It gives us immense pleasure to present the First Edition of Auditing, developed to align with the Second Year B.Com. (Management Studies) curriculum under the University of Mumbai, as per the guidelines of the National Education Policy (NEP) 2020 and is applicable from the academic year 2025–26.
Auditing plays a vital role in ensuring the reliability and credibility of financial information in every organisation. As businesses grow in size and complexity, the need for a systematic and independent examination of financial statements becomes more important. This study material introduces students to the fundamental concepts, principles, procedures and techniques of auditing in a structured and comprehensive manner.
This material provides a comprehensive introduction to auditing, covering the basics of financial statements, users of financial information, objectives of auditing, and its inherent limitations. It explains the importance of detecting errors and frauds and outlines the auditor’s responsibilities. Key auditing principles such as integrity, objectivity, independence, confidentiality, competence, planning and reporting are discussed. Various types of audits, along with their advantages and limitations, are also included.
The content further covers audit planning, programmes, working papers and audit notebooks. Advanced techniques like test checking, audit sampling, internal control and internal audit are explained, followed by practical vouching and verification of incomes, expenses, assets and liabilities. This compilation aims to provide students with clear, exam-oriented and practical auditing knowledge.
Contents –
Module 1 :
1. Introduction to Auditing
2. Principles of Audit
Module 2:
3. Audit Planning, Procedures and Documentation
4. Audit Documentation
Module 3:
5. Auditing Techniques and Internal Control System
Module 4:
6. Auditing Techniques: Vouching and Verification