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Duties of an Auditor

DUTIES OF AN AUDITOR | PROFESSIONAL & UNDER COURT CASES DUTIES

What are Duties Of An Auditor? The auditor is responsible for detection and prevention of errors and frauds. He knows his duty to detect errors and frauds. He takes such measures to prevent errors and frauds in future. In fact, it is difficult for him to do so because officers usually commit frauds because they…

RIGHTS OF AN AUDITOR

RIGHTS OF AN AUDITOR | FUNDAMENTAL RIGHTS OF AUDITOR

What are Rights of An Auditor? The auditor cannot do anything directly for prevention of errors and frauds. He can advise his client about ways and means to prevent errors and frauds in future. The client must act upon the advice of auditor for the accuracy of accounts. The auditor can check accounts at certain…

QUALITIES OF AN AUDITOR

QUALITIES OF AN AUDITOR | PROFESSIONAL QUALITIES & PERSONAL QUALITIES

What are Qualities of An Auditor? As we know that an auditor is a watchdog means that he appointed to look after the interest of shareholders or owners of the business. A watchdog looks after the property of the owner. It is the qualities of an auditor to protect the property of the owners. He must inform…

QUALIFICATION OF AN AUDITOR

QUALIFICATION OF AN AUDITOR | DISQUALIFICATION | STATUS OF AUDITOR

What is Qualification of An Auditor? A person shall be qualified for appointment as an auditor if he is a chartered accountant within the meaning of the Chartered Accountants Ordinance 1961. He can be appointed as auditor Of (A) public limited company or (B) a private limited company which is a subsidiary to a public…

Auditor

DEFINITION OF AN AUDITOR | APPOINTMENT AND REMOVAL OF AN AUDITOR

Who is an Auditor? The division of labour has become possible due to industrial revolution. The large-scale companies were formed to do business. The capital was collected from general public through sate of shares. The shareholders were not professional managers. The need of professional management was felt to run the companies smoothly. The separation of…

VERIFICATION

VERIFICATION | DEFINITION, TECHNIQUES, OBJECTS, PROCEDURE & ADVANTAGES

What is Verification? Verification is concerned with testing the truth, Audit is incomplete without verification, An auditor can check that items appearing in the balance sheet are correct. There are many techniques that can help the auditor to verify assets and liabilities. The assets are purchased to run a business properly. The value and condition…

LEDGERS

WHAT IS LEDGERS | DIFFERENT TYPES OF AUDIT OF LEDGERS | AUDITING

What is Ledgers? Ledger is a book or place where classified, a record is maintained, The transactions relating to an account are posted from journals. When business is small one ledger is sufficient to keep a record of personal and impersonal accounts. Personal accounts relate to debtors and creditors. The’ impersonal accounts relate to assets,…

Journals

JOURNALS | DIFFERENT TYPES OF AUDIT OF JOURNALS | ACCOUNTING & AUDITING

What are Journals? The management prepares the books of accounts. : In large-scale business journal is divided into various parts. There is purchase journal for recording credit purchases. There is cash journal or cashbook for recording receipts and payments of cash. In a small business, there may be one cash journal’ for receipts and payments of…

VOUCHERS

VOUCHERS | DEFINITION, CHARACTERISTICS AND TYPES OF VOUCHERS

What are Vouchers? Vouchers are also known as Audit Evidence. Business transactions are recorded in the books of accounts on the basis of  written proof. Voucher is a piece of paper that shows the details relating to the  items appearing in accounting records. A cash memo, bill or invoice and similar other papers are considered-as…

VOUCHING

VOUCHING | DEFINITION, OBJECTIVES, TECHNIQUES AND PROCEDURE

What is Vouching? It is the essence of auditing. The auditor can examine the documents that support and confirm a transaction. There is need to test the truth of items recorded in the books of accounts. Vouching means to prove an entry in the accounting record with documentary evidence as well as to see that transaction…

DEFINITION OF FRAUD

DEFINITION OF FRAUD | MANIPULATION OF ACCOUNTS, DUTIES OF AUDITOR

Definition of Fraud? Fraud means intentional misrepresentation of financial information by one or more individuals among management, employees or third parties. It may involves (a} manipulation, falsification or alteration of records or documents (b) misappropriation of assets (c) suppression or omission of the effects of transaction from records or documents (d) recording Of transactions without…

ERROR

DEFINITION OF ERROR | CLERICAL MISTAKES, PRINCIPLE AND LOCATION

What is An Error? An error refers to unintentional mistakes in financial information, such as (a) mathematical or clerical mistakes in the underlying records and accounting data (b) oversight or misinterpretation of facts or (c) misapplication accounting policies. The accounting staff may make mistake without knowing it. The responsibility of errors lies on the head…

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