The document discusses the purpose of an audit, which is to verify the accuracy of accounting records and prepare financial statements. It also mentions common errors that can occur such as transposition, addition, and posting errors. Finally, it discusses the use of suspense accounts to temporarily hold trial balance differences until the cause of the differences are found.

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*It only verifies the arithmetical accuracy of the
accounting records.
*Secondary purpose- preparation of the
financial statements.
*A link between the bookkeeping records and
income statement and statement of financial
position.

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*Transposition error
*Addition error
*Posting error
*Partial omission error
*Unequal posting error

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*Error of omission
*Compensating error
*Error of commission
*Error of principle
*Error of original entry
*Error of reversal

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*Suspense account-a temporary account holding
a trial balance difference until the cause is
found.

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