The main objective of an audit is
A. Expression of opinion
B. Detection and prevention of fraud and error
C. Both A and B
D. Depends on the type of audit
Answer: Option D
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Comments (2)
Related Questions on Auditing
A. 2, 1, 3, 4, 5
B. 1, 2, 3, 4, 5
C. 5, 1, 4, 3, 2
D. 4, 1, 3, 2, 5
Auditing and accounting are concerned with which of the following financial statements?
A. Auditing uses the theory of evidence to verify the financial information made available by accountancy
B. Auditing lends credibility dimension and quality dimension to the financial statements prepared by the accountant
C. Auditor should have a thorough knowledge of accounting concepts and convention to enable opinion on financial statements
D. All of the above
1. Statutory audit → Objective = Expression of opinion
2. Internal audit → Objective = Improve efficiency, control
3. Cost audit → Objective = Check cost records
4. Tax audit → Objective = Verify tax compliance
5. Management audit → Objective = Review managerial efficiency
So, overall if the question refers to “audit” in a general sense, someone may argue that:
➡️ The objective depends on the type of audit (Option D)
Main objective of an audit should be expression of opinion. Whereas detection and prevention of fraud and error is the primary responsibility of management.please explain in which type of audit it stands untrue.