Auditing
Auditing
Auditing
AUDITING
INTRODUCTION
WHAT IS AUDIT?
Necessity
of maintaining accounts
To check & verify the accounts
To check the authenticity of financial
statement
To state TRUE & FAIR VIEW
DEFINATION
By
By
ICAI
In
General
HISTORY
AUDIT IN ACCOUNTING
To ascertain
information
Audit is a vital part of accounting
An audit is an independent assessment
Performed by Auditor
To express an opinion on
person/organization/system
PURPOSE
OBJECTIVES
PRIMARY OBJECTIVES
To judge
SECONDARY OBJECTIVES
DETECTION
SCOPE OF AUDIT
ADVANTAGES OF AUDIT
To Business
To Public
To State
ADVANTAGES TO
BUSINESS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Independent Opinion
Verification of Books
Satisfaction of Owner
Detection and Prevention of Errors
Detection and Prevention of Frauds
Moral Check
Protection of the Rights and Interests of Shareholders
Reliance by Outsiders
Loan Facility
Easy Valuation
Up to Date Record
Reliance by Partners / Shareholders
ADVANTAGES TO PUBLIC
1.
2.
3.
ADVANTAGES TO STATE
1.
2.
3.
4.
Privatization of Industries
Easy Assessment of Tax
Quick Recovery of Taxes
Leading to Economic Progress
LIMITATIONS OF AUDITING
Exercise
of judgment
Material misstatements
Failing of internal control system
TYPES OF AUDIT
Legal
Time
base
of execution
Specific
Objectives
LEGAL BASE
Statutory
Audit
TIME OF EXECUTION
Continuous
Audit
Advantages
B. Disadvantages
Interim Audit
A. Advantages
B. Disadvantages
A.
SPECIFIC OBJECTIVE
Internal
Audit
Management Audit
Cost Audit
Social Audit
Due Diligence Audit
Environment Audit
Financial Audit
Proprietary Audit
System Audit
AUDITOR
Meaning
Definition
Work
TYPES OF AUDITOR
A.
B.
C.
D.
AUDIT IN COMPUTERIZED
ENVIRONMENT
Auditing
CASE STUDY
THE LEEDS ESTATE BUILDING
AND INVESTMENT COMPANY
VS.
SHEPHERD (1887)
THANK YOU