The relationship of the internal auditor and statutory auditor can be summed up as follows: – 1. As per manufacturing and other companies order 1988 issued under section 227 of the companies’ act the statutory auditor has to comment upon the effectiveness and suitability of internal audit system laid down be the management. 2. To [...]

Internal audit is an important part of the internal control system. Guidelines issued by the institute of chartered accountants of India on internal auditing define it as “an independent appraisal involving specialized application of the techniques of auditing in accordance with the specific need of the enterprise.” The institute of internal auditor USA defines internal [...]

Internal audit system is a critical evaluation of the functioning of various departments of enterprise. Internal audit implies an audit of books of account by the employees of the organization itself. Internal audit is done by separate department known as internal audit department. Its staff may or may not have required professional qualifications. An internal [...]

The main object of audit is to find out whether the financial statements prepared by a company show the true and fair view of the financial state of affairs of a company and if not then in what respect they are not showing. It will be said that the financial statements and the books of [...]

Following special points have be considered while doing the audit of an insurance company: GENERAL • Auditor first of all should study the relevant provisions of the insurance act governing the insurance company. • Auditor should evaluate the internal control system of the entity. He should decide that up to what extent he can rely [...]

Auditor should take following steps while doing the audit of an educational institution. 1. APPOINTMENT He should check that his appointment is in order and should receive the letter of appointment. 2. RULES He should study the legislation and rules governing the institution care fully. These can be had from the charter deeds and minute [...]

Management audit is a comprehensive and complete examination of all managerial functions and the effective use of their total resources in achieving the goals of an organization. According to Taylor and Perry “Management auditing is a method to evaluate the efficiency of management at all levels throughout the organization in order to ascertain whether sound [...]