Page 6 - DCOM509_ADVANCED_AUDITING

Dilfraz Singh, Lovely Professional University
Unit 1: Introduction to Auditing

Unit 1: Introduction to Auditing Notes

CONTENTS
Objectives
Introduction
1.1 Origin of Audit

1.2 Defining Audit
1.3 Difference between Auditing and Accounting
1.4 Objects of an Audit

1.4.1 Main Object
1.4.2 Secondary or Subsidiary Objects
1.5 Advantages of Auditing
1.6 Different Types of Audit
1.7 Difference between Internal Audit and Statutory Audit

1.7.1 Instructions
1.8 Objectives of Audit
1.8.1 Primary Objectives

1.8.2 Secondary Objectives
1.9 Summary
1.10 Keywords
1.11 Review Questions
1.12 Further Readings

Objectives

After studying this unit, you will be able to:
 Describe the origin of audit
 Define audit

 Differentiate between accountancy and auditing
 Know the objectives of auditing
 Know different classes of audit

Introduction

It is clear from the above definitions that auditing is the systematic and scientific examination of
the books of a accounts and records of a business so as to enable the auditor to satisfy himself
that the Balance Sheet and the Profit and Loss Account are properly drawn up so as to exhibit a
true and fair view of the financial state of affairs of the business and profit or loss for the
financial period. Unit explains the origin of audit and standards as defined by Companies Act

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