SOLUTION: USF Business Discussion – Studypool
SOLUTION: USF Business Discussion – Studypool.
Running Head: BUSINESS
History of Auditing, Auditing origin and Evolution.
Audit comes from a Latin word audire which means “to listen” or “to hear”. according to
R.K Moutz refers to audit as a concern with verification of accounting data with determining the
accuracy and reliability of accounting records. Audit accompanied the development of
accounting the early historical development of audit is inform of ancient checking activities
found in ancient civilization of China Egypt and Greece prior to 18th century. At around 350 B.C
Greece activities appear to be closest to the present- day audit i.e. the first photo- Greek written
script was of business transaction and palace inventory, and similar records or activities were
also found in ancient exchequer of England.
During 1100-1135 B.C an exchequer was established in England during the reign of
Henry. Audit officers assured revenue and expenditure transactions were properly recorded
accordingly. Prior to 1920’s practice of auditing was emerged during industrialization.
Industrialization led to an expansion in volume for trading transactions which resulted to use of
large amount of money. This resulted to investors being liable to business failure, so the need for
protection at this period grew for profession of auditing to emerge. In the priors to 1960’s the
growth of U.S economy caused s shift of audit development from UK to USA. Evolution of
securities markets and credit-granting developed the capital market at this period. During this
prior 1960’s period the concept of materiality (Queenan 1946). Sampling techniques (Brown
1962) were used for auditing. Social-economic influenced the development of auditing during
this period. Some of the audit approach were;
1. Evidence was gathered both through internal and external sourc…
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