CMA Intermediate · Corporate Accounting and Auditing · Nature, Scope, Objectives and Significance of Auditing
Which of the following is an example of an incidental objective of auditing?
Detection and prevention of errors and fraud is an incidental objective of auditing. The primary objective is to give an opinion on the true and fair view of the financial statements, based on reasonable assurance, while error and fraud detection supports that main purpose.
- ADetection and prevention of errors and fraudCorrect
- BExpressing an opinion on true and fair view
- CReporting on compliance with the applicable financial reporting framework as the main purpose
- DObtaining reasonable assurance that statements are free from material misstatement
Explanation
Detecting and preventing errors and fraud is classed as an incidental or subsidiary objective, as it supports the main goal of forming an opinion. The remaining options relate to the primary objective of giving an opinion based on reasonable assurance.
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