Role of Audit

Presented by :
GIRIJA SANKAR
JWM/OFMK

What is Audit?

Audit
The

word has been derived from

latin word AUDIRE means to hear

Audit

practice
ancient times

Materials

existed

even

in

account for 60% of

cashflow and hence material has
assumed significance in modern
times.

Audit types

WIP Audit

Financial Audit

Operations Audit

Management Audit

Performance Audit

Cost Audit

Internal Audit

Social Audit

C&AG Audit

Safety Audit

Audit points
How

effectively has it served the consumer

How

have losses in storage been minimised

How

has obsolescence been controlled

How

effectively has the purchase intelligence

been utilized

How

fruitfully has the manpower been

utilized

Has

the materiel function achieved its

objective

How smoothly does the paperwork system

flow

Audit points
Has

the value of cost of carrying inventory

achieved

Prima

facie there are no misappropriation or

embezzlement

Extravagant expenditure has not been

incurred

The
The

value of money spent has been realised

accounts give a true and accurate picture

of the state of affairs in the company

Cost benefit of Audit

Auditing

involves lot of hard work

Auditor

carries a great responsibility on his

shoulder

Auditor

should submit his report after

verifying the controls and adequacy for
improving the system

Auditing

involves expenditure and hence it

should be gainfully employed.