1. INTRODUCTION
AN OVERVIEW OF
AUDITING

2. History:
Spicer & Pegler ( Early Auditor )
Its was derived from Latin word “audire”
means to hear.
Earlier objectives of auditing was to
detect error and fraud.

3. Definition:
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.

4. Types of Information
(i) Reliable Information
(ii) Unreliable Information

5. 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
concern authority.

6. Objective of the Auditing
Primary Objectives:
To report the owner either the financial statement
gives true and fair result/ review or not.
Secondary Objectives:
Intentional or Unintentionally detection of error and
fraud

7. Expression of opinion
Qualified Opinion
True & Fair view of financial statement or
according to GAAP principle.
Unqualified Opinion:
Something new or not according to GAAP
principle.
Adverse Opinion:
Don’t present fairly the financial position, result of
operation, and cash flow of the entity.