Introduction on auditing
The
practice of auditing existed even in the Vedic period. Historical records show that
Egyptians, Greeks and Roman used to get this public account scrutinized by and
independent official. Kautaly in his book “arthshastra” has stated that “all
undertakings depend on finance, hence foremost attention should be paid to the
treasury”. Auditing as it exists today can be associated with the emerging a
joint stock company during the industrial revolution.
The term internal check
implies that the work of various members of the staff is allocated in such a
way that the work done by one person is automatically checked by another. It is
defined as “such an arrangement of book keeping routine where in errors and
frauds are likely to be prevented or discovered by the very occupation of book
keeping itself’.
Internal check is a system
under which accounting methods and details of an establishment are laid out
that the accounts and procedures are not under the absolute and independent
control of any one person or the contrary the work of one employee is complementary
to that of anotherWORK OF INTERNAL AUDITOR IN ISA 315 REVISED
One of the major revisions of ISA 315 relates to the inquiries made by external auditors of the internal audit function since internal auditors have better knowledge and understanding of the organisation and its internal control. This article addresses and highlights the components of internal control.
Audit Procedure
Candidates tend to perform less well when examined on writing audit procedures. This article helps to clarify the concepts behind audit procedures, and gives advice on how to correctly approach such questions, as well as tips on what to avoid