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An audit is an independent examination of

financial information of any entity, whether


profit oriented or not and irrespective of the
size or legal form

An auditor has to express an opinion on financial statements and this


helps in determining the true and fair view of financial position and
operating results of an enterprise.

Principles of Audit:
1. Integrity, objectivity and independence
2. Confidentiality
3. Trained and experienced
4. Work delegated to other auditors
5. Documentation
6. Evidence- Compliance to procedures and
accuracy and validity of data
7. Accounting system and controls
8. Conclusions and Reporting

Financial Audit
Cost Audit
Management Audit

Financial Audit
It is an independent evaluation performed
by the external auditor for the purpose of
attesting to the fairness, accuracy and
reliability of the financial data.

Objectives of Financial Audit


Compliance with the accounting
procedures
Prevention of fraud and detection of error
Finding loopholes in financial management
policy
Verify documentation and workflow
Compliance with statutory laws and rulesin
respect to financial and accounting
matters

Rights of the Auditor

Access to book of accounts


Obtain information and explanation
Visit branch offices
Receive notices
Attend general meeting
Remuneration
Lien

Duties of Auditor

Make a report
Reading the report in general meeting
To make a true and fair view
Whether he has obtained all the information
necessary for audit
Branch office reports to be forwarded
Represent non-compliance to shareholders
Sign the audit report

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