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 [...]

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 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 [...]

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 [...]