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NILAY B PATEL VISHAL S TEKCHANDANI VIJAY K BHATIA SOHAIL I SHAIKH

RESPONSIBILITIES OF AUDITORS
The auditor is concerned with the internal controls over the reliability of financial reporting, including the management of risks that may result in material misstatement of the financial statements. With respect to the effectiveness and efficiency of operations.

Statement on Auditing Standard (SAS) 109 recognizes that related controls are relevant to an audit if the controls relate to information or data used in applying audit procedures (e.g., controls pertaining to non-financial data that the auditor may use in analytical procedures, such as production statistics).

Similarly, with respect to compliance with laws and regulations, SAS 109 indicates that controls pertaining to detecting noncompliance with laws and regulations that have a "direct and material effect" on the financial statements--such as controls over compliance with income tax laws and regulations used in determining the income tax provision--may be relevant to the audit.

AUDITING STANDARDS
There are basically ten auditing standards

declared by US general accounting and auditing standards which includes general standards, standards of field work and standards of reporting.

General Standards
The auditor must have adequate technical

training and proficiency to perform the audit. The auditor must maintain independence in mental attitude in all matters related to the audit. The auditor must use due professional care during the performance of the audit and the preparation of the report.

Standards of Field Work
The auditor must adequately plan the work and

must properly supervise any assistants. The auditor must obtain a sufficient understanding of the entity and its environment, including its internal control, to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing, and extent of further audit procedures.

The auditor must obtain sufficient appropriate audit

Standards of Reporting

evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit. The auditor must state in the auditor's report whether the financial statements are in accordance with generally accepted accounting principles (GAAP).

Responsibilities of Auditors
The auditor must have adequate technical training

and proficiency to perform the audit. The auditor must maintain independence in mental attitude in all matters related to the audit. The auditor must use due professional care during the performance of the audit and the preparation of the report.

DUTIES OF AUDITORS

Establishing standards on auditing and

assurance, ·Investigation of suspected irregularities concerning auditors of PLCs, ·Registration and supervision of auditors and firms conducting auditing and assurance services for PLCs,

Auditors Suggestion
 The auditor must either express an opinion regarding the

financial statements, taken as a whole, or state that such an opinion cannot be expressed in the auditors report.  When the auditor cannot express an overall opinion, the auditor should state the reasons therefore in the auditor's report.  In all cases where the auditor's name is associated with the financial statements, the auditor should clearly indicate the character of the auditor's work, if any, and the degree of responsibility the auditor is taking, in the auditor's report.

Ethics & Auditing

Accountancy and auditing are complex and technical

processes. Ethics, in contrast, might be considered relatively simple. Difficult part of ethics, it may be argued, is not knowing what we ought to do, but getting ourselves, and others, to do the right thing.

Scope of Auditing Ethics
 The crescendo of interest in auditing (and external

accounting generally) arises from the perceived failure of auditors to do what has traditionally been expected of them – to alert shareholders and other investors.  Critiques of auditing failures range from allegations of technical incompetence often due to cost-cutting and inadequately trained staff and lack of diligence in getting beyond the paper figures to the underlying economic realities.

Conclusion
 Therefore it can be concluded that the job of

the auditor is very stressful and full of responsibilities.  The more the auditor works as per the ethical standards, the more difficult his job becomes.  Accounts is the heart of business, Auditor is the brain of business.

THANK YOU

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