Question

1. Identify the Significance of audit objectives? And Identify the Integration of audit objectives?

Answer 1

Audit means intelligent and critical examination of books of accounts of business by independant qualified person which is done with the help of vouchers, documents, information and explanations received.

Objectives of Auditing:

Primary Objective	Secondary Objective
* True and Fair view of Financial statements.	* Detecting fraud and errors in Books of accounts
	* Make free from material misstatement

Significance of Audit Objectives:

1) Legal point of view: Filing of income tax return, Borrowing of money from external sources, statement of Insurance claims, Sales tax payment, action against bankruptcy.

2) Internal Control Point of view: Quick discovery of errors and frauds, moral check on the employees, advice to the management, uniformity in accounts.

3) External Affairs Point of view: Settlement of accounts, valuation of Assets and Goodwill, future trend of business can be assessed easily.

Integration of Audit Objectives:

An integration of audit considers the relationship between information technology, financial and operational controls in establishing an effective and efficient internal control environment.

• The business and information processing risks and controls are understood and agreed upon by the business owners, information technology delivery and support organization, and the integrated audit team.
• Manual and automated feeds, system interfaces, and communications are accurate, timely and secure.
• Manual and automated transactions are approved, timely and accurately processed.
• Information is secure and confidentiality controls follow current regulations and University standards.
• Audit should be performed and audit report be prepared by adequately trained and experienced person.
• Disaster recovery plans and business continuity plans provide reasonable assurance that both the system and business operations can recover and continue when a system or business interruption occurs.
• Program changes are authorized, tested, approved and migrated to production as prescribed by the business process owners.
• Proper Documentation should be maintained by auditor to evidence audit work and show adherence to basic principles.