Question

_____means periodic inspection of financial statements and verifying that the statements are honestly and fairly prepared according to accounting principles​

Answer 1

Answer:

Auditing means periodic inspection of financial statements and verifying that the statements are honestly and fairly prepared according to accounting principles

Answer 2

"Auditing" means periodic inspection of financial statements and verifying that the statements are honestly and fairly prepared according to accounting principles​.

Explanation:

• Auditing is done to assess the reliability and validity of the information.
• It is the examination/inspection of the books of accounts with supporting proof such as vouchers and other documents to detect any fraud or error.

• Auditing keeps a check on the employees and prevents them from committing fraud.

• It works in the interest of people who don't participate in the management of the company such as shareholders or partners.

• Since auditing is done impartially, the auditors can suggest methods and control measures to improve the business efficiently and effectively.