Ch 1 · Nature, Objective & Scope of Audit

📘 Core concepts

1. 1Audit: independent examination of financial statements to express opinion on true & fair view.
2. 2Inherent limitations: judgment, sampling, internal control weaknesses, time/cost.
3. 3Reasonable assurance — not absolute.
4. 4Standards on Auditing (SAs) issued by ICAI under authority of Companies Act.
5. 5SA 200: Overall Objectives — independence, professional skepticism, professional judgment.