I think the bigger problem is where the original poster is coming from. The biggest question is
In the first step while pre-multiplying by $A^{-1}$, are you sure that you know such a matrix $A^{-1}$ exists such that $A^{-1}A = I$? The answer is obviously true, but have you gone through enough Linear Algebra?
There are two possibilities, you know enough linear algebra to show that such a matrix $A^{-1}$ exists and is unique, then the proof is sound, there is no problem with it.
But if you're unsure with it, then I'll answer your question. The first step is to show that the matrix $A$ represents an invertible linear map. Partition $B = [C_1: C_2: \ldots : C_n]$ where $C_i$'s are the columns of the matrix $B$. Since $AC_i = e_i$ where $e_i$ is the column matrix of order $n \times 1$ with $i$th entry as $1$ and others $0$, we can conclude that $A$ spans entire $\mathbb C^n$. Applying the rank nullity theorem, we can conclude that $A$ is a bijective linear map or an isomorphism.
Therefore, there exists a unique matrix $B$ such that $AB = I$. Since $A$ is an isomorphism, the left and right inverse of $A$ will coincide.
Therefore $BA = I$ as well, and now the proof is sound. Multiplying by $A^{-1}$ has no problems now.
If you aren't convinced yet, then I think its better to specify what stuff you're familiar with. If you don't know the Rank-Nullity Theorem, then there other possible proofs which can simplify all of this into linear combinations. Giving your own background while doing basics of any subject is very important while asking the question.
It is correct since the existence of a left inverse of a square matrix follows from the existence of a right inverse.
– Hasan Saad Jun 27 '15 at 23:43As for OP, the proof here is that if $AB=I$ then $BA=I$ and this proof is completely valid. However, this "proof" misses the gist of the subject which is all about proving the existence of $A^{-1}$ first. If it were proved before, then this proof is perfectly valid.
– Hasan Saad Jun 28 '15 at 00:47