Auditing Importance

[ashish_ken]

1. Objects of an Audit OR
Write Notes on Errors OR
Write Notes on Frauds.

2. What is Audit?
What are Advantages of Audit

3. What is Internal Control, Internal Check and Internal Audit?
4. Suggest Internal Check system for “Purchases”
5. Write Distinction Between Statutory Auditor and Internal Auditor
6. Write Notes on Test Check
7. Write Notes on Audit Programme (The answer Includes Advantages and Disadvantages)
8. What is vouching (6marks)
9. How you as an Auditor Will vouch Foll Transactions:
- Travelling Expenses
- Royalty
- Underwriters Commission
- Income tax Refund
- Board Meeting Fees
(do all from text book)
10. What is Verification (6 Marks)
11. How you as an Auditor Will verify foll Assets:
- Stock in trade
- Plant and Machinery
- Sundry Debtors
- Investments
(do all from text book)
12. Distinction Between Vouching, Verification and Valuation
13. Write Notes on Capital and Revenue
14. Explain with reason whether the foll. Transactions are capital or revenue (do all transactions from text book)
15. What is Audit Report?
What is Audit Certificate?
Distinction Between Report and Certificate
16. Write Notes on Liability of Auditor
17. Reading of Ledger accounts (DO IT !!! FREE MARKS AT NO COST)
18. What are Provisions under Companys act regarding Appointment and Removal of the Auditor?
19. What are the Provisions under Companys act 1956 regarding Qualification and Disqualification of an auditor?
20. Write Short Notes on:
- Audit Note Book
- Working Papers
- True and Fair
- Contingent Liabilities
- Window Dressing

[ashish_ken]

Q.

Books of ABC Co. Ltd.
Rajeshs a/c

2006 2006
June 5 To Sales a/c 24000 June 1 By Bal b/d 20000
12 By Bank a/c 2800
12 By Sales Return a/c 500
12 By Discount a/c 700








Solution:

General Comments:
Given account is Rajesh a/c in the books of ABC Co. Ltd. It is a PERSONAL ACCOUNT. Period covered by this account is from 1st june 2006 to 30th June 2006

Comments on Individual transactions

1. -

(On 1st June 2006 ABC CO. has to pay Rs 20000 to Rajesh maybe on Account of Advance against Order)

2. Rajesh a/c Dr. 24000
To Sales a/c 24000
(On 5th June 2006 ABC Co. Ltd has sold goods to Rajesh Of Rs 24000 on Credit)

3. Bank a/c Dr. 2800
To Rajesh a/c 2800

(On 12th June 2006 ABC Co. Ltd has received a cheque of Rs 2800 from Mr. Rajesh)

4. Sales Return a/c Dr. 500
To Rajesh a/c 500

(On 12th June 2006 ABC Co. Ltd has recd. goods of Rs 500 returned by Mr. Rajesh a Customer)

5. Discount a/c Dr. 700
To Rajesh a/c 700

(On 12th June 2006 ABC Co. ltd has allowed a discount of Rs 700 to Mr. Rajesh a Customer)


Conclusion:
Rajesh is a customer or debtor of ABC Co. Ltd.
Rajesh Paid Advance to the company against order.
The Company also allowed a Discount to Mr. Rajesh.

[ashish_ken]

This is the All that u need to Know for AUditing!!!
Sorry for the Distorted Ledger cant help it....it is obvious that By means on Cr. Side and To. Means on Dr. Side.

ALL The Best

[Deep]

Thanks Ashish for sharing the same, I am sure this is gonna help everyone

[Tanya]

hi ashish
im from ide the formate u wrote is not sme as text book can we write this way

[ashish_ken]

Yes you can write it this way...atleast our sir has done it this way, so we are bound to do it this way.
Only thing that you have to do is:

1. The Comments for Individual entries should be written in columnar form.
Make 2 columns.... Journal Entry - Comments
2. The order of the Headings should be in the same order.

I've heard abt the text book.
The Text book for auditing is a bad place to be ...atleast now!
Just do whatever i've given.

[leonmayank]

Dear Ashish
the Q which u said is called reading of ledger is alternatively called 'Scrutiny of Ledger Accounts'
i would like to inform u dat this Q isnt der for d new syllabus i.e. not relevant for students appearing for april' 10
other questions r gud n seem to be important
thanx for sharing!
Al d best to al of u!