Title Audit Sem 5 APC Notes New.pdf ✅

ABHISHEK PANDEY CLASSES 1 Auditing & Assurance | APC | SEM 5 We Provide Classes For BCom All Sem In Search Of Quality, You Found APC Contents BASIC CONCEPT ............................................................................................................. 3 UNIT: 1 Concept, Need And Purpose Of Audit - 10 Marks ...................8 UNIT 2 : AUDITING PROCEDURES AND TECHNIQUES- 15 Marks......24 UNIT -3 Audit Risk And Internal Control System - 10 Marks ..............46 UNIT - 4 vouching - 10 mark ..............................................................54 UNIT 5 COMPANY AUDIT 15 Marks...................................................67 UNIT 6 - Audit Report And Certificate Certificate. 10 Marks............ 101 UNIT 7 Other Trust Areas 10 Marks ................................................. 113
ABHISHEK PANDEY CLASSES 2 Auditing & Assurance | APC | SEM 5 We Provide Classes For BCom All Sem In Search Of Quality, You Found APC Important Point’s Or Notes
ABHISHEK PANDEY CLASSES 3 Auditing & Assurance | APC | SEM 5 We Provide Classes For BCom All Sem In Search Of Quality, You Found APC BASIC CONCEPT 1. Origin: Audit has been derived from the Latin word Audire, which means to hear. 2. Definition of Audit: Audit means an independent examination of financial information of an entity, whether profit-oriented or not, irrespective of its size and legal form, and such an examination is conducted with a view to express an opinion thereon. 3. Auditor: The person conducting the audit is known as the auditor. 4. Myths vs Reality 1. Myths 2. Reality (i)The primary objective of auditors is to detect all frauds & errors The primary objective of auditors is to comment on whether financial statements are showing a true & fair view (fraud detection is not the main focus). (ii) Auditor will prepare books of accounts of his client. Auditor only checks books of accounts prepared by the client. (iii) Auditor will set up the internal controls of the client. Auditor only checks whether internal controls of the client are strong or weak. (iv) Auditors will act as per the wishes of the client. Auditors conduct audits independently without following the client’s directions. (v) Since the auditor is independent, he can do whatever he feels and conduct the audit in any manner. He has to conduct the audit by complying with Standards on Auditing and the Regulatory framework. (vi) Since it's not the auditor's duty to detect all frauds & errors, he can never be held liable for undetected frauds & errors. He is liable if he has not exercised due skill & care in auditing. (vii) Auditor's assurance is a guarantee. Auditor's assurance is a reasonable assurance, which provides a high degree of confidence but not an absolute assurance (guarantee).