Question

- Explain the major aspects to be
covered in an audit concerning
financial statements of a company​

Answer 1

Answer:

It is very important to accurately determine the financial position of an organization. This is why auditing is done to double check the accounts system, and gain assurance of the accuracy of the financial statements of an organization.

Explanation:

The auditor must ensure that proper distinction is made between the capital and revenue transactions. All financial transactions must be properly categorized as either revenue or capital transactions. The auditor must also check the items of both income and expenditure for their accuracy.

Answer 2

The principal aspect to be covered in an audit concerning final statements of account are the following : (i) An examination of the system of accounting and internal control to ascertain whether it is appropriate for the business and helps in properly recording all transactions.