BM-354: AUDITING
Objective: To familiarize the students with the scope, objectives, procedure and techniques.
UNIT I
Introduction -Definition of Auditing. Scope of Audit. Objects of an Audit. Classification of Audit-Statutory. Private, Government, Internal. Continuous, annual. Interim. Partial. Balance Sheet. Cost. Tax and Management Audit-Meaning. Preparation before Audit-Distribution of work, Audit programme, Audit Files, Audit note book. Audit working papers. Procedure of Audit, Techniques of Audit. 12 hrs.
UNIT II
Internal Control - Meaning, Definitions. Principles
Internal Check-Meaning, Definitions, Objects, Merits and Demerits. Internal check
relating to Cash. Wages, Purchase, Sales and stores. 12 hrs.
UNIT III
Vouching-Meaning. Objects and Significance
Vouching of few important Items-Cash Receipt Transaction-Cash sales. B/R, Receipt from debtors, Proceeds from sale of fixed assets, Cash purchases, Payment. of creditors, Wages, Salary, Remuneration to an auditor, B/R. Purchase of land and building. Plant & Machinery. Investment. Patents and copy rights, Advertising, Petty
cash book. 12 hrs.
UNIT IV
Verification of Assets and Liabilities - Classification of Assets and Verification and valuation of different assets-Fixed. Floating, Wasting, Intangible.
Valuation of Stock
Verification of Liabilities - Meaning & Auditors duty. 12 hrs.
UNIT V
Appointment. Remuneration. Rights and Duties of auditors for joint stock companies. The Liability of the Company auditor-Civil liability-Liability for Negligence-legal decision-Leeds estate Building and Investment Society. Vs. Shephered (1887). London Oil Storage Co. Vs Seear Hasluck & Co (1904) Liability for Misfeasance Legal decision-London & General bank case, Kingston Cotton Mill Ltd. Union Bank, Allahabad. Criminal Liability-Legal decision under the Indian Penal Code. Auditor's Report-Meaning, Importance. Meaning of clear and qualified report Professional ethics-meaning, professional misconduct.
12 hrs.
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Total 60 hrs.
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BOOKS FOR STUDY AND REFERENCE:
1. T.R.Sharma - Auditing
2. Tandon.- Practical Auditing
3. Kamal Gupta - Contemporate Auditing
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