Meaning of true in auditing, Auditing

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Meaning of True in Auditing

Meaning of 'true and fair'/present fairly'

Truth in accounting is quite different form scientific truth.  Accounting does without a deal along with that type of truth that has a fixed and unchanging quality.  Revenues and costs for any accounting period such is less rather than the full life of every venture include cannot be determined along with precision.  In accounting only cash draws close to the concept of scientific truth, since the value of cash changes along with time, it lacks entire correspondence along with the precision of scientific truth.

An auditor should attempt to ensure which the accounts such are subject of his audit present equitably and clearly the financial situation of the enterprise.  This suggests which in order to achieve the statutory true and fair view it is necessary not only to present certain information impartially but also that this data is shown in such a way that it is clearly understood by the user.


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