The word “audit "is derived from the Latin" Audio”, which means - “he hears”, “listener “. This is the way to the spiritual education called great achievers, who trusted the teachers trust check other students, and he listened to them, determining how they learned the material covered, as well as checking the quality of their assignments. With the abandonment of the audit report goes back to ancient civilizations of the Middle East. With the establishment of public authorities engaged in economic activity taking into account the income and expenditure, and collecting taxes. Accordingly, there was a need of control, whose goal was to reduce errors and prevent fraud by incompetent or dishonest officials (Smirnov, 2000).
Even in the ancient world, as soon as the function of ownership and control was divided between such major economic entities of the period, as a slave state, and the estate was first recognized need in the audit. In particular, the ancient Roman sources, which have been preserved to our time, show that accounting is usually conducted simultaneously and independently by two dedicated individuals (Jeffers, 2007m 33-34). This organization of the accounting process is primarily due to a desire to prevent looting the public treasury or property of an individual slave-owner. However, it served to confirm the accuracy of reporting. In addition, to verify the correctness of the accounts used inventory. However, these techniques do not rely entirely control (Eura-Aud, 98,1997).
Traditional in those days was the so-called practice of “listening “Accountants. In an effort to obtain greater profits to the extent possible, property owners who hire managers, supervisors assigned to duties which included listening to reporting entities. So were monitored on a private level. At the state also set up special bodies (account management), who controlled the collection of taxes and public spending. The story began in the audit of the fourteenth century, when the books were featured as evidence in court. From the fourteenth century in many countries introduced legal control of accounts books and began to use the term "auditor" to describe people who are engaged in checking accounts (Rogulenko, 2006).
All this increased the role and importance of auditing institution and recognized the need for internal control. But he was given the role of authority, not participated in the verification and error detection, and the creation of a single standard system of accounting. The main emphasis was directed to a system of monitoring cash flow. Since both the accounting system and organizational structure has undergone significant changes in the direction of amplification, then the auditors would have to apply the methods of sampling. Testing has been used only in the last decades of the 19th century (Schartmann, 2007, p.45). In the fast-growing production of the auditor is no longer able to check every transaction a huge corporation. Up until 1905, limiting factor in the amount of testing were the changes and innovations in the accounting system and internal controls. The objectives of the audit ...