Spicer & Pegler ( Early Auditor )
Its was derived from Latin word “audire”
means to hear.
Earlier objectives of auditing was to
detect error and fraud.
The examination of books of accounts
and business voucher in order to see
whether these books of account and
business voucher gives true and fair
view of the company or not.
Types of Information
(i) Reliable Information
(ii) Unreliable Information
Features of the Auditing
1. Systematic & Scientific Examination
2. External or Independent Auditor
3. It is a critical review of accounting system
& internal control
4. Detect errors and fraud.
5. Decision based on information provided by
Objective of the Auditing
To report the owner either the financial statement
gives true and fair result/ review or not.
Intentional or Unintentionally detection of error and
Expression of opinion
True & Fair view of financial statement or
according to GAAP principle.
Something new or not according to GAAP
Don’t present fairly the financial position, result of
operation, and cash flow of the entity.