📘 Introduction – What is the Purpose of Auditing?
Let’s first ask a basic question:
👉 Why do companies get their accounts audited?
Because they want to be sure that all their records – like profit, expenses, assets – are correct and honest.
This checking work is done by an auditor.
Now, when an auditor checks these records, they don’t just check randomly. They follow clear goals. These are called Objectives of Auditing.
There are two main types:
- ✅ Primary Objective – Main Goal
- ✅ Secondary Objectives – Supporting Goals
Let’s now understand both, step by step, in very easy words.
📸 Image Suggestion 1
✅ 1. Primary Objective of Auditing – The Main Goal
This is the main job of the auditor.
🎯 To check whether the financial statements show a “True and Fair View.”
This means the auditor checks:
- Is the Profit and Loss Account correct?
- Is the Balance Sheet showing actual assets and liabilities?
- Are all entries done properly?
- Are there any big mistakes?
💡 Example:
Just like a teacher checks your answer sheet and gives final marks only after confirming everything is correct — an auditor does the same for company accounts.
👉 So, Primary Objective = Final checking and giving honest opinion.
✅ 2. Secondary Objectives of Auditing – Supporting Goals
These are the extra tasks the auditor does to help complete the primary goal.
Let’s understand them with real-life examples.
🔍 A. Detection of Errors
The auditor finds mistakes in the books.
Types of errors:
- Wrong amounts
- Posting in wrong account
- Skipping entries
- Writing the same thing twice
💡 Example:
If a purchase of ₹5,000 is wrongly entered as ₹50,000 — the auditor will catch this mistake.
🕵️ B. Detection of Frauds
Fraud means cheating for personal gain. It is done intentionally.
Types of fraud:
- Fake bills
- Hiding cash received
- Claiming fake expenses
- Manipulating stock figures
💡 Example:
If an employee shows a fake travel bill to get ₹2,000 refund — the auditor will detect this during checking.
🛠️ C. Prevention of Errors and Frauds
By carefully checking and giving suggestions, auditors help the company stop such problems from happening again.
💡 Example:
Auditor may suggest to keep cash locked, check bills daily, or use password-protected accounting software.
📊 Quick Comparison – Primary vs. Secondary Objectives
| 🔍 Feature | 🎯 Primary Objective | 🔧 Secondary Objectives |
|---|---|---|
| Meaning | Main aim of audit | Extra goals to help main aim |
| Focus | Final accounts (P&L, Balance Sheet) | Detailed records (bills, vouchers, ledgers) |
| Job | Give final opinion – “True and Fair” view | Find mistakes, frauds, give suggestions |
| Importance | Most important objective | Helps to complete the primary objective |
| Example | Auditor says: “Accounts are correct.” | Auditor finds ₹10,000 entered wrongly |
✅ Easy Revision Tips (Perfect for Exams)
📌 Primary Objective = To check if final accounts are true and fair.
📌 Secondary Objectives = To detect and prevent errors and frauds.
✍️ Shortcut:
P = Primary = “Perfect Picture”
S = Secondary = “Search for Errors & Stop Frauds”
🎯 Conclusion – Two Objectives, One Goal
Even though we call them two objectives, both are connected.
The primary objective is the final result,
and the secondary objectives are the tools to reach that result.
Like a builder needs bricks to build a house, the auditor uses secondary checks to give a final opinion.
💡 Simple Thought:
Without finding errors and frauds, an auditor can’t say the accounts are “true and fair.”
So both objectives are equally important.