Day: December 12, 2021

The fact that audit is compulsory by law, in certain cases by itself should show that there must be some positive utility in it. The chief utility of audit lies in reliable financial statements on the basis of which the… Read More

Audit is not legally obligatory for all types of business organisations or institutions. On this basis audits may be of two broad categories i.e., audit required under law and voluntary audits. Audit required under law: The organisations which require audit… Read More

To understand auditing in its correct perspective, one should know how auditing is distinct from investigation. Auditing is different from investigation which is another significant service, a professional accountant renders. Investigation is a critical examination of the accounts with a… Read More

At this stage, it must be clear that the objective of an audit of financial statements is to enable an auditor to express an opinion on such financial statements. In fact, it is the auditor’s opinion which helps determination of… Read More

The scope of an audit as described in AAS-2 on “Objective and Scope of the Audit of Financial Statements” is reproduced below : The scope of an audit of financial statements will be determined by the auditor for having regard to… Read More

AAS-1 describes the basic principles which govern the auditor’s professional responsibilities and which should be complied with whenever an audit is carried out. Compliance with the basic principles requires the application of auditing procedures and reporting practices appropriate to the… Read More

The principal aspect to be covered in an audit concerning final statements of account are the following:  An examination of the system of accounting and internal control to ascertain whether it is appropriate for the business and helps in properly… Read More

 Expression of opinion When we speak of the objective, we rationalise the thinking process to formulate a set of attainable goals, with reference to the circumstances, feasibility and constraints. In money matters, frauds and errors are common place of occurrence.… Read More

International Auditing and Assurance Standards Board In 1977, the International Federation of Accountants (IFAC) was set up with a view to bringing harmony in the profession of accountancy on an international scale. In pursuing this mission, the IFAC Board has… Read More

According to General Guidelines on Internal Auditing issued by the ICAI, “Auditing is defined as a systematic and independent examination of data, statements, records, operations and performances (financial or otherwise) of an enterprise for a stated purpose. In any auditing… Read More