Though mandatory, the main objective of auditing is to ensure the financial reliability of any organization. Independent opinion and judgement form the objectives of auditing. Auditing also helps to ensure that the books of accounts are kept according to the rules stipulated from time to time and whether the books of accounts show a true and fair view of the state of affairs of the society or not.
“Auditing is a systematic and independent examination of data, statements, records, operations and performances (financial or otherwise) of an enterprise for a stated purpose. In any auditing situation, the Auditor perceives and recognizes the propositions before him for examination, collects evidence, evaluates the same and on this basis, formulates his judgment which is communicated through his audit report.”