In any business entity, Auditing is the important part which must be performed with high level of professionalism. Auditing of Company accounts is important and mandatory in india from passing of the first Companies Act, 1913. Auditing of a Company is important because it presents true picture of the state of affairs of the entity. Through Auditing the assessing risk and internal risk is being evaluated and there is constant checks and controls in the business. It also ensures maximum utilization of the available sources and along with timely assassination of the liabilities which can incur to the business. It also identifies the liabilities which includes in the contingent nature.