CMA Intermediate · Corporate Accounting and Auditing · Nature, Scope, Objectives and Significance of Auditing
Which of the following is a subsidiary (incidental) objective of auditing rather than the primary objective?
Detection and prevention of errors and frauds is the subsidiary objective of auditing. The primary objective is to express an opinion on the financial statements and enhance users' confidence, whereas finding errors and fraud is incidental to the audit process.
- AExpressing an opinion on the true and fair view of the financial statements
- BDetection and prevention of errors and fraudsCorrect
- CReporting on whether the financial statements comply with the applicable framework
- DEnhancing the confidence of intended users in the financial statements
Explanation
Detection and prevention of errors and fraud are treated as subsidiary or incidental objectives. The other three options relate directly to forming and expressing an opinion on the financial statements, which is the primary objective.
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