The main purpose or objectives of audit can be highlighted as follows:
1. To prove the accuracy and fairness of financial records, books of accounts and financial statements of the business firm.
2. To measure the effectiveness of internal check system in the organization.
3. To ensure the validity, reliability and authenticity of accounting system or to check that books of accounts are maintained according to the accounting principles or not.
4. To disclose the actual position of assets and liabilities.
5. Another objective of audit is to detect the accounting errors and frauds committed knowingly or unknowingly and providing appropriate suggestions to prevent them.
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Also Read:
6. To check under valuation or over valuation of assets
7. Providing accurate financial information to determine tax liabilities
8. To provide actual net result (net profit or loss) to the management and shareholders
9. To build goodwill and maintain proper image of the firm.
