Posted by: Priya J. on 25.07.2019Ask a Question
Opinion without and prejuidice and fullfilling all concepts and assumptions
After preparing final accounts of the firm and during audit the auditor always search for the transparency of the accounts. In the case of profit and loss a/c it should exhibit a true and correct view of the state of affairs of the firm and in the case of balance sheet it should exhibit a true and fair view meaning that there should not be any suspicious figures both in the assets and liabilities side which may create confusion amongst the stakeholders of the company. It should be transparent.
in Accountancy ,Balance Sheet should exhibit a true and fair view of the state of affairs of the business i.e.in the eye of the Stakeholders, the figures shown in the BalanceSheet should be in consistent with the past figures and nothing should be hidden or windowdressed.
in the case of Auditing ,it is the duty of Auditors to see that the finanancial Statement should exhibit a True and Fair view of the Companies affairs of busuness.
'True and Fair View' stands an utmost importance in the arena of accountancy and auditing. In fact, whole concept of auditing revolves around whether the accounts show true and fair view of the entity or not.
Accounts are prepared in line with the concept of true and fair, where it is to be assured that the books of accounts are-
In fact, Ind AS or GAAP has given enough flexibility to the management to choose the method of preparation of accounts, so that they can abide by the concept of 'true and fair'.
Since, auditing is an examination of accounts of the company, hence, the auditor has to ensure that the books of accounts give a true and fair view of the operations of the entity of the company.
Get 5 credit points for each correct answer. The best one gets 25 in all.