Taking a look to the ancient way of computing accounts, one can understand that books of accounts say cash books ledger, receipts and payment and expenditure book, return inwards, valuation of fixed assets (depreciation accounts) were all kept just in written form. The local officers or servants we4re required rendering the accounts for receipts and payment tot heir master.
During the eighteen and nineteen and twentieth century, local shops, enterprises were expanded since the inception of computer factories involved the procession of finance fair in excess and required by the industry under the old fashioned methods. But to the level of our knowledge, it is relevant to mention that objective able to guide students to understand the procedure and test and postings involved in carrying out an audit of financial statements of the company registered under the companies and allied matters act No 1 of 1990 (as amended) on like the joint stock company that is a form of business organisation, the shareholders are body who delegates the management of under taking for board of directors. Periodically, the board submits to the shareholders the account of the company in order/sequence tht the members may see the financial position and profit and loss of the undertaking in which they are interested. The shareholders as the body may be satisfied that the accounts presented to their board of director, shows an objectives view of the financial position and the result of the company. For this reason auditors were appointed to verify the accounts report to the shareholders.
Audit is the making of inquirer to ascertain that he financial statement on which the auditors are reporting show the true and far view of the financial results for the year under review and true and fair view of the statement of fairs at the year end. Also it is an independent examination and evolution of the correctness and reliability of an organization to their business documents account shows the examination of the goods of final entry and their documentary evidence. It is essential to ensure that there is a reliable system of internal check and control in operation. The auditor examines the books of the organisation taking note on the (facts) things that affect accounts and balance sheet items. He will also compare the assets and liabilities accounts of the year of audit with that of previous years to ascertain the reason for any differences so as to enable him detect any error through accurate interpretation of accounts. The auditor of financial document through verification of their existence and valuation by the auditors should have as well be capable of enabling the auditor to form and opinion on which financial statements as to the extent of their dependability and reliability.