• The application shall be accompanied by such fees as specified.
• The auditor concerned shall be given a reasonable opportunity of being heard.
RESIGNATION OF AUDITOR
• Auditor to file statement in form 10.2 within 30 days of resignation giving reasons and other facts for resignation.
• Statement to be filed with ROC and Company.
• If the auditor does not comply with above provisions, he or it shall be punishable with fine which shall not be less than MRP. 50,000/- but which may extend to MRP. 5,00,000/-.
APPOINTMENT OF AUDITOR OTHER THAN RETIRING AUDITOR
• Special notice required for appointment of auditor other than retiring auditor except in case where term has got over.
• On receipt of special notice, company to send notice to retiring auditor.
• Retiring auditor can make representation which needs to be circulated to members.
ELIGIBILITY, QUALIFICATIONS & DISQUALIFICATIONS OF AUDITOR
• Only a Chartered Accountant or a firm where majority of partners practising in India are Chartered Accountants can be appointed as auditor.
• Where a firm including a limited liability partnership is appointed as an auditor of a company, only the partners who are chartered accountants shall be authorised to act and sign on behalf of the firm.
• The following persons shall not be eligible for appointment as an auditor of a company, namely:
• A body corporate, except LLP.
• An officer or employee of the company;
• Any partner/employee of officer or employee of company
• A person who himself or his partner is holding security or interest in a company, or any company which is its holding, subsidiary, associate or fellow subsidiary.
• A person whose relative is holding security or interest not exceeding MRP. One Lakh face value in companies as mentioned above.
• A person who himself or his relative or partner is indebted, or has given guarantee for indebtedness of any third party to the company, its subsidiary, holding, fellow subsidiary or associate company in excess of tk one lakh.
• A person or a firm who, whether directly or indirectly, has “business relationship” with the company, or its subsidiary, or its holding or associate company or fellow subsidiary. “Business relationship” shall construe any transaction entered into for a commercial purpose except those which are in the nature of professional services as permitted to be rendered by an auditor or audit firm under the Act and the Chartered Accountants Act and the rules and the regulations made under such Act.
• A person whose relative is a director or is in the employment of the company as a director or key managerial personnel
• A person who is in full time employment elsewhere
• Person who is auditor of more than 20 companies.
• A person who has been convicted by a court of an offence involving fraud and a period of ten years has not elapsed from the date of such conviction.
• Any person whose subsidiary or associate company or any other form of entity, is engaged as on the date of appointment in consulting and specialised services as provided in section 144.
PROHIBITED SERVICES
Auditor not to render following services to company, holding company or subsidiary company, directly or indirectly:
(a) accounting and book keeping services;
(b) internal audit;
(c) design and implementation of any financial information system;
(d) actuarial services;
(e) investment advisory services;
(f) investment banking services;
(g) rendering of outsourced financial services;
(h) management services; and
(i) any other kind of services as may be prescribed
There are two main objectives of auditing. The primary objective and the secondary or incidental objective.
a. Primary objective – as per Section 227 of the Companies Act 1956, the primary duty (objective) of the auditor is to report to the owners whether the balance sheet gives a true and fair view of the Company’s state of affairs and the profit and loss A/c gives a correct figure of profit of loss for the financial year.
b. Secondary objective – it is also called the incidental objective as it is incidental to the satisfaction of the main objective. The incidental objective of auditing are:
i. Detection and prevention of Frauds, and
ii. Detection and prevention of Errors.
Detection of material frauds and errors as an incidental objective of independent financial auditing flows from the main objective of determining whether or not the financial statements give a true and fair view. As the Statement on auditing Practices issued by the Institute of Chartered Accountants of India states, an auditor should bear in mind the possibility of the existence of frauds or errors in the accounts under audit since they may cause the financial position to be mis-stated.
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Companies Act
Companies Acts may be a generic name either for legislation bearing that short title or for all legislation which relates to company law.
Companies Act, 2013 has introduced a number of changes relating to audit and auditors. Most of these are welcome measures aimed at better corporate governance and shareholder democracy. The rules relating to this topic have also been published for public comments. Initial hitches at the time of transition from the existing Act to the new Act are expected which hopefully will be settled with passage of time and clarifications brought out by the Ministry. The draft Rules are open to public comments till 8th of October 2013. Readers are encouraged to understand the provisions and post their comments to the Ministry.
Section 181 of Companies Act 1913:
SECTION 181: Provision for legal assistance to official liquidator:
The official liquidator may, with the sanction of the Court, appoint an advocate attorney or pleader entitled to appear before the Court to assist him in the performance of his duties :
Provided that, where the official liquidator is an attorney, he shall not appoint his partner, unless the latter consents to act without remuneration.
Section 181 of the Companies Act,1913 required that every company should cause to be kept proper books of account with respect to:
(a) all sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place;
(b) all sales and purchases of the goods by the company;
(c) the assets and liabilities of the company
(d) in case of a company pertaining to any class of companies engaged in production, marketing, transportation , processing, manufacturing, milling, extracting and mining activities, such particulars relating to utilization of material, labor and other items of overhead cost.
Origin of Auditing
Contribution of Luca De Pacioli
Fra Luca Bartolomeo de Pacioli (sometimes Paccioli or Paciolo; c. 1447–1517) was an Italian mathematician, Franciscan friar, collaborator with Leonardo da Vinci, and a seminal contributor to the field now known as accounting. He is referred to as “The Father of Accounting and Bookkeeping” in Europe and he was the first person to publish a work on the double-entry system of book-keeping in that continent. In his act „Summa“ the mathematician has written a summary of the mathematical methods of his times. In the famous Tractatus XI with the title „Particularis de computis et scripturis“ Pacioli describes the rules of bookkeeping as they were applied at that time by the northern Italian trading houses.
According to Pacioli the accounting was „in balance“, if the sum of the principal as well as the believer side separately added would give the same (positive) amount. Were the amounts of the believer side considered as negative values, then the accounting was “in balance”, if the sum of all principal and believer values resulted in a total of zero. In Pacioli’s work already is apparent, how profits and losses emerge from not furthermore explainable changes in value.
Barter System
Bartering is the process of trading services or goods between two parties without using money in the transaction. When people barter, everyone benefits because they receive items or services they need or want. Bartering also has an advantage because even people without money can get something they need. Bartering might involve trading a service for an item. For example, you could agree to perform yard work for someone in exchange for a bushel of apples from a tree in their yard. When people choose to barter to meet a need, they can save their money for other needs.
Mesopotamia tribes were likely the starting point of the bartering system back in 6000 BC. Phoenicians saw the process, and they adopted it in their society. These ancient people utilized the bartering system to get the food, weapons, and spices they needed. Because of salt’s great value, Roman soldiers bartered their services for the empire in exchange for salt. In Colonial America, the colonists used bartering to get the goods and services they needed. Even after the invention of money, people continued to barter.
The simplicity of bartering is one of the main advantages of this system. Issues with international trade, foreign exchange, and unbalanced economic power are virtually nonexistent with a bartering system. However, some disadvantages also exist. For a bartering transaction to occur, both parties’ wants or needs must coincide to lead them to make a deal. Without a standard measure of value of goods and services, parties in the bartering transaction will need to spend time agreeing on the terms of the deal. It’s common for both parties to place a higher value on their own goods or services and a lower value on the other party’s items. Trust is also a component of bartering, because the representation of the goods or services offered must be accurate. If something is misrepresented in a transaction, the other party will have little recourse when a problem ensues. When bartering, people may need to store their accumulated possessions to preserve their purchasing power. Depending on the types of items, this might be difficult and inconvenient.
Because bartering does not involve the exchange of money for goods and services, it might seem like an ideal way to avoid paying taxes on transactions. However, the U.S. Internal Revenue Service informs taxpayers that the fair market value of goods or services received via bartering is considered taxable income. Parties who engage in bartering transactions must report this value as income on tax returns. The IRS requires reporting of bartering for the year it occurs. Failure to report bartering activity could lead to tax penalties.
Before 1840’s
The activities of the auditors can be summarized in this period as follows:
(1) There was no structured business and as such no formal internal control was established
(2) Lee and Azham (2008) observed that the auditing at the time was restricted to performing detailed verification of every transaction. Thus, the concept of testing or sampling was not part of the auditing procedure.
(3) Fitzpatrick (1939) opined that the audit objective in the early period was primarily designed to verify the honesty of persons charged with fiscal responsibilities.
(4) The sole duty of auditors was to detect fraud. He was seen as a bloodhound and not a watchdog.
Important years in history of auditing:
1857:
The first ever Companies Act in India legislated.
1866:
Law relating to maintenance of accounts and audit thereof introduced. Formalqualification as auditor now required.
1913:
New Companies Act enacted. Books of accounts to be maintained specified. Formal qualification to act as auditor named. A Certificate from the local government to be held in order to act as auditor. An unrestricted Certificate entitled a person to act as auditorthroughout British India. A restricted Certificate entitled him to act as auditor only within the province concerned and in the languages specified in the certificate.
1918:
Government Diploma in Accounting GDA launched in BomBay. On completion of article ship of three years under an approved accountant and passing the qualifying examination the candidate would become eligible for the grant of an unrestricted Certificate.
1920:
The issue of restricted Certificates discontinued.
1927:
society of Auditors founded in madras.
1930:
Registerof Accountants to be maintained by the government of India to exercise control over the members in practice. Those whose names found entry here were called registered Accountants.
1930:
The governor general in Council replaced the local government as the statutory authority to grant certificates to persons entitling them to act as auditors. Auditors allowed to practice throughout India.
1932:
First Accountancy Board formed. The Board was to advise the governor general in Council on matters relating to accountancy and to assist him in maintaining standards of qualification and conduct required of auditors.
1933:
First examination held by the Indian Accountancy Board. GDAs exempted from taking the test.
1935:
The first Final examination was held. GDAs exempted from taking the test.
1943:
Government Diploma in Accounting (GDA) abolished.
Evolution of Auditing
1.1850 – 1882: The Office of the Comptroller and Auditor General has its beginnings in 1858 – the year the British Crown took over the reins of governing British India from the East India Company. The first Auditor General (Sir Edward Drummond) was appointed in 1860 and had both accounting and auditing functions. Departments of Accounts and Audit were created (reorganized) in 1862. In Indo-Pak subcontinent there were a few British firms of accountants, but they were so busy that their services were not available to the general public. The public companies used to appoint a European Auditor for safeguarding the interests of the Indian shareholders.
2. 1882- 1913: In this phase the Companies Act of 1882 was passed. Regulations 83-94 of Table ‘A’ was in the first Schedule to the said Act provided for the audit of accounts of the companies adopting that Table and for the appointment, remuneration and duties of the auditors. Some companies in fact used to employ lawyers as their auditors.
3. 1913-1932: The Companies Act, 1913, was passed to be effective as from 1914. No person could act as the Auditor of a public limited company unless he held an auditor’s certificate granted by Government. The Provincial Governments were empowered to grant Auditors’ Certificate but, at the same time the Central government also reserved the right to recognize members of certain professional bodies as qualified to function in the capacity of company auditors without obtaining Auditors’ Certificate from the Government. Consequently the members of English, Scottish and Irish Institutes of Chartered Accountants and of the English Society of Incorporated Accountants and Auditors were recognized as qualified auditors.
Thus the broad outlines the maintenance of books of accounts was made mandatory under the Company law.
For some years after 1913 the Provincial Government used to grant Auditors’ Certificate to persons who possessed some knowledge of accountancy. At that time there was no provision of any kind of training and examination of the accountancy .In 1918, Provincial Government of Bombay instituted the Government Diploma in Accountancy (Called GDA) and made regulations for the examination and training of those who wanted to obtain that Diploma and certificate to practice.
The action taken by the said government received the approval of other provincial and central Governments. The result was that GDA Diploma becomes the requisite qualification for the grant of Auditors’ Certificate throughout the then British India. An Accountancy Board was set up by the Government and was attached to the Sydenham College of Commerce and Economics, Bombay. This functioned till 1932
4. 1932-1947: Till 1932 there was no centralized control over the profession of accountancy, but the necessity for such control was increasingly being felt because of changing requirements of the time and growing needs of the economy. Consequently the Government framed Rules under Section 144, of the Companies Act ,1913, called “Auditors Certificate Rules’ 1932”. The objectives of these rules were broadly as follows:
• Registering apprenticeships;
• Conducting examinations;
• Controlling and regulating the profession of auditing.
The Accountancy Profession was then being supervised and controlled by the Ministry of Commerce of the Central Government. With a view to helping the Government, Indian Accountancy Board was established. The board was only an advisory body . The Auditors Certificate Rules 1932, required the passing of two examinations – Registered Accountants first and final. It further laid down the tenure of prescribed training which was required to be completed during the period of apprenticeship.
5. 1947- Dec. 15, 1971: Pakistan expressed as an independent state on August 15, 1947 and adapted the Auditors’ Certificate Rules, 1932. Amendments were made in 1950 and the affairs of the accounting profession were then administered under the Auditors’ Certificate Rules, 1950. A person who passed the Registered Accountants first and final examination and who satisfied the Ministry of Commerce, Central Government of Pakistan that he had completed the prescribed practical training could have his name placed on the registered maintained by the said Ministry and was entitled to use the designation ‘Registered Accountant’ (RA).
In 1952, the Registered Accountants formed a private body known as “ Pakistan Institute of Accountants” with the objects of looking after their own interest and taking up with Ministry of Commerce, Government of Pakistan, matters affecting the accountancy profession. The Government realized that the profession was rapidly growing in its stature and importance and in June 1959, the Department of Accountancy was established in the Ministry of Commerce with a Controller of Accountancy to deal with the professional instead of a Section Officer.
The Chartered Accountants Ordinance, 1961 received the assent of the President of Pakistan on March 3, 1961, and was published in Part I of the Extraordinary Gazette of Pakistan on March 10 1961. The Institute of Chartered Accountants of Pakistan came into being on July 1, 1961. A draft of the Chartered Accountants Bye-Laws was also prepared and published for inviting public comments. The amended version called Chartered Accountants Bye-Laws –1961, was published on the part I of the Extraordinary Gazette of Pakistan on July 1, 1961 and was enforced as on that date. As of that date the Department of Accountancy and the Pakistan institute of Accountants having served a very useful purpose were liquidated.
6. December 16, 1971 Onward: Through the war of liberation, the then East Pakistan emerged as an Independent country- Bangladesh on 16 December, 1971. A Council was constructed by the Government of Bangladesh under notification No, SEC-XII/9M-132/72/ 318 (50) dated the 27th March 1972, issued by the ministry of commerce after the 16th day of December 1971. The profession of Chartered Accountants is governed by the following:
• The Bangladesh Chartered Accountants Order, 1973
• The Bangladesh Chartered Accountants Bye-Laws-1973
• Forms of Application, Certificates, Agreements etc.
• Directives of the council and the decisions of the institute.
The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body in Bangladesh, established under the Bangladesh Chartered Accountants Order, 1973 (President's Order No. 2 of 1973). for the purpose of regulating the profession of accountants and for matters connected therewith.
Administrative Ministry :
The Ministry of Commerce, Government of the People's Republic of Bangladesh is the Administrative Ministry of The Institute of Chartered Accountants of Bangladesh (ICAB).
Vision :
ICAB members hold a widely respected professional accounting qualification which supports enterprise, corporate governance and sustainable growth in the business environment.
Mission :
• To promote and regulate high quality financial reporting and auditing in Bangladesh
• To develop and maintain the competence of professional accountants and
• To enhance the reputation of the accounting profession in all sectors of the economy
Vision:
• Integrity To uphold the highest professional integrity and ethical standards
• Expertise To conduct professional responsibilities with a high level of knowledge, competency and skill.
• Transparency To conduct activities in a clear and transparent way.
• Accountability ICAB members to be responsible for their actions.
Strategic Goals :
• Increase number of members, students and financial strength
• Align with members' careers
• Enhance ICAB's image within the country and internationally
• Further enhance the reputation for professionalism and high standards of integrity.
• Ensure compliance with requirements of IFAC (International Federation of Accountants) membership.
Aims & Objectives:
To accomplish its mission, ICAB has been doing:
• Regulate the Accountancy Profession and matters connected therewith
• Administer its members and students
• Ensure professional ethics and code of conduct
• Provide specialized and professional training in Accounting, Auditing, Taxation, Corporate Laws, Management Consultancy, Information Technology and related subjects.
• Impart Continuing Professional Development (CPD) to members.
• Foster acceptance and observance of International Accounting Standards/ International Financial Reporting Standards (IAS/IFRS) and International tenders on Auditing /International, Auditing Practices Standards, (ISA/IAPS) and adopt the same in Bangladesh as Bangladesh Accounting Standards/ Bangladesh Financial Reporting Standards (BAS/BFRS) and Bangladesh Standards on Auditing/ Bangladesh Auditing Practices Standards (BSA/BAPS) respectively.
• Foster acceptance and observance of International Accounting Standards/ International Financial Reporting Standards (IAS/IFRS) and International Standards on Auditing /International Auditing Practices Standards (ISA/IAPS) and adopt the same in Bangladesh as Bangladesh Accounting Standards/ Bangladesh Financial Reporting Standards (BAS/BFRS) and Bangladesh Standards on Auditing/ Bangladesh Auditing Practices Standards (BSA/BAPS) respectively
• Foster acceptance and observance of International Accounting Standards/ International Financial Reporting Standards (IAS/IFRS) and International Standards on Auditing /International Auditing Practices Standards (ISA/IAPS) and adopt the same in Bangladesh as Bangladesh Accounting Standards/ Bangladesh Financial Reporting Standards (BAS/BFRS) and Bangladesh Standards on Auditing/ Bangladesh Auditing Practices Standards (BSA/BAPS) respectively
• Keep abreast of the latest developments in Accounting techniques, Audit methodology, Information technology, Management consultancy and related fields and
• Liaise with international and regional organizations to strengthen mutual cooperation.
Governance:
The Council-ICAB is the supreme authority responsible for the administration and management of the Institute in accordance with P.O. No. 2 of 1973 and ICAB Bye-Laws 2004. The Council is composed of twenty members elected by the members of the Institute from its two regional constituencies in Bangladesh for every three years. The President and the Vice-Presidents of the Institute are elected by the Council every calendar year to manage the affairs of the Institute. The President who is the Chief Executive of the Council heads the Council. The Council is assisted by various Standing and Other (Non-Standing) Committees and Boards. For the purpose of assisting the Council and the committees/Boards in matters concerning their functions, the Council is empowered to constitute Regional Committees, the members of which are elected by the general members of the respective constituencies. Currently there are two Regional Committees in Dhaka, Chittagong and Overseas Chapters: UK Chapter Management Committee, North American Chapter and Asia-Pacific Chapter. The day to day activities of the Institute is delegated to the Secretariat, headed by the Secretary as Administrative Head.
Membership:
The total number of Members of the Institute is 1583 as of 01 July 2016 of whom 1419 are residing in Bangladesh and 164 in abroad. There are 973 Fellows and 610 Associates enrolled with the Institute. Out of 1583 members, 366 are practicing as public accountants and the rest 1217 are either serving in various key positions in public and private organizations, both at home and abroad, and self employed running their own business. However, up to December 2016, total number of members is 1610 which includes 102 female members.
ICMAB
The Institute of Cost and Management Accountants of Bangladesh (ICMAB) is the national body of the professional Cost and Management Accountants of Bangladesh. Established with the prime objective of promoting and regulating the Cost and Management Accounting profession in the country, the Institute offers education and training to the students interested to pursue career in this field and provides highly recognized CMA degree on fulfilment of requisite qualification. The Institute undertakes research in relevant fields and is the sole authority to issue practicing license to its members.
The Institute has a long heritage of rendering professional services to the nation. The journey of the glorious profession of Cost and Management Accounting began in the pre-independent Bangladesh with the founding of a branch of The Pakistan Institute of Industrial Accountants (PIIA) in 1958.
ICMAB is a statutory organization constituted by the Government under the Cost and Management Accountants Ordinance 1977 (Ordinance No Llll of 1977) and regulated under the Cost and Management Accountants Regulations 1980 (as amended up-to date). It is the member of a number of regional and global accounting bodies.
Financial Reporting Act 2015
In order to monitor the ICAB and ICMAB, the Financial Reporting Council (FRC) of 12 members, a body formed under the act, would be formed to ensure accountability and performance among the chartered accountants and management accountants in Bangladesh. Moreover, the council will be a statutory body with expert members from various government bodies, institutions and professional groups.
All auditors and audit firms must register with the Financial Reporting Council. Without registration, no auditor and audit firm will be able to provide auditing services to any entity related with the public interest. For registration, the auditor or audit firm needs to apply to the FRC. The FRC will review the application and will provide the registration pursuant to the rules and guidelines. If any auditor or any audit firm violates any provision of the act or any of its rules and guidelines, the Financial Reporting Council may cancel or suspend the registration and may fine as well.
Institutes for Audit Profession
ACCA - Association of Chartered Certified Accountants
ACCA is a globally recognised professional accountancy qualification. It is one of the fastest growing international accountancy organisations with 170,000 members and 436,000 students in 180 countries. ACCA qualification has been designed to enhance your skills and knowledge and strengthen your position in the competitive market with good reputation. ACCA has a strong focus on professional ethics, values and governance.
CIMA - Chartered Institute of Management Accountants
The Chartered Institute of Management Accountants (CIMA) is the world’s largest and leading professional body of management accountants. Their mission is to help people and businesses to succeed in both the public and private sectors.
CIMA has more than 227,000 members and students in 179 countries. They work at the heart of business in industry, commerce and not for profit organisations. CIMA has strong relationships with employers, and sponsor leading research. Through the partnership with the American Institute of Certified Public Accountants (AICPA), CIMA supports and gives voice to 150,000 Chartered Global Management Accountants (CGMAs) across the globe.
So, this is all about the history of Auditing. Auditing has emerged from day one to till today efficiently. As a business student it is very important to have some idea about auditing. As auditing is a must for organizational transparency.
