INTRODUCTION An audit is a systematic process of objectively and evaluating evidences regarding assertions about economic actions and events

to ascertain the degree of correspondence between those assertions and the established criteria, and communicating the results to interested users. Now, from the definition above, Audit is not wastage of time and resources because of the following components; 1) Audit is the Systematic Approach That, where auditors follow a structured, documented plan (i.e the audit plan), since it is structured and follows a plan already put in place, then there is neither wastage of time nor resources at all. The audit plan must be planned and structured in terms of money, time and human force in such a way that it enables the auditor fully to examine and analyze all important evidences to help draw the opinion. 2) An audit is conducted objectively An audit is an independent, objective and expert examination and evaluation of evidence. Auditors are fair and do not allow prejudice or bias to override their objectively. They maintain an impartial attitude. 3) The auditor during the audit, obtains and evaluates the evidences The auditor assesses the reliability and sufficiency of the information contained in the underlying accounting records and other source data by studying and evaluating accounting systems and the internal controls on which he wishes to rely and testing those internal controls to determine the nature, the extent and nature of other auditing procedures and carrying out such other tests, inquiries and other verification procedures of accounting transactions and account balances he considers appropriate in the particular circumstances. 4) An audit is all about assertions of economic actions and events The basis of evidence gathering objectives, what the evidence must prove, are the assertions of the management. Assertions are representations of management, explicit or otherwise, that are embodied in the financial statements. One example of assertion of management about economic actions is that, all the assets reported on the balance sheet actually exist at the balance sheet date. The assets are real and not fictitious- this is the existence assertion. Furthermore, management asserts that the firm owns all those assets, they do not belong to anyone else- this is the rights and obligation assertion.
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5) In Audit the auditor ascertains the degree of correspondence between the assertions and established criteria The audit program tests most assertions by examining the physical evidence of documents, confirmation, inquiry and observation. The auditor examines the evidences for the assertions presentation and disclosures to determine if the accounts are described in accordance with the applicable financial reporting framework, such as IFRS, IPSAS, ISAs, Local Standards or regulation and laws. 6) In audit, the auditor communicate the results to interested users The audit is conducted with the aim of expressing an informed and credible opinion in a written report. If the item audited in the financial statements, the auditor must state in his opinion the statement give a true and fair view or present fairly in all material respect the financial position of the company. The purpose of the independent expert opinion is to lend credibility to the financial statements. The communication of the auditors opinion is called attestation, or the attest function. In an audit, this attestation is called the Audit Report. The objective of Auditing Introduction The International Auditing and Assurance Standard Board (IAASB), which is the body responsible for issuing international accounting standards and guidelines states that; The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared in all material respect, and in accordance with an applicable financial reporting framework. The phrases used to express auditors opinion are give a true and fair view or present fairly in all material respect which are equivalent terms. The applicable financial reporting framework comprises those requirements of accounting standards, laws and regulations applicable to the entity. The role of auditors is to gather sufficient evidences so as to enable him form an opinion on the accuracy and correctness of the financial statements. The primary aim of an audit then is, to enable the auditor to say those accounts show a true and fair view or of course, to say that they do not.

Therefore, the objectives of the audit can now be summarized in to two; 1. Primary Objective That, where the auditor produces the report of his opinion of the truth and fairness of financial statements so that any person reading and using them can have assurance in them. 2. Secondary Objective [Corrective] a) To advise the management of any defects or problems with their accounting and internal control system and to suggest the best way of improving them. b) To detect fraud and errors if any and corrective measures c) In addition, to carry out the audit, auditor are able to assist their clients with accounting problems, financial reporting system, taxation, financial risk management and other problems. In order to meet the above mentioned objectives, Value for Money Audits must be conducted, where an investigation into whether or not the use of resources is economic, efficient and effective. And to identify and recommend ways in which the return for resources employed may be examined. To achieve the Value for Money, audit must be classified into three types namely; Audits of Financial Statements Operational Audits Compliance Audits

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Audits of Financial Statements These examine financial statements to determine if they give a true and fair view or fairly represents the financial statements in conformity with special criteria.. Those criteria may be International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principle (GAAP). Operational Audits This is the study of a specific unit of an organization for the purpose of measuring its performance. Operational Audits review all or part of the organizations operating procedures to evaluate effectiveness and efficiency of the operation. Effectiveness is a measure of whether an organization achieves its goals and Efficiency shows how well an organization uses its resources economically to achieve its targets.

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Compliance Audits This is a review of an organizations procedures to determine whether the organization is following specific procedures, rules and regulations set out by some higher authority. A compliance audit measures the compliance of an entity with established criteria. The performance of a compliance audit is dependent upon the existence of verifiable data and of recognized criteria or standards such as established laws and regulations or policies and procedures. Accounting personnel, for example, may be evaluated to determine if they are following the procedures prescribed by the company controller. Results of compliance audits are generally reported to management within the organizational unit being audited.

In the absence of Audit the following would be the pitfalls: There would have been no independent confirmation of profit to directors There would have been no check and balance pertaining to either assurance of compliance with accounting standards or legal requirements and hence none would make recommendations on systems. It would be difficult to detect material errors arose from misstatement and fraud. Tax Authorities and Financial Institutions would have no base to rely on. Credibility on financial information would not be there because every entity would prepare reports without following acceptable criteria and standards.

CONCLUSION All in all, Audit is the very important aspects since after the process; the auditor is expected to express his opinion as to whether the Financial Statements are prepared in all material respects, and in accordance with an identified financial reporting framework or they do not; and if they dont, it is then the responsibility of the auditor to drawing out proper recommendations and corrective measures to improve the situation. If those recommendations are not yet implemented, then audit would have no value and hence be the waste of time and resources.

Reference; Auditing Simplified by Saleemi N.A, Google Search Engine and Auditing and Assuarance Services Tutorial Notes