Audit theory and true and fair view
The Primary objective of auditing is to produce a report by the auditor of his opinion of the truth and fairness of financial statements so that any person reading and using them can have belief in them.
Different methodology can be used to arrive at his opinion:
Vouching audit:
Vouching means "such examination of the ledger entries as will satisfy an auditor not only that the entry is supported by documentary evidence but that it has been properly made upon the books of account".

b. The emphasis is on ascertaining-

i) That every entry in the books of account is supported by a voucher and that no voucher has gone unrecorded in the books of account; ii) That the transaction is genuinely concerned with the business iii) That the amount involved in the transaction has been accurately recorded and iv) That the entry has been made correctly in the appropriate account

C. The main objectives of vouching are:

a. All transactions connected with the business have been properly recorded in the books of account
b. The entries in the books of account pertain to transactions which are genuinely connected with the business
c. The vouchers in support of the entries are legally valid, in the sense that they are authentic, properly dated, addressed to the business of the client, and are not fraudulent in any respect
d. The vouchers have been carefully processed through each stage of an effective system of internal check
e. The vouchers have been properly authorised.
This method is mainly used in small audit when the number of transactions are not too large
Audit where the internal control is weak or non existent
Specialized audit such as trusts
System based audit
In large companies it is most economical to adopt the audit process as follows::

In arriving at his opinion the modern audit should be carried out in the