Audit Objectives

Primary Objectives:

The main purpose of audit is to judge the reliableness of the pecuniary arousements and the supporting accounting records for a particular financial period. The Companies Act, 1956 requires that the tender of a company has to pronounce whether in his tone the accounts disclose a true and fair view of the state of companys affairs, profit and Loss Account and Balance Sheet of the state of affairs of a business, the auditor carries out a wreak of examination and verification of books of accounts and relevant documents. Such an examination allow for enable the auditor to report to his client on the financial condition and working results of the organization. While carrying out the examination of the unlike books of accounts, relevant documents and evidences, the auditor may came across certain errors and frauds. contempt such a possibility the detecting of errors and frauds is an incidental object. However, laymen develop always associated the detection of errors and frauds as the main function of an auditor which is not true. At the same time audit to a fault discloses how far the accounting system adopted in the organic law is adequate and appropriate in recording the various proceedings as well as the weakness of these systems.





Secondary Objectives:

As stated above, an auditor has to examine the books of accounts and the relevant documents in regulate to report on the financial condition of the business. In the operation of such an investigation of accounts certain errors and frauds may be detected. These are discussed under the following two heads:

A. espial and Prevention of Errors
B. Detection and Prevention of Frauds

Detection and prevention of Errors: Various types of errors are mentioned under:


1. Clerical Errors: Such an error arises on account of improper posting. For example, an amount received from Thomas is credited to Sunny. Though at that place is wrong posting still the trial balance forget agree. Clerical errors are of...If you want to get a unspoilt essay, order it on our website: Orderessay



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