define auditing . explain the objectives and limitations of auditing
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The inspection of a company or business money transactions by an official body is called auditing.
The objective of auditing is to give your honest findings on the financial matters of the company.Limitations of auditing are the inability to get enough evidence and proof about a matter in financial declaration.
The objective of auditing is to give your honest findings on the financial matters of the company.Limitations of auditing are the inability to get enough evidence and proof about a matter in financial declaration.
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Financial report of the company which is presented as an annual report, this report includes verification financial accounts of the company. Financial accounts consist of the all the transactions which took place in the function, process, and production of the product.
The objective of auditing is to make sure there is not the flaw in the transactions made or there is no transaction which was overstated, in order to protect from the fraud and theft, companies go through the process of auditing, in order to have the true and fair report of the operations being held in the company.
This method is not suitable for the non-financial matters as they are not considered in this method, another constraint for auditing is that it has to completed within a specific time frame so there are chances of mistakes being made by the auditor and there is a lot of data which has to be analyzed.
The objective of auditing is to make sure there is not the flaw in the transactions made or there is no transaction which was overstated, in order to protect from the fraud and theft, companies go through the process of auditing, in order to have the true and fair report of the operations being held in the company.
This method is not suitable for the non-financial matters as they are not considered in this method, another constraint for auditing is that it has to completed within a specific time frame so there are chances of mistakes being made by the auditor and there is a lot of data which has to be analyzed.
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