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- 5 Marks
Question
Audit is the examination or inspection of various books of accounts by an auditor to certify that the accounts have been prepared according to the principles of accounting and to determine whether the Financial Statements prepared reflect a true and fair view of the state of affairs of a business.
Required:
i) State the Primary objective of an audit.
ii) State the Secondary objectives of an audit. (5 marks)
Answer
i) The primary objective of an audit is to express an independent opinion on the financial statement.
ii) The secondary objectives of an audit are:
- To fulfill legal requirements.
- To add credibility to the financial statement.
- To confirm the accuracy of figures, schedules, and notes that form part of the financial statements.
- To prevent and detect fraud and errors.
- Tags: Assurance, Audit, Financial Statements, Objectives, Secondary Objectives
- Level: Level 2
- Topic: Introduction to Audit and Assurance Engagements
- Series: APR 2022
- Uploader: Dotse