DEFINE AUDITING. EXPALIN ITS OBJECTIVES AND LIMITATIONS.
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"audit is an indipendant examination of financial information of an 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"
primary objective : reporting whether the financial statements presents a true and fair view of the financial position and financial performance.
secondary : detection and prevention of fraud and error
limitations : 1.financial reportin include assessment and degree of uncertainty
2.there are practical and legal limitations to obtain audit evidance
3.the audit to be conducted with in a reasonable period of time and reasonable cost
4. difficult ro detect the fraud incolving senior managers
primary objective : reporting whether the financial statements presents a true and fair view of the financial position and financial performance.
secondary : detection and prevention of fraud and error
limitations : 1.financial reportin include assessment and degree of uncertainty
2.there are practical and legal limitations to obtain audit evidance
3.the audit to be conducted with in a reasonable period of time and reasonable cost
4. difficult ro detect the fraud incolving senior managers
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