AUDITING HISTORY

               The Latin word audire is what an "audit" came from. The meaning of audire is "to hear". Accounting to Flint of 1988, audit is a social phenomenon which serves no purpose or value except if its practical usefulness and its existence are wholly utilitarian. Further explain groups who seek information about the performance of others in which they have an acknowledge. Next, there are some argues in Flint 1998 which is the audit exists. Why? It is because their interested are unable to obtain for themselves the information they require. Hence an audit function can be a means of control because it serves as a skill to monitor the performance and to enforce the accountability.

               Here is the remark in the foreword of The Accountability and Audit of Governments. "Without audit, no control; and if there is no control, where is the seat of power?"

               All of this, the audit function plays a critical role in maintaining the stability of the society. In addition, the review of the historical of auditing enables to understand, analyse and interpret of the evolution due to the changes in expectations of the society. The auditing that exists today was set up in the later part of the nineteenth century, born out the modern day of the business world. During the 18th century, industrial brought in large scale production, steam power, and better means of communication. This is the origin result from the organisations. The shareholders that who have invested their money would be interested in the financial position of the company; the shareholders formed a body known as the board of directors who present the account. Last but not least, their funds have been honestly managed arose as a problem of believing it. That is the need of the person who checks the accounts and reports back to the shareholders in the accuracy of the accounts and the safety of their investment.

               In the nutshell, it is important to have the concept of "audit" definted.