Explain Different Objectives Of Verification And How Far Is An Auditor Responsible For The Verification Of Assets Appearing In The Balance Sheet?

Verification is the important of auditing. The auditor must verify the assets the   for determination of correct value of assets and liabilities.

The fact that there is an entry regarding the purchase of assets and which entry has been found to be correctly recorded, is not proof that assets is in possession of the concern at the date of the balance sheet. It is possible that after the assets has been acquired and the necessary entries made in the books of accounts, that asset might have been disposed off or pledged or mortgaged but no entry has been made regarding these facts in the books of accounts before closing the books, hence the object of verification of assets is the satisfaction by the auditor as to its existence, proper valuation, correct ownership, proper disclosure etc on the balance sheet.

Verification of liabilities is also as important as verification of assets. If the liabilities are overstated or understated the balance sheet will not represent a true and fair.
Auditor has different responsibilities. If the auditor fails to verify the existence of assets he will be held liable. It is not possible for the auditor to inspect each and every asset e.g. stock. If this duty is imposed on him, it may take weeks, months for him to actually inspect each asset.