The document discusses business ethics and auditing. It defines business ethics as the examination of how people and institutions should behave in commerce. It also outlines some key principles of business ethics like avoiding exploitation of consumers and paying taxes regularly. The document then defines auditing as the inspection and verification of business accounts by an independent accountant. It discusses the objectives and types of auditing, as well as cost auditing and management auditing. Finally, it covers the meaning, rights, duties, and liabilities of an auditor.

1. BUSINESS ETHICS
AND AUDITING
SUBMITTED BY:
GAURAV MIDA
ROLL NO. 3238

2. THE MEANING OF BUSINESS ETHICS
Business Ethics can be defined as critical structured
examination of how to people and institutions should
behave in the world of commerce
Ethics is a branch of social science, it deals with the
moral principles and social values. It helps us to classify
what is good and what is bad?

3. RULES AND PRINCIPLES OF BUSINESS ETHICS
1.AVOID EXPLOITATION OF CONSUMERS- Don’t
cheat and exploit consumers by using bad business
practices such as artificial price rise etc.
2.PAY TAX REGULARLY- Pay tax and other charges
or duties to Government with honesty and regularly.
3.GET ACCOUNTS AUDITED- Now the main
priniciple of Business Ethics to discuss maintain
accurate business record, accounts and make them
available to all authorized persons.

4. MEANING OF AUDITING
The Auditing is an inspection , correction and verification
of business accounts conducted by an independent
qualify Accountant.
An Audit is an examination of an individual or Company
Tax returns to verify its accuracy. There are mainly three
types of Audit:
CORRESPONDENCE AUDIT
OFFICE AUDIT
FIELD AUDIT

5. OBJECTIVES OF AUDITING
Primary Secondary
Detection of Error Detection of Frauds
1. Error of Commission 1. Misappropriation of cash
2. Error of omission 2. Misappropriation of Goods
3. Compensating Error 3. Misuse of Accounts

6. THE OTHER TWO FIELDS OF AUDITING
COST AUDIT & MANAGEMENT AUDIT
COST AUDIT
It is an audit process for verify the cost of
manufacture or production of any article on the basis
of accounts.
In the cost audit, Auditor has to perform the
following duties -
1. Examine the correctness of cost records maintain by
the concern.
2. To report to know about operational and technical
aspects of cost.

7. MANAGEMENT AUDIT
A systematic assessment of method and policies of
organization in the management and use of
resources practical and strategic planning and
employee and organizational improvement.
This is all done by different types of Auditors.

8. AUDITOR
 Meaning- Auditor is an Accountant who conduct an audit
to verify the accuracy of the financial report and
accounting practices of business and Government.
 Auditor is an officer whose duty is to examine the accounts
of officers who have received the money from Public like
share holders and check the all records of the management.

9. RIGHTS, DUTIES AND LIABILITY
1. Right to access to Books of Accounts and
Vouchers. 255 (1)
Right to receive the information and explanations .
255(2)
Right to receive notice of General Meetings. Section
255 (6).
Right to make representations, where another
person being appointed as an Auditor. 255(3)

10. DUTIES OF AN AUDITOR 255 (4)
To give a report to a member on the accounts, Books
of Accounts, Balance Sheets and Profit and Loss
Account examined by him.
To attend those general meetings of a company
either himself or trough authorize.
To clarify receipt and payment account in the
statutory reports. (157)
To exercise reasonable care and skills.

11. LIABILITIES OF AN AUDITOR
Civil Liabilities- civil liabilities means the dispute
over losses caused to one party by acts of another.
The civil liabilities of an auditor can be for- 1.
Negligence 2. Breech of duty
Criminal Liabilities Section(260)- If Auditor fails to
comply with the requirements of section 157. 255 or
257, he shall punishable with the fine up to
100000/- and he shall also be punishable with the
imprisonment for a period of one year.

12. THANK
YOU