How can a “true and fair view” be achieved in Indian audit?
A “true and fair view” can only be satisfied if the financial statements are accurate and not misleading.
The company can expect the auditor to have provided a true and fair view, if the following criteria are met:
- The accounts are prepared with reference to the entries in the account books;
- Entries are supported by proper vouchers, documents or other evidence;
- No entry in the account books are omitted while preparing the financial statements and nothing is included in the financial statements that were not in the account books; and
- The financial statements are prepared in accordance with the relevant accounting standards.
Furthermore, the auditor must comply with the relevant auditing standards whilst conducting the audit process and expressing his/her opinion in the audit report.
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