In an EDP (ELECTRONIC DATA PROCISSING) audit the auditor may not vouch each and every transaction but he must perform overall analytical checking to ensure that the financial records show true and fair view of the business entity. Audit process in such a system may involve following steps: Evaluation of the internal control system – [...]

Following are the main points of difference between internal audit and statutory audit: 1. Appointment – The management of the organization makes the appointment of an internal auditor. The statutory auditor is appointed by different authorities. First statutory auditors are appointed by the shareholders in the annual general meeting. 2. Qualification – Qualifications of the [...]

Internal check system is such a system in which duties of different assistants are divided and allocated to each other in such a way that their work is supplementary and dependent upon each other. By this system the work is automatically checked as it is done. Since one particular job is not assigned to any [...]

Frauds is an act done intentionally to get an advantage or gain. Errors are unintentional, whereas frauds are intentional errors. Type of frauds – following type of frauds can occur in the books of account: • Misappropriation of goods: – When any employee or any outsider of the company steels the goods (raw material, semi [...]

There are two types of object of auditing. 1. The main objects and 2. The secondary or subsidiary object. The Main object- the main object of auditing is to help the auditor to form an opinion as to whether the books of account and the financial statements show true and fair view of the business. [...]

Account Auditing in India is known as an examination of financial statements i.e. balance sheet and profit & loss a/c, books of account and related vouchers so as to help the auditor to form an option as to whether the financial statements show true and fair view of the business affairs or not, and if [...]

A private limited company has two types of share capital: • Equity share capital • Preference share capital EQUITY SHARE CAPITAL This type of share capital is that part of capital that is not a preferential. In other words it is the basic kind of capital or an ordinary share capital. PREFERENTAL SHARE CAPITAL This [...]

Following special points must be considered while doing the audit of a hospital: GENERAL • The nature of the entity must be understood. It may be a sole proprietorship a partnership firm or a company. Auditor should make his audit programmed accordingly. • Auditor should study the minutes of the meetings of the board of [...]

1. Establishing the objects of organization- The first job in the management audit is to identify the objectives of the business organization. 2. Evaluation of the organization structure- Next step in the management audit is to evaluate the organization structure. To find out that whether the structure enough to achieve the goals of the organizations. [...]