Objectives of Auditing

Generally, there are two types of objectives of auditing. They are;

1. Primary Objectives
2. Secondary Objectives

1. The Primary Objectives of an auditing are as follow:
a) Examining the system of internal check.
b) Examining the arithmetical accuracy of books of account by verification of posting, casting and balancing.
c) Verifying the reality and validity of the transaction.
d) Confirming the existence and value of assets and liabilities.
e) Verifying whether all the statutory requirements are fulfilled or not.
f) Reporting true and fairness of accounting and financial position.
g) Examining the proper distinction of capital and revenue nature of transaction.

2. The Secondary Objectives (Subsidiary objectives) of an auditing are as follows:
a) Detention and prevention of errors.
b) Detention and prevention of frauds.
c) Other objectives.

• To prepare audit report of company.
• To provide information to income tax authority.
• To satisfy the provision of company acts.