STUDY SESSION ONE

Auditing is the step taken to exam the financial statements and ascertainment of transactions with a view to establishing the authenticity of the financial statement of an entity. An auditor is required to express an opinion on whether the financial statements gives a “true and fair view” of the entity’s affairs as at the date of the

report.

It involves drawing up timetable, application of auditing techniques and procedures such as test-checking, vouching of files to express an opinion therein..

 

Please pay attention to the meaning of auditing, comparison between auditing and accountancy, objectives of auditing, advantages of auditing, types of audit and audit approach as it has been extensively discussed in pages 1-6 of study session 1.

 

ASSIGNMENT

Is there really any need for an audit? In not more than 150 words list the importance of carrying out an audit.