Auditing definition and objectives

Auditing is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicate the results to interested users

The audit is one of the most dynamic areas of the accounting sciences

Evaluating the fairness & accuracy of books of accounts is the primary objective of Auditing

It checks each & every financial transaction thoroughly

It detects and prevents any frauds in the books of accounts

The auditor is provided with free hands to audit the books of accounts & is independent of business

The elementary target of auditing is to facilitate to harmonize that the books of accounts displays a true and fair view or not

Thus, the auditing is performed to build-up effectiveness and certainty in the accounts before putting them in front of the shareholders and administration