AUDITING: PRINCIPLES AND PRACTICEThis comprehensive, well-received and thoroughly updated text, now in its Third Edition, continues to provide an in-depth analysis of the basic concepts of Auditing emphasising the practical aspects of the course. The book discusses in detail, classification and preparation of an audit, internal control system, internal audit, vouching of cash, trading and impersonal ledgers in addition to other topics. Besides, it deals with verification and valuation of assets and liabilities, company audit, cost audit, management audit, tax audit, bank audit as well as depreciation. The final chapters of the book give detailed description of business investigations, audit of special entities and auditing in EDP environment. Contemporary topics have been covered in the book to enlighten readers with the latest developments in the field of auditing, such as cost audit, tax audit, environmental audit and energy audit. The book is intended to serve as an indispensable text for undergraduate students of commerce as well as for CA and ICWA aspirants. New to this Edition • The Companies Act, 2013 (based on new company law). • Internal Audit chapter especially updated in the light of Section 138 of the Companies Act, 2013 and Rule 13 of the Companies (Accounts) Rules, 2014 notified by MCA. • Cost Audit chapter based on the latest Companies (Cost Records and Audit) Rules, 2014, issued by MCA. |
Contents
| 1 | |
2 CLASSIFICATION OF AUDITS | 21 |
3 AUDIT PLANNING PROCEDURES | 46 |
4 INTERNAL CONTROL SYSTEM | 69 |
5 INTERNAL AUDIT | 84 |
CONCEPT AND IMPORTANCE | 97 |
7 VOUCHING OF CASH TRANSACTIONS | 107 |
8 VOUCHING OF TRADING TRANSACTIONS | 121 |
15 AUDITORS LIABILITIES | 304 |
16 COST AUDIT | 325 |
17 MANAGEMENT AUDIT | 346 |
18 TAX AUDIT | 355 |
19 DEPRECIATION | 381 |
20 RESERVES AND PROVISIONS | 415 |
21 PROFITS AND ITS DIVISIBILITY | 422 |
22 AUDIT OF BANKS | 449 |
9 VOUCHING OF IMPERSONAL LEDGER | 133 |
10 VERIFICATION AND VALUATION OF ASSETS AND LIABILITIESI | 143 |
11 VERIFICATION AND VALUATION OF ASSETS
AND
LIABILITIESII | 178 |
STATUTORY REQUIREMENTS
GOVERNING COMPANY AUDITORS | 187 |
AUDIT OF FINANCIAL STATEMENTS | 216 |
AUDIT REPORT | 268 |
Common terms and phrases
account payee affairs amount applicable appointed Articles of Association ascertain assessee audit evidence audit programme audit report auditor should examine Auditor’s duty auditor’s report authorized B.Com balance sheet banking company basis Board of Directors books of account business cash book Central Government certificate charged Chartered Accountants client Companies Act company’s computer cost audit date debentures debited deposits depreciation dividend documents entries evaluation expenses fair view financial audit financial statements fixed assets following historical cost including income information internal audit internal check internal control system investigation investments invoices issued items Kolkata lakh ledger loans loss account Management audit method number objectives office online computer systems operation opinion paid payment period person prescribed procedures profit and loss provisions purchase receipts received records regard register relevant required reserve respect rupees sales section 44AB share capital shareholders statutory stock sub-section subsidiary tax audit transactions true and fair turnover valuation value verify vouchers vouching