Purpose of Auditing
Auditing is performed to serve a variety of crucial purposes of an organisation that helps them to grow. The basic purpose of Auditing includes:
- Testing accuracy of the books of accounts and detecting financial errors.
- Guiding organisations to overcome such errors.
- Providing a fair and clear picture of the financial position of an organization that helps in future planning and decision-making.
- Complying with the legal aspect and fulfilling the legal requirements.
- Promoting transparency and accountability in data presentation and functioning of an organization.
- Enhancing internal control and effective risk management.
- Preventing financial irregularities and fraudulent activities.