Question

Which of the following can be treated as benefit of auditing?

• A. Auditing satisfies owner about the business operations.
• B. Detection and prevention of errors and frauds.
• C. Auditing helps in maintaining records up to date.
• D. All of above

Answer 1

The correct option is D All of above

It is the auditors responsibility to verify all the business transactions along with the verification of documentary evidence available. The main object of audit is to detect and prevent the frauds.

To conduct the audit of an organization, auditor has right to access books, accounts, vouchers and ask for all the information and explanation wherever required. Audit report has to be signed by the auditor only.

The auditor has to report to the management on the true and fair view of financial statements which includes profit & loss account and balance sheet of the organization.