Course Contents

1. Introduction: Origin, and Definition, Features, History, Scope, and Objectives of Audits. Relation between Book keeping, auditing and accounting, qualities of good auditors, Principles, why there is a need for an audit? Errors and frauds in Accounting, Role of Auditors in detecting errors and frauds. 2. Introduction to Classification, External audit, Internal Audit, External Audit and Internal Audit Compared and contrasted, Continuous Audit, complete Audit, and Interim Audit. 3. Preparatory steps before Commencement of Audit, Preparation by the auditor: - Audit Planning, Programme, Notebook, Working Papers, and Files. Principles and techniques of Audit: - Important Audit Techniques. Procedure followed in course of Audit:-Audit Evidence, Routine checking. 4. Internal Control: Definition, Basic Elements, Types of Internal Control, Evaluation of Internal Control, Internal Control and Auditor, Internal Check: Definition, General considerations, objectives, Advantages, Shortcomings, Safeguard against shortcomings, Internal check and auditor, General Principles of Internal Check. Internal Audit, Definition, Principles and Scope and objectives, Functions, Elements, Advantages, Disadvantages of Internal Audit, Distinction between Internal Audit and External Audit System. 5. Vouching: Definition of voucher and vouching. Importance of Vouching, Vouching and Verification, Vouching and Routine Checking, Internal and External Evidence, Principles of vouching, Teeming and Lading, Vouching of cash book complete, Vouching of Trading Transactions. 6. Introduction, Meaning of verification of Assets, Meaning of Valuation of Assets, Difference between verification and valuation, General Principles for Verification and Valuation of Assets, Problems in verification, Window Dressing, Verification and valuation of intangible Assets, Verification and valuation of land, building, plant & machinery, furniture and fixtures, verification and valuation of Preliminary expenses, Debentures, creditors, bill payable, bank overdraft outstanding liabilities for expenses. 7. Auditor: Liabilities for negligence, misfeasance, criminal, lible, and third party. 8. Audit Reports: Definition of Report, Definition of Audit Report, Types of Auditor’s Report: Clean Report, Qualified Report, Adverse Report. 9. Meaning of Divisible Profit, Meaning of dividend, Profit VS Divisible Profit, difficulties in the determination of profits, directors and payment of dividend, appropriation of profits, revaluation of fixed assets and the auditors, secret reserve and auditor, sinking fund, Legal Views as Regards Dividends. 10. Specialized Audit: Audit of hospitals, Insurance Company, Sugar Mill and Bank. 11. Investigation: Meaning, difference with audit. Objects, qualities, scope and types of investigation. 12. International Audit Standards Note: All topics will be study with the reference to International Audit Standards

Course Synopsis

The objective of the course is to introduce the students about essentials concepts of Auditing, its objectives and qualities of a good auditor. This course will elaborate the student’s internal and external control. In this course the terminology of vouchers, verification of liabilities and assets will be introduced to students.

Course Learning Outcomes

After study of this course, the students will be furnished the knowledge of: • Preparatory steps before commencement of audit, auditor reports, Meaning of verification of assets • Meaning of Divisible Profit and investigations. • Auditing of specialized Institutions. • International Audit Standards.