The purpose of an audit is to express knowledge, independent and impartial opinion about the truth and fairness set of financial statement..The opinion of an auditor on the financial statement increase the confidence in the financial statements and reduce the risk when financial statement used in decision making process..
The objective of an audit primary and subsidiary....
Express the knowledge impartial opinion on truth and fairness of financial statement..
In the subsidiary objective include..
(a) Detection of error.
(b) Error of omission.
(c) Error of duplicate.
(d) Error of principles.
Partically and logically an audit cannot achieve the full result due to limitation of audit.
> The audit is judgmental and not objective in nature. It depend on professional knowledge
and its application by the auditor..
> The auditor use statical sample and cannot audit each transactions.
> The management can misstate fact and figure through collusion..
> Evidence of audit basis of audit opinion but the audit evidence itself limitation..
> The audit report in a specific format that cannot respect vital information..
The auditor report not a guarantee of
> Future viability of the enterprise.
> Effectiveness and efficiency of management.
> Absence of fraud..