Auditing: Introduction And Objectives
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This document discusses the introduction, objectives, and advantages of auditing. It covers the history of auditing from double-entry bookkeeping to modern practices. The objectives of auditing are to verify the accuracy of financial statements and detect errors and fraud. Auditing ensures the primary objective of reporting accurate financial information to management and compliance with laws. It also aims to detect and prevent errors, frauds, and false representations in financial records through systematic examination of books and accounts.
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Auditing: Introduction And Objectives
- 1. Auditing: Introduction And Objectives Anjani Antony Assistant Professor Department of Commerce St. Mary’s College Thrissur-680020 Kerala
- 2. Auditing,Anjani Antony,St.Mary’s College Introduction of double entry Industrial revolution Statutory auditing companies act 1956,2013 IASC Renaissance Computer accounting Auditing practices SEBI Corporate governance Globalization Nano technology Multinational companies Independence of auditor Court judgement
- 3. Auditing,Anjani Antony,St.Mary’s College Meaning of Auditing Systematic examination of books Verify authenticity and accuracy Derived from latin word audire which means to hear Auditor means one who hears Find out whether the transactions entered are correct or not.
- 4. Auditing,Anjani Antony,St.Mary’s College Investigation An act of detailed examination of books and accounts. Specific purpose. Referred as special audit. Involves enquiry into facts behind the books of accounts. Disclose the true and fair position of the business.
- 5. Auditing,Anjani Antony,St.Mary’s College Submission of Investigation Report On behalf of an intending purchaser of On behalf of an incoming partner On behalf of management where fraud suspected Misappropriation of cash Misappropriation of goods Manipulation of accounts
- 6. Auditing,Anjani Antony,St.Mary’s College Objects of auditing Primary object Primary objective of auditing is reporting to the management and to see whether the final accounts are drawn as per law. Subsidiary objects Detection and prevention of errors Detection and prevention of frauds
- 8. Detection and prevention of errors Errors of ommission Errors of commission Compensating errors or offsetting errors Errors of principles Detection and prevention of fraud Fraud means false representation or making a wrong entry intentionally to defraud somebody Auditing,Anjani Antony,St.Mary’s College
- 9. Types of fraud Misappropriation of cash Omitting to enter a receipt Acknowledging lesser amount than actual receipts Entering fictitious payment Computer related fraud Computer fraud Auditing,Anjani Antony,St.Mary’s College
- 10. Qualities and qualifications of a professional auditor Professional qualifications- statutory qualifications Professional qualities or personal qualifications Personal qualities- general qualities Auditing,Anjani Antony,St.Mary’s College
- 11. Advantages of auditing Auditing,Anjani Antony,St.Mary’s College