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Auditing: Principles and Techniques

Name: Auditing: Principles and Techniques
Author: Sanjib Kumar Basu
ISBN: 9789332501720

by Sanjib Kumar Basu

September 2006

Beginner to intermediate

628 pages

19h 49m

English

Pearson India

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Cover
Title Page
Contents
Preface
Chapter 1. Nature of Auditing
1.1 Introduction1.2 Origin of the Word ‘Audit’1.3 Early History of Audit1.4 Auditing Defined1.5 Essential Features of Auditing1.6 Why Is There a Need for an Audit?1.7 Objective of an Audit1.8 Errors and Frauds in Accounting1.9 Role of Auditors in Detecting Errors and Frauds1.10 Relation between Book-keeping, Accountancy and Auditing1.11 Basic Principles Governing an Audit1.12 Postulates of Auditng1.13 Scope and Procedures of Audit1.14 Changes in the Concept of Auditing1.15 Social Objectives of Audit1.16 Advantages of Auditing1.17 Limitations of Auditing1.18 Qualities of an Auditor1.19 Auditing and Other ServicesPoints to PonderReview Questions
Chapter 2. Classification of Auditing
2.1 Introduction2.2 Classification of Audit2.3 Classification on the Basis of Organisation2.4 Classification on the Basis of Function2.5 Classification on the Basis of Practical Approach2.6 Classification on the Basis of Audit DimensionPoints to PonderReview Questions
Chapter 3. Techniques and Procedures of Auditing
3.1 Introduction3.2 Preparatory Steps before Commencement of Audit3.3 Preparation by the Auditor3.4 Principles and Techniques of Auditing3.5 Procedures Followed in Course of AuditPoints to PonderReview Questions
Chapter 4. Internal Control, Internal Check and Internal Audit
4.1 Introduction4.2 Internal Control4.3 Internal Check4.4 Internal Audit4.5 Auditor’s Independence4.6 Distinction between Internal Control and Internal Audit4.7 Distinction between Internal Check, Internal Audit and Internal ControlPoints to PonderReview Questions
Chapter 5. Vouching
5.1 Introduction5.2 Concept of Vouching5.3 Objectives of Vouching5.4 Importance of Vouching5.5 Vouching and Verification5.6 Vouching and Routine Checking5.7 Concept of Voucher5.8 Internal and External Evidence5.9 General Principles of Vouching5.10 Teeming and Lading: A Challenge to Vouching5.11 Vouching of Different Types of TransactionsPoints to PonderReview Questions
Chapter 6. Verification and Valuation of Assets and Liabilities
6.1 Introduction6.2 Meaning of Verification of Assets6.3 Meaning of Valuation of Assets6.4 Difference between Verification and Valuation6.5 Importance of Verification of Assets6.6 Importance of Valuation of Assets6.7 General Principles for Verification and Valuation of Assets6.8 Problems in Verification6.9 Problems in Valuation6.10 Window Dressing—A Challenge to Verification6.11 Verification and Valuation of Assets6.12 Verification and Valuation of Intangible Assets6.13 Verification and Valuation of Fixed Assets6.14 Verification and Valuation of Investments6.15 Verification and Valuation of Current Assets6.16 Verification and Valuation of Fictitious Assets6.17 Verification and Valuation of Contingent Assets6.18 Verification and Valuation of Liabilities6.19 Verification and Valuation of Fixed or Long Term Liabilities6.20 Verification and Valuation of Current Liabilities6.21 Verification and Valuation of Contingent Liabilities6.22 Events Occurring after the Balance Sheet Date6.23 Prior Period and Extraordinary Items and Changes in Accounting PoliciesPoints to PonderReview Questions

Chapter 7. Depreciation
7.1 Definition of Depreciation7.2 Purposes of Providing Depreciation7.3 Causes of Depreciation7.4 Basis of Charging Depreciation7.5 Quantum of Depreciation7.6 Distinction between Depreciation and Amortisation7.7 Different Methods of Depreciation7.8 Depreciation Accounting as per AS-67.9 Accounting Disclosure Requirement7.10 Legal Necessity of Provision for Depreciation7.11 Provision for Depreciation for Past Years7.12 Depreciation on Low Value Items7.13 Depreciation on Wasting Assets7.14 Change in the Method of Depreciation7.15 Auditor’s Duty as Regards Depreciation7.16 Legal Views as Regards DepreciationPoints to PonderReview Questions
Chapter 8. Reserves and Provisions
8.1 Concept of Reserves8.2 Concept of Provisions8.3 Difference between Reserves and Provisions8.4 Classification of ReservesPoints to PonderReview Questions
Chapter 9. Company Audit
9.1 Introduction9.2 Preliminaries before Commencement of Company Audit9.3 Audit of Share Capital Transactions9.4 Audit of Debentures9.5 Audit of Holding Company9.6 Audit of Pre-incorporation Profit9.7 Specific Provisions for Accounts in the Companies Act9.8 Payment of Interest Out of Capital9.9 Special Requirements of Company Audit9.10 Company Auditor9.11 Special Auditor9.12 Branch Auditor9.13 Joint Auditor9.14 Legal Views on Auditor’s LiabilityPoints to PonderReview QuestionsAnnexure
Chapter 10. Divisible Profits and Dividends
10.1 Meaning of Divisible Profit10.2 Meaning of Dividend10.3 Concept of Profit10.4 Profit vs Divisible Profit10.5 Principal Determinants of Divisible Profit10.6 Companies Act Relating to Payment of Dividend10.7 Companies Act Regarding Unpaid and Unclaimed Dividend10.8 Payment of Dividend Out of Capital Profit10.9 Payment of Dividend Out of Capital10.10 General Guidelines for Distribution of Dividend10.11 Articles of Association Regarding Dividend10.12 Auditor’s Duty as Regards Payment of Dividend10.13 Payment of Interim Dividend and the Role of Auditors10.14 Legal Views as Regards DividendPoints to PonderReview Questions
Chapter 11. Audit Report and Certificate
11.1 Definition of Report11.2 Definition of Audit Report11.3 Value of Audit Report11.4 Essentials of Good Audit Report11.5 Scope of Audit Report11.6 Signing of the Audit Report11.7 Contents of Audit Report11.8 Companies (Auditor’s Report) Order, 200311.9 Forms of Audit Report11.10 Audit Report and Audit Certificate11.11 Types of Auditor’s Report11.12 Qualified Audit Report11.13 Types of Audit Certificate11.14 Auditor’s Report and ‘True and Fair View’11.15 Specimen of Clean Audit Report11.16 Specimen of Qualified Audit Report11.17 Legal Views as Regards Audit ReportPoints to PonderReview Questions
Chapter 12. Audit of Banks
12.1 Introduction12.2 An Overview of Banking Institutions in India12.3 Legislation Relevant to Audit of Banks12.4 Approach to Bank Audit12.5 Stages in Audit of Banks12.6 Audit Procedures12.7 Advances12.8 Income Recognition12.9 Bank Audit ReportPoints to PonderReview QuestionsAnnexure
Chapter 13. Audit of Insurance Companies
13.1 Audit of Companies Carrying on Life Insurance Business13.2 Audit of Companies Carrying on General Insurance Business13.3 Applicability of Accounting Standards13.4 Books and Registers to be Maintained13.5 Submission of Reports and Returns13.6 Audit of Accounts13.7 Preparation for the Audit13.8 Internal ControlsPoints to PonderReview QuestionsAnnexure
Chapter 14. Investigation
14.1 Introduction14.2 Definition14.3 Objectives or Purposes of Investigation14.4 Features of Investigation14.5 Terms of Reference14.6 Working Methods14.7 Duties of an Investigator14.8 Investigation Report14.9 Qualities of an Investigator14.10 Difference between Investigation and Auditing14.11 Types of Investigations14.12 Legal Views as Regards InvestigationPoints to PonderReview Questions
Chapter 15. New Areas of Auditing
15.1 Introduction15.2 Cost Audit15.3 Management Audit15.4 Human Resource Audit15.5 Operational Audit15.6 Forecast Audit15.7 Social Audit15.8 Tax Audit15.9 Forensic Audit15.10 Environmental (Green) Audit15.11 Audit Committee15.12 Accounting Standards15.13 Auditing and Assurance StandardsPoints to PonderReview Questions
Chapter 16. Professional Ethics and Misconduct
16.1 Introduction16.2 Meaning of Professional Ethics16.3 Meaning of Professional Misconduct16.4 Schedules to the Chartered Accountants Act, 1949 Relating to Professional Misconduct16.5 Enquiry into Charges of Misconduct of Chartered AccountantsPoints to PonderReview Questions
Chapter 17. Special Audit
17.1 Introduction17.2 Audit of Charitable Societies17.3 Audit of Cinema Halls17.4 Audit of Clubs17.5 Audit of Co-operative Societies17.6 Audit of Educational Institutions17.7 Audit of Hotels17.8 Audit of Hospitals17.9 Audit of Libraries17.10 Audit of Nursing Homes17.11 Audit of Travel Agencies17.12 Audit of College Hostels17.13 Audit of Publishing Concerns17.14 Concluding RemarksPoints to PonderReview Questions
Chapter 18. Audit of Soleproprietorship and Partnership Firm
18.1 Introduction18.2 Audit of Sole-proprietorship Business18.3 Audit of Partnership Firm18.4 Salient Features of Audit of Accounts of Sole-proprietorship and Partnership Firm18.5 Rights, Duties and Liabilities of Auditor of a Sole-proprietorship or Partnership Firm18.6 Position of Auditor of a Soleproprietorship or Partnership Firm18.7 Reports on Accounts of Individual or Partnership Firm18.8 Comparison of Company Audit with the Audit of Sole-proprietorship and Partnership Firm18.9 Legal Views as Regards Audit of Individual and FirmPoints to PonderReview Questions
Chapter 19. Audit of the Accounts of Government and Public Sector Undertakings
19.1 Introduction19.2 Audit of Public Sector Undertakings19.3 Distinction between Audit of Public Sector Undertakings and Audit of Private Sector Undertakings19.4 Government Audit19.5 Distinction between Government Audit and Commercial Audit19.6 Comptroller and Auditor General of IndiaPoints to PonderReview Questions
Chapter 20. Auditing in an EDP Environment
20.1 Introduction20.2 General Approach to an EDP-based Audit20.3 Computer Installation Review20.4 Computer System Review20.5 Approaches to EDP Auditing20.6 Special Techniques for Auditing in an EDP EnvironmentPoints to PonderReview Questions
Annexures
Copyright

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