“Auditing is the independent examination of financial information of any entity, whether profit oriented or not, and irrespective of its size or legal form, when such an examination is conducted with a view to expressing an opinion thereon”. Financial statements after being audited are considered trustworthy by investors. However, sometimes it becomes difficult for management to find out the errors. This system is the most satisfying from the auditors point of view.Before uploading and sharing your knowledge on this site, please read the following pages:Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you.

After this managers take corrective steps against these errors or frauds.Auditing helps management in finding out the errors & frauds. It aims at the prevention of frauds. However, auditing is not mandatory for all businesses. After that accordingly, proper plans can be made to achieve targets & goals. Auditing: Meaning, Objectives and Advantages | Accounting Meaning of Auditing:. In case of joint stock companies the director has no chance of taking undue advantages.7. This way it improves the quality of business process & improves its efficiency. The person doing auditing should be qualified for the job to perform it with accuracy.

Auditing simply refers to the evaluation of business books of accounts & vouchers. It is through auditing that helps managers to find out errors & frauds. For centuries, audits were “oral hearing” in which people entrusted with fiscal responsibilities justified with their stewardship. It checks each & every financial transaction thoroughly. The auditor is provided with free hands to audit the books of accounts & is independent of business.Every business or organisation needs to follow some accounting policies. Prevention of errors or frauds. The auditors are competent persons in the fields of accounts and financial laws so can render advice to management.6. Auditing, therefore, is an examination of the books of accounts and vouchers of the business by an independent person who should be qualified for the job, in order to ascertain their accuracy.The auditor is given a free hand to the books, accounts, statements enabling him to thoroughly check them and if satisfied to certify that books have been properly drawn up and represent a true view of the financial position of the business. Auditing aims at finding out the errors from books of accounts of the business.It aims at the prevention of frauds. This can be performed either by internal employees of a business or the person who are external to business.Auditing is conducted continuously at regular intervals by the auditor. It is the duty of the auditor to check the accounting policies of business & express his independent opinion.Auditing helps in easy finding of errors & frauds from the books of accounts.

Objectives of Auditing:. Also the employees of business work properly due to the threat of auditing.Auditing assures that each & every figure represented in the financial statement is correct. purpose of auditing are below.Evaluating the fairness & accuracy of books of accounts is the primary objective of Auditing. Auditing is of 2 types: Voluntary audit & the one required by law. If a business has an effective accounting system, its efficiency can be increased. Steps are taken so that they are not repeated again.

Verification of accounts and statements. Hence, an auditor is a person who hears or listens. Detection of errors or frauds. The basic objective with which auditing is done are: Verification of accounts and statements.

This helps in determining true financial position of the business. Management can take corrective measures against these errors. Auditing simply refers to the evaluation of business books of accounts & vouchers. Auditing accounts facilitates settlement among partners.This is useful in case of big companies with larger business which have scope for keeping the audit staff busy year round or auditors may attend to auditing at intervals fixed or otherwise, and perform an interim audit. Auditing is the systematic examination of the books of accounts and the other documents of the company which is conducted with the main objective of knowing that whether the financial statement prepared and presented by the company shows a true and fair view of the organizations. It detects errors and frauds with suggestions for their prevention.2. This examination is totally unbiased & conducted by an independent person.

The frauds could be detected by a thorough checking of the books and documents such as cash book, vouchers, invoices, wage sheets, etc.1. The objective of an audit of financial statements is to enable the auditor to express an opinion as to where the financial statements are prep… The term “audit” has been derived from the Latin word “audire”, which means “to hear”.

Detection of errors or frauds. It detects and prevents any frauds in the books of accounts. It helps in confirming the true value of assets & liabilities of the organisation. Now audit is one of the assurance services provided by competent and qualified professional accountants. It helps in evaluating every figure of business books of accounts. AUDITING – definition and objectives. The parties feel confident of the audit report because it was done by an independent person or body.5. It is done to make sure whether all the financial transactions are accurately recorded. He gives his special attention to the direction of errors which may be innocently or intentionally committed.In the case of former the auditor discovers the errors by vouching the transactions and by comparing and tallying the balances between and amongst various books.

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