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Following are the main objectives of final audit.
a. To fulfil the legal requirement.
b. To examine the financial records and transactions as per prevailing financial rules
and regulation or not.
c. To detect and prevent the errors and frauds.
d. To show the real and fair financial position of the firm.
e. To evaluate the effectiveness, efficiency, economy and authenticity of the financial
transactions.
f. To encourage the firm to maintain public account ability and transparency, etc.

Key Point It is the act of examining the books of account by an individual auditor to
disclose the real and true financial position for a certain period.

Differences Between Internal Auditing and Final Auditing

Internal Auditing Final Auditing
Internal auditing is conducted by the Final auditing in the company is done by the
employees of the same organizations. auditor appointed by AGM.

The duties and responsibilities of internal The duty of final auditors is to certify truth.
auditors are fixed by the management.
Internal auditor works as the helper of office The final auditor works as controller.
chief.
In government organizations, the employees Auditor General or by the auditor stated by
of the Treasury and Comptroller Office conduct the office conducts external auditing.
internal audit.
Internal auditing is done to correct mistake Final auditing is done to find mistake and
and for advice. take actions to the faulty.
The faults found by internal auditor can be The faults found by final auditors are
corrected before the final auditing. forwarded for action.
Internal audit is carried out on a detailed External audit is carried out generally on a
basis. random sampling basis.

11. Importance of Auditing
There is increasing importance of auditing in both the sectors: government and
business. Auditing makes the accounts transparent, so creditability to business and
government from the people increases.
Some benefits are given below:
i. Detect and Prevent Frauds and Mistakes
Mistakes committed unintentionally or intentionally in the government and
businesses are found by the internal and external auditing. So personnel involved will be
cautious for doing such mistake in the future.

196 Aakar’s Office Practice and Accountancy - 10 Government Accounting System 197