Objectives of Auditing

Objectives of Auditing

Objectives of Auditing

Comments Off on Objectives of Auditing

The purpose or objective of an audit is to convey a judgment on the behalf of financial statements of an organization to make sure that the records are accurate representation of the businesses they claim to represent. It can be done internally by employees of the organization, or externally by an outside auditingfirms.You can go here to find out more regarding auditing and assurance.

Division of objectives of auditing

Objectives are further divided into two main categories which are:

  • Primary or key objectives of auditing
  • Secondary objectives of auditing

Key objectives of auditing

The main objectives due to which auditing is prepared are given as

  • Checking the internal audit system
  • Inspection of account’s books using arithmetical accuracy, verification of accounts, balancing and costing.
  • Confirming the accuracy along withthe foundation of transactions.
  • Examination of capital and revenue type of transactions
  • Authenticating the survival, possessions and legal responsibilities
  • Making sure of all the legislative requirements either they are fulfilled or not
  • Operating results requires fair and true prove as presented by income statement and financial statement which is accessible through balance sheet

Secondary objectives of auditing

Those objectives which are made to achieve primary or key objectives are known as secondary objectives. These objectives are given below

  • Finding and Avoiding Mistakes

Mistakes are those errors that are happened because of negligence, deficient in knowledge, carelessness and lack of interest. Mistakes must be taken seriously and should be thoroughly checked. Mistakes can be of several types whereas few of them include principle errors, omission errors, payment errors and compensating errors.

  • Scam exposure and prevention

Scams are those frauds that are committed intentionally through some absolute interest on the course of top level management. Frauds are carried out by management in order to betray tax, to prove the value of management, headed towards more commission, selling shares in market and it might includesthe maintenance of shares according to the market price. The most important task of an auditor is exposing the fraud or scam. The different kinds of frauds are categorized as cash misuse, cheating in goods, accounts handling or accounts misrepresentation without any fraud.

  • Stock evaluation (over and below)

Generally these frauds are attached to the company’s top level executives. Hence the justification that will be given to the auditor will also remains false and due to such circumstances, an auditor must identify such frauds by using knowledge, skills and facts.

  • Remaining objectives

An additional objective of auditing isto present information to income tax authority, to assure the terms regarding Company Act and to have proper consequences.

Classification of auditing

Auditing is categorized into two main groups that are:

  1. Detailed or continuous audits
  2. Final or periodic audits

There are many experienced firms having collaboration with main banks in UAE, synchronized by all governmental authorities and licensed as a VAT and tax consulting firm. 

Donald Phillips

Related Posts

Half – The Four Letter Word in Divorce

Comments Off on Half – The Four Letter Word in Divorce

Basic Divorce – How to Get One as a matter of course

Comments Off on Basic Divorce – How to Get One as a matter of course

Family Mediation – A Better Option for Couples

Comments Off on Family Mediation – A Better Option for Couples

Suffering from A Work-Related Injury – What To Do

Comments Off on Suffering from A Work-Related Injury – What To Do

How to Get Your Life Back After a Divorce

Comments Off on How to Get Your Life Back After a Divorce

The Many Different Forms of Elder Abuse

Comments Off on The Many Different Forms of Elder Abuse

Best Practices: Making Your Workplace Safe from Work Injuries

Comments Off on Best Practices: Making Your Workplace Safe from Work Injuries

Protecting Those Injured by Medical Professionals

Comments Off on Protecting Those Injured by Medical Professionals

Advantages of hiring best family lawyer

Comments Off on Advantages of hiring best family lawyer

Take Control Of Your Tax Debt With a Tax Attorney In San Antonio

Comments Off on Take Control Of Your Tax Debt With a Tax Attorney In San Antonio

Advantages of availing PRO services in Dubai

Comments Off on Advantages of availing PRO services in Dubai

Contract An Attorney Or Represent Yourself?

Comments Off on Contract An Attorney Or Represent Yourself?

Create Account



Log In Your Account