What is an auditing?

What is an audit?
An audit is a systematic and independent examination of accounts, statutory records, books, documents and vouchers of an organization to ascertain how far the financial statements, as well as non-financial disclosures, present a true and fair view of the concern.

What is an auditor?
In accounting, an auditor is someone who is responsible for evaluating the validity and reliability of a company or organization’s financial statements.

There are also:

• An external auditor or Statutory auditors
• Cost auditors or Statutory cost auditors
• Government Auditors
• Secretarial auditors or Statutory secretarial auditors
• Internal auditors
• Consultant auditors

The audit is necessary because of these things:

• Test out the performance of the new technology.
• Evaluate threats, economy, efficacy and quality.
• Identify key areas for improvement in your company.
• Required while taking loans from a bank.
• Show a true and fair view of the financial statement
• The audited financial statement attract shareholder
• Helps to calculate the correct amount of tax to be paid government.

There are many Types of Audits:

• Inventory Audit - the auditor uses several analytical procedures to check the company’s inventory methods and confirm that the financial records and actual physical count of goods match.
• Stock Audit - independent check on the functions of the management, which has some value in the eyes of law and the taxation authority.
• Operational audit - an examination of the operations of the client's business;
• Energy audit - an inspection, survey and analysis of energy flows for energy conservation in a building, process or system to reduce the amount of energy input into the system without negatively affecting the output(s).
• Academic audit - an educational term for the completion of a course of study for which no assessment of the performance of the student is made nor grade awarded;
• Quality audit - performed to verify conformance to standards through a review of the objective evidence;
• Performance audit - refers to an independent examination of a program, function, operation or the management systems and procedures of a governmental or non-profit entity to assess whether the entity is achieving economy, efficiency and effectiveness in the employment of available resources. Safety, security, information systems performance, and environmental concerns are increasingly the subject of audits.
• e.t.c.

Functions of a central bank

In nowadays we all know what is a bank and almost anyone has at least one bank account. Any country has a bank and without one, we could not use international money transactions, what is very useful in business and not only business. There are Commercial banks, Community banks, Community development banks, Land development banks, Credit unions or co-operative banks, Private banks, Offshore banks, Savings bank, Ethical banks, Investment banks, Merchant banks, Universal banks and also there are Central banks. This blog is about central bank.

What is a central bank?

A central bank is also known as reserve bank or monetary authority. It is an institution that manages a state's currency, money supply, and interest rates. Usually, Central banks oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, and usually also prints the national currency, which usually serves as the state's legal tender. Reserve banks also act as a "lender of last resort" to the banking sector during times of financial crisis. Most central banks also have regulatory and supervisory powers to ensure the solvency of member institutions, prevent bank runs, and prevent reckless or fraudulent behaviour by member banks.

Functions of a central bank:

• implementing monetary policies;
• setting the official interest rate and ensuring that this rate takes effect via a variety of policy mechanisms;
• controlling the nation's entire money supply;
• the Government's banker and the bankers' bank ;
• managing the country's foreign exchange and gold reserves and the Government's stock register;
• regulating and supervising the banking industry;