Privacy Policy
Prior to 1500 AD, nearly all accounting was concerned with accounting for the activities of government and the only form of auditing was the keeping of separate records by two different scribes. The objective of maintaining such records was primarily to detect fraud.
The industrial revolution (1750-1850) was the catalyst of a great period of economic growth in Great Britain, one feature of which was the passing of management from owners to professional managers. This led, in the period 1850 to 1905, to an increased demand for auditors who were independent of management and who were engaged to detect not only clerical errors, but also management fraud.

It was during this time that the concept of 'testing' evolved. That is, auditors selected "a few haphazard cases" where it was not economically feasible to physically examine all transactions that took place.

During the period 1933-1940, there was an acceptance by auditors of somewhat 'softer' audit objectives and the wording of the standard auditor's report on the financial statements reflected this change.

During the period 1960-1980, an assessment of the reliability of internal control became the accepted method of determining the nature, timing and extent of many audit procedures. This led to the extensive use of what was called 'systems-based auditing'.
Although the objectives of an audit have remained unchanged since about 1940, pressure from the public to widen audit objectives to embrace, for example, the detection of fraud, continues.
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