general

In today’s world, everything is digitized, which means we can access or get every service in digital format through mobile phones, computers, tablets, etc. The invention of computers and smartphones has created a huge impact […]

The main objective of auditing is to ensure the financial reliability of any organization. Independent opinion and judgement form the objectives of auditing. Auditing also helps to ensure that the books of accounts are kept […]

The origin of auditing can be traced to Italy. Around the year 1494, Luca Paciolo introduced the double entry system of bookkeeping and described the duties and responsibilities of an Auditor. Auditing in India has […]

The main objective of auditing is to ensure the financial reliability of any organization; detection of fraud is just an incidental object. Independent opinion and judgement form the objectives of auditing. The job of an […]

Auditors should be very careful about the detection of errors because manipulation in accounting may also appear as error or it may be a result of carelessness on part of a bookkeeper. Errors may be […]

Planning An Auditor should plan his work to complete his work efficiently and well within time. To plan work accordingly, an Auditor handles the following − Accounting system and policies. Internal control system of organization. […]

Following are the main advantages of auditing for different stakeholders − For the Owner and Shareholders Sole proprietor of a business and partners of firm can rely and depend on audited financial statements. Auditing is […]

Following are a few limitations of auditing − Rely on Experts − An Auditor has to rely on experts like engineers, valuers and lawyers for estimation and valuation of fixed assets and estimation of contingent […]

In this chapter, we will learn the various types/classes of Audit and their basis. The following table lists out the different types of audit. Basis Types Scope Specific Audit − Cash audit, Cost audit, Standard […]

In this chapter, we will focus on the important aspects that have to be taken care of, before commencing a new audit. Scope of Duties Auditor should know the scope of duties as per the […]

Audit planning is required for an Auditor to conduct an effective and efficient audit. Target of audit planning should be about the following − Time budgets Recruitment of audit staff Schedule about date of audit […]

The success of audit plan depends on sound and solid audit Program. An audit plan is the Auditor’s plan of action. The audit Program is specially designed for each audit is a plan of the […]

Audit Program for Sale/Sale Return The Audit Program for Sale/Sale Return involves the review and check of the following − Complete accounting system right from the receiving of sale orders from customers to the receiving […]

The Audit Program for last year acts as guide to next year’s Audit Program and changes in this Program in the current year is called modification in audit Program. There is no difficulty to make […]

  There is no hard and fast rule or method that can be laid down for auditing. It all depends on the training and experience of the Auditor and also depends on the circumstances. The […]

Supervisors Supervisors perform the following duties − Keep in touch with the audit staff. Assess and discuss the progress and completion of audit work. Take the Auditor’s advice on important issues. Rotate the duties of […]

In this chapter, let us understand the different types of evidence used in Auditing. Accounting System Accounting System of an organization must be reliable. On the basis of flow chart, the Auditor may come to […]

Evidences are very important for an Auditor to form an opinion regarding financial statements. If Auditor fails to collect proper evidence, it will reduce the reliability of audit report. The method of collecting evidence is […]

In this chapter, we will discuss how Internal Control works in Auditing. Internal Control system is one of the basic and essential factors for efficient and effective management. It covers the whole management system of […]

Previous Page Next Page   Internal Check is an integral function of the internal control system. It is an arrangement of duties of the staff members in such a way that the work performed by […]

The nature and extent of the scope of the Auditor’s work depends upon the system of Internal Check in an organization. The system of Internal Check will determine the reliability on work which an Auditor […]

In this chapter, we will understand the concept of Internal Audit in Auditing. A team of experts reviews the procedures and operations of an organization and reports it to the management in cases such as […]

These days, auditors may not go for detailed examination and verifications of records. With the introduction of efficient internal control system in organizations, Auditors pick selective portion of entries out of complete data for making […]

Accounting entries made in the books must be supported by documentary evidence and inspection of that evidence is called vouching. The Auditor judges the authenticity, of the accounting entries using the technique of vouching. In […]

In the traditional manual system of accounting, a lot of steps were involved in recording the Accounting transactions. In the present day business scenario a lot of information can be fetched in very less time, […]

Vouching of Purchase Book The major purpose behind the vouching of purchase book is to confirm that every purchase bill is entered in purchase book and the invoices entered in purchase book are against the […]

Vouching of Cash Receipts (Debit Side of Cash Book) We will discuss the cash receipt which are placed on the debit side of cash book for following items − Opening Balance of Cash Book Opening […]

We will start by discussing the types of ledger accounts and proceed to their verification and also the verification of other accounts. Personal Ledger Accounts All personal accounts are opened under this category. In big […]

Verification means the inspection of assets appearing in financial statements, whether the assets are according to legislation or not. Verification of assets and liabilities are done to confirm the following − Existence Ownership Proper valuation […]

In this chapter, we will discuss auditing related to Depreciation, Reserves and Provision. We will proceed by discussing Depreciation and move on to discussing Reserves and Provision further. What is Depreciation? Value of depreciation reduces […]

In this chapter, we will discuss the Auditing of Capital and Revenue. It is essential to distinguish revenue expenses and capital expenditure to prepare correct financial statements. The absence of these will lead to misleading […]

Maintenance of Accounts of Hospitals Being non-profit organizations, hospitals prepare Receipt & Payment account, Income & Expenditure account and Balance Sheet; following are various items that fall under income and expenditure in the hospitals. Main […]

Maintenance of Accounts of Educational Institutions A large number of educational institutions are registered under the India Society Registration Act, 1860. The purpose behind the formation of educational institutions is to spread education and not […]

he following points need to be considered by an Auditor while conducting audit of Charitable Institutions − He should know about the constitution and the legal status of Charitable Institutions. An Auditor should study the […]