An inspection of the financial documents and accounts of an organization by an independent body is known as Audit. It is done by a trained and certified officer, who is an expert, majorly, in finance. Various frauds and mishandling of the finances can be detected during these audits. In technical terms, it is a planned and documented procedure of investigating the financial documents of any particular company, so as to determine their compliance with the standard set financial rules. This procedure, further contributes in the effective implementation of risk management techniques and governance methods. Auditing is an essential part of accounting and also of the entire finance management of an entity.