State the factors responsible for the growth of auditing.
Answers
2. Dynamic business
3. Legislation and regulatory requirements
4. Competition
5. Evolution of IT
Answer:
Factors responsible for growth of auditing are as following:
1) Increase in size of business
As there is growth in business size, level of operations all increases thus growth of auditing is required.
2) Dynamic business
Due to changes in technology a number of companies have become so dynamic such that their controls are updated on a continuous basis and this calls for constant feed back on those controls that necessitate updating.
3) Legislation and regulatory requirements
As the concept of corporate governance gains roots in business management, the growth for auditing is increasing.
4) Competition in the market
If a company is strong and is effectively controlling the operation only then it is able to survive in the competitive environment.
5) Advancement of technology
Industries have computerised the tasks once done by human being so these computerised systems need to be continuously reviewed and controlled.