Question

Compare the objectives of auditing at the beginning of the century to the objectives of auditing today. What are two significant contributions to auditing literature by the AICPA that helped shape the current objectives of auditing? All posts should be checked for grammar and spelling in Word.

Answer 1

In golden days the main objective of audit was to only gain financial information about the reporting entity and it to preserve the documentation thereof. Historically, Audit was only concerned about financial perspectives of the business but with the evolution of time and dynamic environment the need to cover other non-financial considerations such as internal control  audit, safety, environmental concerns, security, computer assisted audit techniques (CAAT), security, etc.

It is important to note that audit has to be conducted in a smooth and in independent manner to ensure integrity & objectivity to the stakeholders. Audit has to conducted in such a manner that it is not prejudicial to interest of concerned stakeholders.

Though, the main crux of audit is independent examination of books of accounts so as to ensure that financial statements are free from material misstatement. However, crux is also the same at present but the tools of conducting audit have evolved over a period of time.