Serving revision, review and evaluation of the results of the administrative and financial management of an institution or entity (company or partnership) for the purpose of informing or an opinion about them, making observations and recommendations to improve their effectiveness and efficiency in performance.
The objective of an audit is to state a professional technical opinion (favorable, unfavorable, denied or qualified) about whether the financial statements present, in all important aspects, a faithful image of the financial position of the company. Audit procedures are not the same for all companies.
There are certain technical rules which set the guidelines on how to do the job. However, finally, it is the auditor who determines the procedures to be applied. These procedures are designed more to give shape to an opinion than to necessarily detect errors and irregularities of any kind or amounts that may have been made while working on the annual accounts.