The main objectives of the audit are known as the primary objectives of the audit. They are as follows:
1. Examining the system of internal check.
2. Checking arithmetical accuracy of books of accounts, verifying posting, casting, balancing etc.
3. Verifying the authenticity and validity of transactions.
4. Checking the proper distinction between capital and revenue nature of transactions.
5. Confirming the existence and value of assets and liabilities.
Verifying whether all the statutory requirements are fulfilled or not. Proving true and fairness of operating results presented by income statement and financial position presented by the balance sheet
Subsidiary Objectives of Audit
These are such objectives which are set up to help in attaining primary objectives. They are as follows:
· Detection and prevention of errors.
· Detection and prevention of frauds.
· Under-or over-valuation of stock
Other Objectives
· To provide information to income tax authority.
· To satisfy the provisions of the Companies Act.
· To have a moral effect.