it is help full to understand what is actually audit.

1. Audit

2. Group Members
Vikas Upadhyay – 163
Kaushal Yadav – 172
Yemimal Bhaskaran – 176
Nikki Kayastha – 177
Nidhi Shah - 178

3. INTRODUCTION & DEFINITION
 The word audit is derived from the Latin word
“AUDIRE” which means to hear.
 An official inspection of an organizations account,
typically by an independent body.
 According to Mautz…..
“ Auditing is concerned with the verification of
auditing data, with determining the accuracy and
reliability of accounting statement and reports”.

4. Objectives of Auditing
 Primary Objective
To determine and judge the reliability of the
financial statement and the supporting accounting
records of a particular financial period is the main
purpose of the audit.
 Secondary objective
1. Detection and prevention of Errors
2. Detection and prevention of Frauds.

5. The Auditor
 Person conducting audit
 In India, under the authority of
company act, 1956 only chartered
accountant are professionally qualified
for the audit.

6. Compulsory audit
 Was introduced by the companies act, 1956.
 Duly qualified and trained in the profession.
 If a person is carrying on business/
Profession and his total sales, turnover or
receipts from such business or profession
exceeds Rs 60 Lacs/ Rs 15Lacs respectively
during the previous year then he is required
to get the accounts audited by a Chartered
Accountant.

7. Internal Audit
 It is independent appraisal of operation and
records of the company.
 The purpose is to detect errors and frauds that are
already committed.
 It requires separate staff employed only for this
purpose.
 The Internal auditor has to report periodically about
various inefficiencies and suggest improvements.
 It begins when the accounting process ends.

8. Cost Audit
 The verification of correctness of cost
accounts and of adherences to the
cost accounting plan.
 It reflects a true and fair view of the
cost of production, manufacture
processing marketing of the product
under audit.

9. Objectives of cost audit
 To establish the correctness of cost records and
accounts.
 Ensure adherence to the cost accounting plan.
 Detection of errors and frauds.
 To check wastage of materials and labour.
 To examine whether the cost statements present a
true and fair view of the cost information.
 Ensuring optimum utilization of human, physical
and financial resources of the company.
 Detection and correction of abnormal losses.

10. Efficiency audit
 Efficiency audit is related to that whether
corporate plans are effectively executed.
 In this, auditor investigates the reasons of
variances in actual performance and
planned performance.
 It also investigates that capital resources
of company are properly utilized or not.

11. Management Audit
 Is a critical evaluation of business
policies , procedures, efficiency and
effectiveness.
 It is a systematic examination of
decisions and actions of the
management to analyze the
performance.
 Concerned with the review of past
performance.

12. Objectives of management
audit
 Appraise the managerial performance
at all levels.
 Improve the organizational efficiency.
 Enhance operational profitability.
 Reviews the companies organizational
structure.

14. Strategic Assessment of cost
and Managerial Performances
 Cost Records And Cost Accounting
Principles
 GACAP(Generally Accepted Cost
Accounting Principles)
 Institute Of Cost & Work Accountants In
India
 Cost Accounting Standard Board
 Strategic Cost Management Or Cost
Management Strategy
 Management strategy cost
 Evaluating & Improving Cost In

15. Strategic Cost Management
steps