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An Introduction
Audit
Auditing
Audit
An audit is:
Auditing
The Difference
Objectives of an Audit
Primary Objective:
Secondary Objectives:
Specific Objectives:
Advantages of Auditing
Advantages of Auditing
(contd)
Settlement of disputes.
It is a noble and respectable profession.
Helps create trust between owners and
managers and thus promotes investment.
Helps improve companys image and reputation,
credit rating, etc.
Auditors often act as designers of systems and
procedures.
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Accounting
Keeping books
Preparing financial
statements
Accountant is a part of
management.
May have other
functions in the
company.
Auditing
Checking books
Checking financial
statements
Auditor is not a part of
management
Giving an audit report
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Limitations of Auditing
Lack of independence
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Criticism on Auditing
Too costly.
Benefits are less than the cost.
Too many unnecessary formalities.
Disturbance to normal accounting work
while audit is going on.
Less than honest auditors.
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Characteristics of Auditing
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Qualities of an Auditor
Professionally competent
15
Professional Ethics
Auditor must:
Auditing Concepts
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Thank you
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