Auditing in Excel is the process of examining the accuracy and completeness of financial statements. It is an important part of ensuring the integrity of financial reporting. There are two types of auditing in Excel: internal and external. Internal auditing is conducted by employees of the company, while external auditing is conducted by independent third-party professionals.

The purpose of auditing in Excel is to provide assurance that the financial statements are free from material misstatement, whether due to error or fraud. Auditors perform their work through a combination of inquiry, observation, testing, and analytical procedures. The goal is to obtain sufficient evidence to provide a reasonable basis for their opinion.

There are many different types of audit tests that can be performed, but some common ones include:

• Inquiry: Asking management and employees questions about their knowledge of the company's accounting records and procedures.
• Observation: Physically observing processes and procedures being performed.
• Testing: Analyzing transactions and account balances to see if they are properly recorded and comply with accounting standards.

Auditors must exercise professional skepticism when performing their work. This means they should not take management's word at face value, but should instead critically assess the information they are given. They should also maintain independence from those they are auditing.

Auditors must be licensed by a regulatory body such as the Public Company Accounting Oversight Board (PCAOB) in order to perform audits of public companies. They must also adhere to professional standards, which are set by organizations such as the American Institute of Certified Public Accountants (AICPA).