The appearance of an audit (XIII-XV centuries)
For the first time, audit is mentioned in documents on checking the activity of the London City Chambermaster in 1298. In the 14th century, in England by decree of the king, the auditors were appointed to verify the correctness of the payment of taxes by the counties. The archives of the documents of that time have enough evidence of regular audits of reports of municipalities, merchant guilds, guild craft organizations and large private landowners in England.
At the stage of formation, audit was manifested in the context of the audit and control functions assigned to it by the state in the person of the king. The main task of the audit was to guarantee the reliability of calculating and paying taxes to the treasury. The audit results were public, which was achieved by reading audit reports with a large crowd of people in the city squares state treasurers. In this form, audit existed until the XVI century.
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Formation of audit (XV-XIX centuries)
The second stage of audit development is connected with economic changes caused, on the one hand, by the discovery in America in 1496 of America, which resulted in rapid growth of cities, increase in the volume of goods and expansion of trade, and, on the other hand, the practice of registering a double entry in the accounting accounting related to the release of the & quot; Treatise on Accounts and Records & quot; Luke Pacioli (1494).
The rapid development of economic relations, the accumulation of initial capital, the emergence of a new class of bourgeoisie, and by the nineteenth century. - the emergence of joint-stock forms of management has increased the role of audit. If, at the beginning of the second period, the audit objectives and procedures were not changed, then to completion, when the understanding of the importance of internal control came as a single standard accounting system that guarantees the safety of capital and the receipt of dividends by shareholders, there were techniques for detailed analysis of documentation and the study of supporting evidence. It was the auditor who could give an opinion on the accuracy and objectivity of the audited financial statements and the likelihood of the enterprise continuing its operations in the near future.
The appearance of non-public accountants-auditors in the XVIII century. is associated with the name of George Watson (1645-1723), who recommended that some Scottish entrepreneurs check their financial statements. These checks also became the beginning of audit activity in the sense in which it is understood now.
The audit takes its legal origin in Scotland since 1853, when the Edinburgh Institute of Auditors was established. In 1880, the Institute of Chartered Accountants was established in England and Wales, with its 100th anniversary uniting 76,000 members in its ranks.
Since then, the formation of common methods and techniques for conducting audits and training of professional personnel begins.
Legal design of the audit (1862-1914)
The third period of audit development is characterized by the recognition of the need for audit activities in the economic life of countries. Thus, the Law on British Companies in 1862 prescribed a mandatory procedure for auditing accounts of companies once a year. A similar law was adopted in France in 1867.
The Law on Joint Stock Companies in Germany (1870) introduced the obligation to inform shareholders of the results of an audit of the balance sheet and its applications.
Such decisions impose certain requirements on the auditor, his professional and moral qualities. The conditions that society presented to the auditor's personality were honesty, conscientiousness, professionalism, independence and understanding.
Qualification of auditors is confirmed from this time by passing the exam. As a result of the qualification examination, a special license was issued.
Independence - the principle of professional audit - is understood as disobeying any pressure and complete lack of personal interest in the results of inspections.
In the concept of & quot; understanding & quot; in those days, knowledge of psychology was embedded.
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The end of the XIX - the beginning of the XX century. characterized by the emergence of new methods of auditing. If before that auditor checked all the operations of the economic entity, then with the increase in business operations and the sharp enlargement of enterprises, it became almost impossible. So in the arsenal of auditors a method of audit sampling of accounting documents appeared.
With the advent of corporations and consolidated reporting (1904), auditors expanded their observations and inspections from the search for errors on accounts to monitoring cash flows and validating reporting. However, the purpose of the audit is still the detection of intentional errors, which indicates the rudimentary features of its auditing past.
In the third period, the audit began using methods of testing the internal control of the client. However, frequent changes in the rules of accounting and legislation that corrected the economic activity of that time up to 1905 made it very difficult to introduce this method into practice.
At the end of the XIX century. there were signs of forming internal audit in large joint-stock companies. There were elective posts of auditors responsible for the correctness of financial activities of companies.
During the period 1853-1914. there was a second world audit center - the USA. In 1887, the Association of Auditors of America was formed, and since 1896 in the state of New York, the audit activity was regulated by law. The position of the auditor could only be occupied by a certified accountant who passed an examination in the specialty at New York University and received a special license for the right to engage in auditing. By 1908, the Association of Auditors of America had more than 340 members from 25 states.
At the end of the XIX century. the semantic link of the concept of audit with the control function and at the state level was completed. Evidence is the transformation of the Main Accounts Chamber of Prussia, founded in 1714, into a state control body - the Court of Auditors of the German Empire (1871), which existed after the end of World War II with some changes - both the Court of Special Auditors and the Court of Auditors of the Joint Economic Zone .
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