The document is an introduction to auditing that defines auditing, outlines its objectives, and discusses its advantages. It defines auditing as the examination of accounting records by a qualified independent person to express an opinion on the truth and fairness of financial statements. The primary objectives of an audit are to examine accounting policies, determine the fairness of statements, and check compliance with laws. Additional objectives include detecting errors and frauds, satisfying tax authorities for loan/investment purposes, and providing supervision and prevention. The advantages of auditing are outlined as providing moral/legal compliance for businesses, owners, governments, lenders and the public.
The document discusses the history, meaning, purpose, need and process of auditing. It begins with the history of auditing originating from merchants assigning transactions to be heard to detect fraud. The main purposes of auditing are to check the true and fair view of accounting records and detect errors and frauds. An audit is needed when ownership is separate from management and transactions are numerous. The auditor's role is to examine transactions, verify assets/liabilities, and prepare a report. Key steps in an audit include appointment confirmation, engagement letters, understanding the business, risk assessment, determining materiality, and developing an audit plan.
The document provides an overview of auditing, including definitions of auditing, objectives of auditing, types of audits, and qualifications of auditors. It discusses:
1) Auditing involves verifying financial statements and examining accounts to determine if they accurately reflect transactions and provide a true and fair view of financial position.
2) The main objective of auditing is to evaluate the reliability of financial statements and ensure they present a true and fair view. Subsidiary objectives include detecting and preventing fraud and errors.
3) Audits can be classified based on ownership (sole proprietorship, partnership, company), time (interim, continuous, final), or objectives (internal, cost, secretarial
Audit is an important control function that serves multiple purposes. [1] Audits independently examine financial records and operations to identify errors, fraud, and weaknesses. [2] They provide transparency to owners, lenders, government, and other stakeholders about an organization's true financial health and performance. [3] Audits help improve accuracy, compliance, efficiency and provide assurances to support decision making.
accountings and financial anulysis.pptxKrishan Saini
The document provides an overview of accounting concepts, principles, and equations. It defines accounting as the process of recording financial transactions and communicating financial information. Some key points covered include:
- The basic accounting equation is Assets = Liabilities + Owner's Equity, indicating that assets are equal to liabilities plus the owner's investment.
- Accounting principles include accrual basis, matching, full disclosure, consistency, and conservatism.
- Accounting concepts include business entity, money measurement, cost, going concern, and dual aspect.
- Accounting has expanded in scope to include businesses, non-profits, governments, and individuals.
This document provides an overview of auditing, including:
- The objectives and evolution of auditing from detecting errors and frauds to ascertaining if accounts are true and fair.
- Key definitions including that auditing is a systematic and independent examination of data, statements, records, operations and performance for a stated purpose.
- The features and objectives of auditing including verifying financial statements exhibit a true and fair view, and expressing an opinion on the statements.
1. Auditing originated in the 18th century with the rise of large-scale industries and businesses, which led to more complex accounting practices.
2. Auditing involves the systematic and independent examination of a company's financial records and documents to verify that the financial statements accurately reflect the company's transactions and financial position.
3. Auditing provides benefits such as detecting errors and fraud, protecting shareholder interests, checking directors and management, and giving an independent opinion on the business's financial health. However, auditors also face limitations like not detecting every fraud and having to rely on information from company personnel.
1. Auditing originated in the 18th century with the rise of large-scale industries and businesses, which led to a need to systematically examine their financial records.
2. Auditing involves the independent examination of a company's financial records and documents to verify that their financial statements accurately reflect the company's transactions and financial position.
3. The document discusses the definition of auditing, its key features and aspects, the advantages of auditing such as error detection and fraud prevention, and some limitations such as the inability of auditors to detect certain well-hidden frauds.
Role of various agencies in ensuring ethics in corporations by pankajPankaj Chandel
The document discusses the role of various agencies in ensuring ethics in corporations, including public opinion, auditors, boards of directors, media, government agencies, judiciary, and whistleblowers. It focuses on the duties and responsibilities of auditors in India, such as certifying accurate financial reporting, compliance audits, and identifying issues. Several committees have made recommendations to improve auditing practices by establishing audit committees, rotating audit partners, prohibiting non-audit services, and increasing financial disclosures and penalties for improper conduct.
The document discusses the history, meaning, purpose, need and process of auditing. It begins with the history of auditing originating from merchants assigning transactions to be heard to detect fraud. The main purposes of auditing are to check the true and fair view of accounting records and detect errors and frauds. An audit is needed when ownership is separate from management and transactions are numerous. The auditor's role is to examine transactions, verify assets/liabilities, and prepare a report. Key steps in an audit include appointment confirmation, engagement letters, understanding the business, risk assessment, determining materiality, and developing an audit plan.
The document provides an overview of auditing, including definitions of auditing, objectives of auditing, types of audits, and qualifications of auditors. It discusses:
1) Auditing involves verifying financial statements and examining accounts to determine if they accurately reflect transactions and provide a true and fair view of financial position.
2) The main objective of auditing is to evaluate the reliability of financial statements and ensure they present a true and fair view. Subsidiary objectives include detecting and preventing fraud and errors.
3) Audits can be classified based on ownership (sole proprietorship, partnership, company), time (interim, continuous, final), or objectives (internal, cost, secretarial
Audit is an important control function that serves multiple purposes. [1] Audits independently examine financial records and operations to identify errors, fraud, and weaknesses. [2] They provide transparency to owners, lenders, government, and other stakeholders about an organization's true financial health and performance. [3] Audits help improve accuracy, compliance, efficiency and provide assurances to support decision making.
accountings and financial anulysis.pptxKrishan Saini
The document provides an overview of accounting concepts, principles, and equations. It defines accounting as the process of recording financial transactions and communicating financial information. Some key points covered include:
- The basic accounting equation is Assets = Liabilities + Owner's Equity, indicating that assets are equal to liabilities plus the owner's investment.
- Accounting principles include accrual basis, matching, full disclosure, consistency, and conservatism.
- Accounting concepts include business entity, money measurement, cost, going concern, and dual aspect.
- Accounting has expanded in scope to include businesses, non-profits, governments, and individuals.
This document provides an overview of auditing, including:
- The objectives and evolution of auditing from detecting errors and frauds to ascertaining if accounts are true and fair.
- Key definitions including that auditing is a systematic and independent examination of data, statements, records, operations and performance for a stated purpose.
- The features and objectives of auditing including verifying financial statements exhibit a true and fair view, and expressing an opinion on the statements.
1. Auditing originated in the 18th century with the rise of large-scale industries and businesses, which led to more complex accounting practices.
2. Auditing involves the systematic and independent examination of a company's financial records and documents to verify that the financial statements accurately reflect the company's transactions and financial position.
3. Auditing provides benefits such as detecting errors and fraud, protecting shareholder interests, checking directors and management, and giving an independent opinion on the business's financial health. However, auditors also face limitations like not detecting every fraud and having to rely on information from company personnel.
1. Auditing originated in the 18th century with the rise of large-scale industries and businesses, which led to a need to systematically examine their financial records.
2. Auditing involves the independent examination of a company's financial records and documents to verify that their financial statements accurately reflect the company's transactions and financial position.
3. The document discusses the definition of auditing, its key features and aspects, the advantages of auditing such as error detection and fraud prevention, and some limitations such as the inability of auditors to detect certain well-hidden frauds.
Role of various agencies in ensuring ethics in corporations by pankajPankaj Chandel
The document discusses the role of various agencies in ensuring ethics in corporations, including public opinion, auditors, boards of directors, media, government agencies, judiciary, and whistleblowers. It focuses on the duties and responsibilities of auditors in India, such as certifying accurate financial reporting, compliance audits, and identifying issues. Several committees have made recommendations to improve auditing practices by establishing audit committees, rotating audit partners, prohibiting non-audit services, and increasing financial disclosures and penalties for improper conduct.
The document provides an overview of regulation and legal matters related to advanced audit and assurance. It discusses the definition and need for assurance regarding financial and operational information. The key elements of an assurance engagement are identified as having a three party relationship, appropriate subject matter, suitable criteria, sufficient evidence, and a written report. Auditing is defined as the independent examination and expression of an opinion on financial statements. Auditor independence and professional skepticism are important concepts. The expectation gap in auditing and ways to bridge it, such as through education, are also examined.
This document provides an overview of auditing, including:
1. It describes the evolution of auditing from early "vouching audits" where auditors checked all transactions, to modern "system based audits" where auditors rely on internal controls and sample transactions due to increased volume.
2. It defines auditing as an independent examination of financial records and statements to determine if proper accounting practices were followed and financial statements accurately portray the entity's financial position.
3. It discusses the objectives, duties, and rights of auditors, as well as the parties that benefit from audited financial statements such as creditors, customers, bankers, and shareholders.
This document provides definitions and explanations of key accounting terms used in financial audits and accounting. It defines accounting as the systematic recording, reporting, and analysis of financial transactions of a business. It explains key terms like balance sheet, asset, income statement, cash flow statement, accounting methods, accounts payable, and accounts receivable. It also discusses the purpose of auditing financial statements, which is to provide accountability and reliability to stakeholders by expressing an opinion on whether financial statements are fairly presented.
This document provides an introduction to basic accounting concepts. It begins by defining key terms like assets, liabilities, capital, and accounting periods. It then explains important accounting principles and financial statements, including accrual accounting, accounts receivable/payable, and the balance sheet, income statement, and statement of cash flows. The overall purpose is to familiarize readers with fundamental accounting vocabulary and practices.
This document provides an overview of audit and assurance from Amirus Salat, a professor of accounting and information systems. It discusses the Enron scandal and how it impacted auditing standards. It defines auditing and the objective to provide an independent opinion on whether financial statements are fairly presented. The document outlines the roles and responsibilities of management, auditors, and users in an audit. It also distinguishes between different types of audits and degrees in accounting.
- Private and public limited companies in India must undergo annual audits of their financial statements by a chartered accountant. This process ensures compliance with legal requirements and proper accounting practices.
- The statutory duties of an auditor include giving an independent opinion on the accuracy of the company's financial statements and assessing if they were prepared according to accounting standards. The auditor must also check for compliance with relevant laws.
- Company directors are responsible for preparing accurate financial statements according to International Financial Reporting Standards and for making sure proper accounting records are maintained. They must also safeguard company assets and take steps to prevent fraud.
- Regular audits provide several advantages like ensuring compliance, improving business systems, enhancing credibility with stakeholders, detecting
This document provides an overview of auditing and assurance services. It defines auditing as a systematic process of objectively obtaining and evaluating evidence to ascertain the degree of correspondence between assertions and established criteria. The key relationships are discussed between assurance services, attestation engagements, and auditing, with auditing focused specifically on financial statements. The roles and responsibilities outlined in the Sarbanes-Oxley Act are summarized, including management's responsibility for financial reporting and the prohibitions on certain client services. The types of audits, auditors, and organization of the accounting profession are also briefly described.
The document discusses the concept of a "true and fair view" in financial accounting. It explains that a true and fair view is an idealistic aim that requires judgment, though there is no precise definition. It also outlines some of the attributes and conditions that could indicate a true and fair view, such as accurate and complete records, adherence to accounting principles and standards, and following legal requirements. The document notes that concepts like going concern, consistency, and accruals help ensure information is presented accurately and consistently to support the true and fair view expression.
Financial statements are reports prepared by a company's management to present the company's financial performance and position at a point in time. The four main financial statements are the balance sheet, income statement, statement of cash flows, and statement of changes in equity. These statements provide important information to both internal and external users of the company's financial reports.
The document discusses various accounting concepts and principles. It defines accounting concepts as basic rules, assumptions, and principles that act as standards for recording business transactions and maintaining books of accounts. It describes key concepts like business entity, money measurement, going concern, accounting period, cost, dual aspect, matching, realization, and accrual. It also discusses accounting conventions like consistency, conservatism, materiality, and full disclosure. Finally, it lists important accounting principles like accrual, consistency, conservatism, going concern, matching, and full disclosure.
This document provides an introduction to accounting. It defines accounting as identifying, measuring, and communicating economic information to allow for informed decisions. The purpose of accounting is to provide standard financial information to assess profit/loss, asset value, cash flows, debts owed/due, and financial health. There are two main branches - financial accounting which records transactions and prepares financial statements, and management accounting which provides internal information to aid decision making. Key users of accounting information and their needs are also outlined.
The document discusses key accounting concepts and principles. It defines accounting as identifying, measuring, recording and communicating financial information. The main components of the accounting process are recording transactions, summarizing data, reporting to stakeholders, and analyzing results. Accounting serves both internal users like management and owners as well as external users like investors, lenders, suppliers, customers, tax authorities, auditors, and the public. Accounting concepts provide fundamental rules and assumptions for preparing financial statements according to standards.
AUDITING Accounts PayableDiscussion TopicIm Done Top .docxrock73
AUDITING
Accounts Payable
Discussion Topic
I'm Done
Top of Form
Due July 30 at 11:59 PM
Starts Jul 24, 2017 1:00 AM
Bottom of Form
Do you think accounts payable confirmation can be useful to the auditor? How? What are the limitations of accounts payable confirmation? What are some alternatives to accounts payable confirmation?
Replies
1
The confirmation of accounts payable is not a generally accepted auditing procedure. The auditor is required to obtain confirmation of accounts receivable only. The evidence supporting accounts payable, such as vendors' invoices and statements, is produced by outside sources. Determining that all payables are recorded is the primary objective of the accounts payable audit. It follows that confirmations are very useful in supplying supporting evidence for receivables but that auditing procedures other than confirmation are required to verify that all payables are recorded. The selection of accounts payable for confirmation would be from the following groups: (1) large accounts including important suppliers even though the account balance is small at balance sheet date; (2) accounts for which monthly statements are unavailable; (3) accounts with unusual transactions; and (4) accounts with zero balances that had substantial activity earlier in the year.
The main limitation of accounts payable confirmation is that it does not prove the completeness of recorded accounts payable. The accounts payable confirmation procedures are not always used because reliable externally generated evidence supporting accounts payable balances are generally available for audit inspection on the premises of client. Some auditors believe that it is not required to confirm accounts payable because the search for unrecorded liabilities is the basic means of testing for completeness of accounts payable.
The alternative procedures are generally performed for non replies of accounts payable confirmations and or selected unconfirmed accounts. This includes examination of unpaid invoices, receiving reports and bills supporting the recorded balances. The examination of vendor statement dated near the balance sheet date can also be made. The statement balances shall be reconciled to the balance in client account. The subsequent payment of liability shall be vouched. The invoices from few selected vendors for the purchase of goods and services after balance sheet date shall be inspected. It shall be determined whether invoices show an amount that was owed as on balance sheet date. Generally alternative procedures on non replies are not required because the search for unrecorded liabilities compensates for such procedures. The main benefit of this alternative procedure is that it provides 100% confirmation about the existence of accounts payable. The limitation is that this process is quite time taking and wastes auditor’s precious time. It is not very result oriented because performing basic or alternative audit procedures for acco ...
This document provides an overview of auditing and assurance services. It defines auditing and distinguishes it from accounting. It describes different types of audits, the need for auditing, and the framework of auditing. It discusses the benefits of financial statement audits, limitations of external audits, and the development of auditing over time. It also covers topics like the principal-agent relationship in auditing, major corporate accounting crises, roles of auditors and users, requirements for becoming an approved company auditor in Malaysia, and the Sarbanes-Oxley Act passed after the Enron scandal.
In this presentation, the topics covers are Audit Reports, Audit Certificate, Qualification to become an Auditor, Disclaimers, Adverse Opinion & CARO 2020
This document discusses various types of audits including statutory audit, government audit, private audit, internal audit, external audit, continuous audit, interim audit, balance sheet audit, occasional audit, complete audit, partial audit, cash audit, special audit, operational audit, proprietary audit, efficiency audit, tax audit, management audit, cost audit, social audit, classification audit, bank audit, forensic audit, and human resource audit. It provides definitions and objectives for each type of audit. Key points include that statutory audit is compulsory under law, government audit audits government entities, internal audit is conducted by organization staff, and external audit is an independent examination of financial statements.
Accounting is the process of recording, classifying, selecting, verifying, and communicating financial information about an entity to interested parties. It provides key financial information to both internal and external parties through financial statements. The four main financial statements are the balance sheet, income statement, statement of cash flows, and statement of retained earnings. Accounting uses a double-entry system to ensure the equality of debits and credits in financial transactions, and follows basic accounting principles. Errors in the trial balance can occur due to incorrect recording or omission of transactions.
Financial statements are prepared by a company's management to provide information on financial performance and position to outside users. They generally include a balance sheet, income statement, statement of cash flows, and statement of owner's equity. Financial statement analysis involves reviewing these statements to evaluate a company's risks, performance, financial health and future prospects. The statements provide recorded facts based on accounting records and conventions but also involve some personal judgment in their preparation.
The document provides an overview of regulation and legal matters related to advanced audit and assurance. It discusses the definition and need for assurance regarding financial and operational information. The key elements of an assurance engagement are identified as having a three party relationship, appropriate subject matter, suitable criteria, sufficient evidence, and a written report. Auditing is defined as the independent examination and expression of an opinion on financial statements. Auditor independence and professional skepticism are important concepts. The expectation gap in auditing and ways to bridge it, such as through education, are also examined.
This document provides an overview of auditing, including:
1. It describes the evolution of auditing from early "vouching audits" where auditors checked all transactions, to modern "system based audits" where auditors rely on internal controls and sample transactions due to increased volume.
2. It defines auditing as an independent examination of financial records and statements to determine if proper accounting practices were followed and financial statements accurately portray the entity's financial position.
3. It discusses the objectives, duties, and rights of auditors, as well as the parties that benefit from audited financial statements such as creditors, customers, bankers, and shareholders.
This document provides definitions and explanations of key accounting terms used in financial audits and accounting. It defines accounting as the systematic recording, reporting, and analysis of financial transactions of a business. It explains key terms like balance sheet, asset, income statement, cash flow statement, accounting methods, accounts payable, and accounts receivable. It also discusses the purpose of auditing financial statements, which is to provide accountability and reliability to stakeholders by expressing an opinion on whether financial statements are fairly presented.
This document provides an introduction to basic accounting concepts. It begins by defining key terms like assets, liabilities, capital, and accounting periods. It then explains important accounting principles and financial statements, including accrual accounting, accounts receivable/payable, and the balance sheet, income statement, and statement of cash flows. The overall purpose is to familiarize readers with fundamental accounting vocabulary and practices.
This document provides an overview of audit and assurance from Amirus Salat, a professor of accounting and information systems. It discusses the Enron scandal and how it impacted auditing standards. It defines auditing and the objective to provide an independent opinion on whether financial statements are fairly presented. The document outlines the roles and responsibilities of management, auditors, and users in an audit. It also distinguishes between different types of audits and degrees in accounting.
- Private and public limited companies in India must undergo annual audits of their financial statements by a chartered accountant. This process ensures compliance with legal requirements and proper accounting practices.
- The statutory duties of an auditor include giving an independent opinion on the accuracy of the company's financial statements and assessing if they were prepared according to accounting standards. The auditor must also check for compliance with relevant laws.
- Company directors are responsible for preparing accurate financial statements according to International Financial Reporting Standards and for making sure proper accounting records are maintained. They must also safeguard company assets and take steps to prevent fraud.
- Regular audits provide several advantages like ensuring compliance, improving business systems, enhancing credibility with stakeholders, detecting
This document provides an overview of auditing and assurance services. It defines auditing as a systematic process of objectively obtaining and evaluating evidence to ascertain the degree of correspondence between assertions and established criteria. The key relationships are discussed between assurance services, attestation engagements, and auditing, with auditing focused specifically on financial statements. The roles and responsibilities outlined in the Sarbanes-Oxley Act are summarized, including management's responsibility for financial reporting and the prohibitions on certain client services. The types of audits, auditors, and organization of the accounting profession are also briefly described.
The document discusses the concept of a "true and fair view" in financial accounting. It explains that a true and fair view is an idealistic aim that requires judgment, though there is no precise definition. It also outlines some of the attributes and conditions that could indicate a true and fair view, such as accurate and complete records, adherence to accounting principles and standards, and following legal requirements. The document notes that concepts like going concern, consistency, and accruals help ensure information is presented accurately and consistently to support the true and fair view expression.
Financial statements are reports prepared by a company's management to present the company's financial performance and position at a point in time. The four main financial statements are the balance sheet, income statement, statement of cash flows, and statement of changes in equity. These statements provide important information to both internal and external users of the company's financial reports.
The document discusses various accounting concepts and principles. It defines accounting concepts as basic rules, assumptions, and principles that act as standards for recording business transactions and maintaining books of accounts. It describes key concepts like business entity, money measurement, going concern, accounting period, cost, dual aspect, matching, realization, and accrual. It also discusses accounting conventions like consistency, conservatism, materiality, and full disclosure. Finally, it lists important accounting principles like accrual, consistency, conservatism, going concern, matching, and full disclosure.
This document provides an introduction to accounting. It defines accounting as identifying, measuring, and communicating economic information to allow for informed decisions. The purpose of accounting is to provide standard financial information to assess profit/loss, asset value, cash flows, debts owed/due, and financial health. There are two main branches - financial accounting which records transactions and prepares financial statements, and management accounting which provides internal information to aid decision making. Key users of accounting information and their needs are also outlined.
The document discusses key accounting concepts and principles. It defines accounting as identifying, measuring, recording and communicating financial information. The main components of the accounting process are recording transactions, summarizing data, reporting to stakeholders, and analyzing results. Accounting serves both internal users like management and owners as well as external users like investors, lenders, suppliers, customers, tax authorities, auditors, and the public. Accounting concepts provide fundamental rules and assumptions for preparing financial statements according to standards.
AUDITING Accounts PayableDiscussion TopicIm Done Top .docxrock73
AUDITING
Accounts Payable
Discussion Topic
I'm Done
Top of Form
Due July 30 at 11:59 PM
Starts Jul 24, 2017 1:00 AM
Bottom of Form
Do you think accounts payable confirmation can be useful to the auditor? How? What are the limitations of accounts payable confirmation? What are some alternatives to accounts payable confirmation?
Replies
1
The confirmation of accounts payable is not a generally accepted auditing procedure. The auditor is required to obtain confirmation of accounts receivable only. The evidence supporting accounts payable, such as vendors' invoices and statements, is produced by outside sources. Determining that all payables are recorded is the primary objective of the accounts payable audit. It follows that confirmations are very useful in supplying supporting evidence for receivables but that auditing procedures other than confirmation are required to verify that all payables are recorded. The selection of accounts payable for confirmation would be from the following groups: (1) large accounts including important suppliers even though the account balance is small at balance sheet date; (2) accounts for which monthly statements are unavailable; (3) accounts with unusual transactions; and (4) accounts with zero balances that had substantial activity earlier in the year.
The main limitation of accounts payable confirmation is that it does not prove the completeness of recorded accounts payable. The accounts payable confirmation procedures are not always used because reliable externally generated evidence supporting accounts payable balances are generally available for audit inspection on the premises of client. Some auditors believe that it is not required to confirm accounts payable because the search for unrecorded liabilities is the basic means of testing for completeness of accounts payable.
The alternative procedures are generally performed for non replies of accounts payable confirmations and or selected unconfirmed accounts. This includes examination of unpaid invoices, receiving reports and bills supporting the recorded balances. The examination of vendor statement dated near the balance sheet date can also be made. The statement balances shall be reconciled to the balance in client account. The subsequent payment of liability shall be vouched. The invoices from few selected vendors for the purchase of goods and services after balance sheet date shall be inspected. It shall be determined whether invoices show an amount that was owed as on balance sheet date. Generally alternative procedures on non replies are not required because the search for unrecorded liabilities compensates for such procedures. The main benefit of this alternative procedure is that it provides 100% confirmation about the existence of accounts payable. The limitation is that this process is quite time taking and wastes auditor’s precious time. It is not very result oriented because performing basic or alternative audit procedures for acco ...
This document provides an overview of auditing and assurance services. It defines auditing and distinguishes it from accounting. It describes different types of audits, the need for auditing, and the framework of auditing. It discusses the benefits of financial statement audits, limitations of external audits, and the development of auditing over time. It also covers topics like the principal-agent relationship in auditing, major corporate accounting crises, roles of auditors and users, requirements for becoming an approved company auditor in Malaysia, and the Sarbanes-Oxley Act passed after the Enron scandal.
In this presentation, the topics covers are Audit Reports, Audit Certificate, Qualification to become an Auditor, Disclaimers, Adverse Opinion & CARO 2020
This document discusses various types of audits including statutory audit, government audit, private audit, internal audit, external audit, continuous audit, interim audit, balance sheet audit, occasional audit, complete audit, partial audit, cash audit, special audit, operational audit, proprietary audit, efficiency audit, tax audit, management audit, cost audit, social audit, classification audit, bank audit, forensic audit, and human resource audit. It provides definitions and objectives for each type of audit. Key points include that statutory audit is compulsory under law, government audit audits government entities, internal audit is conducted by organization staff, and external audit is an independent examination of financial statements.
Accounting is the process of recording, classifying, selecting, verifying, and communicating financial information about an entity to interested parties. It provides key financial information to both internal and external parties through financial statements. The four main financial statements are the balance sheet, income statement, statement of cash flows, and statement of retained earnings. Accounting uses a double-entry system to ensure the equality of debits and credits in financial transactions, and follows basic accounting principles. Errors in the trial balance can occur due to incorrect recording or omission of transactions.
Financial statements are prepared by a company's management to provide information on financial performance and position to outside users. They generally include a balance sheet, income statement, statement of cash flows, and statement of owner's equity. Financial statement analysis involves reviewing these statements to evaluate a company's risks, performance, financial health and future prospects. The statements provide recorded facts based on accounting records and conventions but also involve some personal judgment in their preparation.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
বাংলাদেশের অর্থনৈতিক সমীক্ষা ২০২৪ [Bangladesh Economic Review 2024 Bangla.pdf] কম্পিউটার , ট্যাব ও স্মার্ট ফোন ভার্সন সহ সম্পূর্ণ বাংলা ই-বুক বা pdf বই " সুচিপত্র ...বুকমার্ক মেনু 🔖 ও হাইপার লিংক মেনু 📝👆 যুক্ত ..
আমাদের সবার জন্য খুব খুব গুরুত্বপূর্ণ একটি বই ..বিসিএস, ব্যাংক, ইউনিভার্সিটি ভর্তি ও যে কোন প্রতিযোগিতা মূলক পরীক্ষার জন্য এর খুব ইম্পরট্যান্ট একটি বিষয় ...তাছাড়া বাংলাদেশের সাম্প্রতিক যে কোন ডাটা বা তথ্য এই বইতে পাবেন ...
তাই একজন নাগরিক হিসাবে এই তথ্য গুলো আপনার জানা প্রয়োজন ...।
বিসিএস ও ব্যাংক এর লিখিত পরীক্ষা ...+এছাড়া মাধ্যমিক ও উচ্চমাধ্যমিকের স্টুডেন্টদের জন্য অনেক কাজে আসবে ...
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
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A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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2. 1-2
Agenda:
• Introduction of Auditing.
• Definition of Audit.
• Objective of Audit.
A. Primary Objectives.
B. Secondary Objectives.
C. Special Objectives.
• ADVANTAGES OF AUDITING.
A. Advantages to the Business.
B. Advantages to the owners.
C. Advantages to the government or State.
D. Advantages to general public.
3. 1-3
Auditing Introduction
• The audit is an intelligent and critical examination of the books of accounts of the business.
• Auditing is done by the independent person or body of persons qualified for the job with the
help of statements, papers, information and comments received from the authorities so that
the examiner can confirm the authenticity of financial accounts prepared for a fixed term and
report that:
• The balance sheet exhibits an accurate and fair view of the state of affairs of concern;
• The profit and loss accounts reveal the right and balanced view of the profit and loss for the
financial period;
• The accounts have been prepared in conformity with the law.
• Thus, it will be seen that the duty of an auditor is much more than a mere comparison of the
balance sheet and accounts with the books.
• But, apart from doing this, he has to satisfy himself according to his information and the
explanations given to him.
4. 1-4
Definition of Auditing
• Auditing is an examination of the accounting records by a qualified and independent
person on the basis of the proper evidence, to express his opinion as to the truth and
fairness of financial statements.
According to R.K. Mautz
• “Auditing is concerned with the verification of accounting data with determining the
accuracy and reliability of accounting statements and records.”
5. (A). PRIMARY OBJECTIVES
Accounting Polices
• The main object of auditing is to examine the accounting policies. Accounting policies are
needed for preparing the accounting records.
Fairness of Statements
• One of the most important objectives of audit is to determine the fairness of statements.
Auditor examine the books of accounts to know the reliability of financial statements.
Prescribed Laws
• Another object of audit is to check that prescribed laws were followed or not in preparation
financial statements. In Pakistan companies are governed under companies‟ Act 2017. So
auditor verify whether the requirements of act have been compiled or not.
Independent Opinion
• Expression of independent opinion about financial statement is the main objective of auditing.
After complete scrutiny auditor give his opinion in the form of report about fairness of financial
statements.
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6. B. SECONDARY OBJECTIVES
Detection of Errors
• Unintentional mistakes in accounting records and financial statements are called financial
errors. Errors are generally committed unintentionally. The objective of auditing is to detect
errors.
Detection of Frauds
• Intentional mistakes in accounting records and financial statements are called fraud. Frauds
are committed with intention to deceive mislead and conceal the truth. Objective of auditing
is to detect the fraud.
Prevention of Errors and Frauds
• Objective of auditing is not only to detect the errors and frauds but also to prevent them. It
is not possible to prevent the errors and frauds fully but these can be minimized through
efficient and effective internal control.
1-6
7. C.SPECIAL OBJECTIVES
Satisfaction of Tax Authorities
• The objective of audit is to satisfy tax authorities. The audited accounts are reliable. The
business concern can settle the tax matters easily.
Loan Facilities
• The objective of audit may be providing loan facilities to the organization. Banks rely on
audited accounts. On the basis of audited accounts the management can get loan from
banks easily.
To Attract Investor
• The object of audit is to attract investors. The audited accounts are more reliable.
Investors can make investment by relying over audited accounts.
Purchase Consideration
• The object of audit may be to determine the real value of business. Through audited
accounts the fair value of assets and liabilities can be determined.
Variation in Profit
• The object of audit may be to check the variation in profit. By auditing the auditor can
analyse the fluctuation in profit.
1-7
8. C.SPECIAL OBJECTIVES (Continue)
Proper Supervision
• The object of audit may be the proper supervision of business. Sometimes owner cannot
look after the business personally. Audit acts as a check on employees and it saves the
owner from losses.
Prevention of Disputes among Partners
• Audited accounts are considered more reliable. Where a partnership regularly gets its
accounts audited, there are less chances of misunderstanding and distrust among the
partners.
Management Audit
• It is a voluntary audit. The purpose of management audit is to assess the performance,
review the organizational structure and suggest best course of action.
Social Audit
• The purpose of social audit is to measure social performance of business. The society is
concerned with the protection of natural environment.
1-8
9. ADVANTAGES OF AUDITING
A. Advantages to the Business
Moral Check
• The fear of detection of errors and frauds acts as a moral check on the employees. Due to
this check the employees become regular and more careful in their work.
Detection of errors and frauds
• Errors and frauds if any, committed by employees of the business in accounting records
can be detected by auditing.
Loan facilities
• Business can easily obtain loan with the help of audited accounts because audited
accounts are accepted by the lenders for granting loan
Business Purchase Price
• If a running business is to be sold, purchase consideration ( Price) can easily be
determined (Calculate) on the basis of audited accounts.
1-9
10. A. Advantages to the Business (Continue)
Tax Payments
• If accounts are audited then these are easily accepted by the tax department for the
assessment of taxes and there is no need for further inquiry
Settlements of Disputes
• If any dispute arise among directors, partners or shareholders regarding share of profit etc.
it can easily be settled through the audited accounts.
Settlement of Insurance Claims
• In case of loss or damage to business property due to fire, earthquake, theft etc. the
audited accounts facilitate to settle the insurance claim.
Correct Information about Business
• Due to fear of audit, the work of accounting always remains up to date and correct
information is given to the members in time.
1-10
11. B. ADVANTAGES OF AUDIT FOR OWNERS
Owner’s satisfaction:
• In the presence of audit, the owners feel satisfaction about business operation and
working.
Helpful for partners:
• The partners can rely on the audited accounts. The audited accounts help the partners to
adjust their capital and determine the value of goodwill at the time of admission,
retirement and death of a partner.
Shareholders Protection:
• Audit is the only way to save shareholders from exploitation The shareholders can watch
business through auditor. The auditor takes utmost care to protect their rights.
Deceased Estate:
• If the accounts are audited then the family of deceased person can rely on these
accounts for distributing the estate.
1-11
12. ADVANTAGES OF AUDIT FOR OWNERS (Continue)
Fluctuation in Profit
• If accounts are audited then owners can easily know that what are the reasons for
fluctuation of profit.
Making of Budget
• If accounts are audited then owners can easily know the true and fare view about their
business activities and they can make the budget for next year.
Valuable Advice
• The auditor is an expert in accounting problems. The owners of the business can get
valuable pieces of advice to solve the accounting problems.
1-12
13. C. ADVANTAGES TO GOVERNMENT
1-13
Easy assessment of Taxes:
• In the presence of audited accounts the tax authorities can easily assess (calculate) the
income tax, sales tax and pass the assessment order without further investigation.
Early recoveries of Taxes:
• The assessment orders can be made by tax authorities at early date which leads to early
recovery of taxes.
Economic Progress:
• The government can check the economic progress of the various companies by going through
the audited accounts. If these companies are earning reasonable profit, it shows a good sign
for the economy.
Privatization:
• If some industries under government control are running in loss, the government may privatize
these sick industrial units. The sale price of these industrial units is settled on the basis of
audited accounts.
Purchase of Private Business Units:
• If any private business unit is not working for the welfare of the general public. The
government may take over such business units. The purchase price of these units is settled
on the basis of audited accounts.
14. ADVANTAGES TO GENERAL PUBIC AND OTHERS
No lender’s Loss:
• There may be no loss to lenders because banks and others financial institutions get the
audited accounts before granting loan and with the help of audited accounts they can
check the trust worthiness of customers.
Better Pay:
• Audited accounts provide the true and fair view of profit, so employees can demand
higher pay.
Investor’s Satisfaction:
• The investors can easily judge the position of the company and thus make the decision
to invest in one company and not others.
Employment Opportunities:
• As organization and businesses are expanding; the need of audit is increasing, so this
field is providing more and more job opportunities to the thousands of people.
Training Facilities:
• The audit assistants and clerks work under the supervision and control of auditor. They
get trained and become human capital for the industry.
1-14