Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Nature, Scope, Objectives and Significance of Auditing

Which of the following is a primary objective of auditing, as distinct from an incidental objective?

The primary objective of auditing is to express an opinion on whether the financial statements give a true and fair view in accordance with the applicable financial reporting framework. Detecting and preventing errors and fraud are subsidiary or incidental objectives that support this main purpose.

  1. AExpressing an opinion on whether the financial statements give a true and fair viewCorrect
  2. BDetection of fraud
  3. CDetection of errors of principle
  4. DPrevention of errors and fraud through internal checks

Explanation

The primary objective is to report on the truth and fairness of the financial statements under the applicable framework. Detection and prevention of fraud and errors are treated as subsidiary or incidental objectives. Hence the other options are incidental objectives, not primary.

Did you get it right without looking?

One question tells you little. A timed set on Nature, Scope, Objectives and Significance of Auditing shows your real accuracy, how long you take and where you lose marks.

Practise Nature, Scope, Objectives and Significance of AuditingFree diagnostic mock

More Nature, Scope, Objectives and Significance of Auditing questions