PPT: Objective of Audit | Auditing and Ethics for CA Intermediate PDF Download

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Objectives of Auditing
 
Page 2


Objectives of Auditing
 
Introduction
The word, ‘Audit’ is derived from the Latin term
“audire” which means to hear. Audit is a thorough
review of a department’s records and reports, in order
to verify that assets and liabilities are properly
recorded on the balance sheet and all profits and losses
are properly assessed. To meet the objectives of Audit,
verification of revenue, expenditure, bank deposits,
bank reconciliations, accounts payable and accounts
receivable, cash, loans and advances, disbursement
and regular transactions is very necessary.
Page 3


Objectives of Auditing
 
Introduction
The word, ‘Audit’ is derived from the Latin term
“audire” which means to hear. Audit is a thorough
review of a department’s records and reports, in order
to verify that assets and liabilities are properly
recorded on the balance sheet and all profits and losses
are properly assessed. To meet the objectives of Audit,
verification of revenue, expenditure, bank deposits,
bank reconciliations, accounts payable and accounts
receivable, cash, loans and advances, disbursement
and regular transactions is very necessary.
Auditing refers to a systematic and independent examination
and verification of books, accounts, documents and vouchers
of an organization to ascertain how far the financial statements
present a true and fair view of the concern. It also attempts to
ensure that the books of accounts are properly maintained by
the concern as required by law.
Page 4


Objectives of Auditing
 
Introduction
The word, ‘Audit’ is derived from the Latin term
“audire” which means to hear. Audit is a thorough
review of a department’s records and reports, in order
to verify that assets and liabilities are properly
recorded on the balance sheet and all profits and losses
are properly assessed. To meet the objectives of Audit,
verification of revenue, expenditure, bank deposits,
bank reconciliations, accounts payable and accounts
receivable, cash, loans and advances, disbursement
and regular transactions is very necessary.
Auditing refers to a systematic and independent examination
and verification of books, accounts, documents and vouchers
of an organization to ascertain how far the financial statements
present a true and fair view of the concern. It also attempts to
ensure that the books of accounts are properly maintained by
the concern as required by law.
Definitions of Auditing
• According to the ICAI, “Auditing is defined
as a systematic and independent examination
of data, statements, records, operations and
(financial or otherwise) of an enterprise for a
stated purpose.
• According to R. K. Moutz, "Auditing is
concerned with the verification of accounting
data with determining the accuracy and
reliability of accounting statement and record."
Page 5


Objectives of Auditing
 
Introduction
The word, ‘Audit’ is derived from the Latin term
“audire” which means to hear. Audit is a thorough
review of a department’s records and reports, in order
to verify that assets and liabilities are properly
recorded on the balance sheet and all profits and losses
are properly assessed. To meet the objectives of Audit,
verification of revenue, expenditure, bank deposits,
bank reconciliations, accounts payable and accounts
receivable, cash, loans and advances, disbursement
and regular transactions is very necessary.
Auditing refers to a systematic and independent examination
and verification of books, accounts, documents and vouchers
of an organization to ascertain how far the financial statements
present a true and fair view of the concern. It also attempts to
ensure that the books of accounts are properly maintained by
the concern as required by law.
Definitions of Auditing
• According to the ICAI, “Auditing is defined
as a systematic and independent examination
of data, statements, records, operations and
(financial or otherwise) of an enterprise for a
stated purpose.
• According to R. K. Moutz, "Auditing is
concerned with the verification of accounting
data with determining the accuracy and
reliability of accounting statement and record."
Objects of Auditing
• A. Primary Objectives of Audit
• B. Subsidiary Objectives of Audit