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 fiscal period. The Companies Act, 1956 requires that the tender of a company has to pronounce whether in his opinion the accounts disclose a true and fair view of the read of companys affairs, profit and Loss Account and Balance Sheet of the postulate of affairs of a business, the tender carries out a operate of examination and verification of books of accounts and applicable documents. Such an examination let for enable the auditor to report to his client on the financial ascertain and working results of the organization. While carrying out the examination of the hostile books of accounts, relevant documents and evidences, the auditor may came across certain errors and frauds. despite such a possibility the detecting of errors and frauds is an incidental object. However, laymen bourgeon alway s 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. esp! ial and Prevention of Errors B. Detection and Prevention of Frauds Detection and prevention of Errors: mingled 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 attribute to Sunny. Though at that place is wrong posting settle down the trial balance forget agree. Clerical errors are of...If you requisite to get a unspoilt essay, order it on our website: OrderCustomPaper.com

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