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Auditing-definition & objective of auditing
This PowerPoint presentation summarizes auditing. It covers the definition and objectives of auditing, different types of audits like statutory audit and cost audit. It also discusses internal check, its characteristics and advantages. Internal audit is explained along with its objectives, advantages and differences from internal check. The presentation is intended to provide an overview of key concepts in auditing.
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Overview of auditing, its definition, objectives, types of audits, and differences between internal audit and internal check.
Primary and secondary objectives of auditing including detection of errors, fraud, and system improvements.
Different classifications of audits such as statutory, annual, balance sheet, partial, and cost audit.
Details on internal check including its definitions, characteristics, advantages, and disadvantages regarding business operations.
Overview of internal audit, its objectives, advantages, disadvantages, and the comparison with internal check.
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Auditing-definition & objective of auditing
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- 3. TOPIC Give presentation ondefinition and objectives of auditing , class of audit, internal check and internal audit.
- 4. CONTENTS Introduction ofauditing Objective of auditing Class of audit Internal check Internal audit Internal audit vs internal check
- 5. INTRODUCTION OF AUDITING Auditing start at the end of work of accountancy auditing is critical analysis of accountancy and gives actual proof accountancy is correct or not.
- 6. OBJECTIVE OF AUDITING Primary objective of auditing Secondary objective of auditing • Detection and prevention of errors • Detection and prevention of fraud • System improvement
- 7. CLASS OF AUDIT Statutory audit Periodical/annual audit Balance sheet audit Partial audit Cost audit
- 8. INTERNAL CHECK Adivision of duties that does not permit one individual to carry out stages of a transaction .an internal check is intended to prevent fraud and minimize errors.
- 9. CHARTERISTICS OF INTERNALCHECK proper distribution of work Priority to accounting machines Change in work of employees Proper control over purchase and sales
- 10. ADVANTAGES OF INTERNALCHECK FOR THE BUSINESS • Prevention of errors and frauds • Increases the profit of te business • Proper performance of work
- 11. FOR THE AUDITOR •Quick preparation of final accounts • Reduces the work load of auditor
- 12. FOR THEOWNER • Accuracy of the accounts can be relied upon • Increase in profits
- 13. DISADVANTAGES OF INTERNALCHECK Costly for small business Quality is sacrificed for promptness Carelessness among high officials Disorder in the working of a business Risk for an auditor
- 14. INTERNAL AUDIT Internalauditing consists of continuous critical review of financial and operating activities by a staff of auditors functioning as full-time salaried employees.
- 15. OBJECTIVE OF INTERNALAUDIT Verify correctness Liabilities have been incurred Comment on the effectiveness Examine the protection Identify the authorities
- 16. DISADVANTAGES OF INTERNALAUDIT Not full proof Done by the professionals Not accepted by shareholders
- 17. ADVANTAGES OF INTERNALAUDIT Staffs remain alert Help to detect Detect the misuse of resources Check the efficiency of staffs Check the books of accounts
- 18. INTERNAL CHECK VsINTERNAL AUDIT Similarities Dissimilarities • Meaning • Object • Need for separate staff • Nature of work