Analysis of the Auditing Report Purpose Essay Example | Topics and Well Written Essays - 1000 words

digest of the Auditing Report Purpose - Essay ExampleThe essay Analysis of the Auditing Report Purpose overviews the main objectives and principles of storying and the process of auditing that help an attendant in reporting the financial condition and working result of the organization. During auditing, the auditor whitethorn come across any(prenominal) errors and frauds although that is not the primary objective of the auditor. The auditor can alike disclose whether the accounting system adopted by the company is efficient enough, during which time he may mention some several glitches in the system.The auditor has to examine books of accounts and any other relevant scroll so that they can report the financial condition of the firm. During the process, the auditor may come across some errors or frauds which can be in the form of clerical errors or errors of principle. Clerical errors can be divided into errors of commission, errors of omission, and compensating errors. Some fr auds can be so damaging that they lead to the company bankruptcy. A unspoiled example is The Enron scandal that led to the bankruptcy of the corporation that was a result of audit failure.There are the following principles in auditing planning, honesty, impartiality, secrecy, evidence, consistency and legal framework. The auditor has to plan before starting their work. The auditor decides to account about the internal control procedure and the accounting. Honesty and sincerity are the second most of import principles of auditing. The auditor should exhibit a high degree of loyalty and professionalism.