Principles and Practice of Auditing (Sem 5, BCom)

We have great pleasure in presenting First edition “Principles and Practice of Auditing” written for students of UG courses. The related matters are written in a simple and easily understandable.

This volume is an attempt to provide the students with thorough understanding of Principles and Practice of Auditing. We have presented the subject matter in a systematic manner with liberal use of charts and diagrams where ever necessary so as to make it interesting and sustain students’ interest.

Contents –

Module – 1 Introduction to Auditing
Introduction
Meaning of Audit
Definition of Audit
Objectives of Audit
Types of Audit
Merits of Auditing
Demerits of Auditing
Relationship of Audit with Other Disciplines
Preparation before Commencement of New Audit
Working Papers
Audit Note Book
Audit Programme Qualities of an Auditor
Audit Planning
Audit Strategy
Audit Engagement
Audit Documentation
Audit Evidence
Written Representation
Review Questions

Module – 2 Risk Assessment and Internal Control
Introduction
Audit Risk
Assessment of Risk
Internal Control
Meaning of Internal Control
Objectives of Internal Control
Internal Check
Meaning of Internal Check
Objectives of Internal Check
Fundamental Principles
Internal Check with Regards to Wage Payment
Cash Sales
Cash Purchases
Review Questions

Module – 3 Verification and Valuation of Assets and Liabilities
Introduction
Meaning of Verification and Valuation
Objectives of Verification and Valuation
Position of an Auditor as Regards the Valuation of Assets
Verification and Valuation of Different Items of Assets
Land and Building
Plant and Machinery
Goodwill
Investments
Stock in Trade
Liabilities
Bills Payable
Sundry Creditors
Contingent Liabilities
Review Questions

Module – 4 Company Audit and Audit of other Entities
Introduction
Company Auditor
Appointment of Company Auditor
Qualification of Company Auditor
Powers of Company Auditor
Duties and Liabilities of Company Auditor
Professional Ethics of an Auditor
Other Entities
Audit Procedure of NGOs
Charitable Institutions
Educational Institutions
Government
Local Bodies
Cooperative Societies
Hotels
Hospitals
Clubs and Banks
Review Questions

Module – 5 Audit Report and Professional Ethics
Introduction
Meaning of Audit Report
Elements of Audit Report
Types of Audit Report
Independent Auditor’s Report and Their Illustration
Professional Ethics
Code of Ethics
Professional Accountants in Public Practices and Business
Fundamental Principles of Professional Ethics
Review Questions

Selected Questions with Answers