1. CONCEPT,OBJECTIVES, PRINCIPLES AND CLASSIFICATION
AUDIT
CONCEPT,OBJECTIVES, PRINCIPLES AND CLASSIFICATION
SUBHASISH KARAN
ASSOCIATE PROFESSOR

2. AAS-1
An audit is the independent examination of financial information of an entity whether profit oriented or not and irrespective of its size and legal form, when such examination is conducted with a view to express an opinion thereon.
FEATURES
Competent Independent Person
Examination of financial information(Financial Statements)
Entity
Expression of opinion through the medium which is
called AUDIT REPORT

3. OPINION
P/L A/C/Income Statement
Balance Sheet
True and Fair View
OBJECTIVES
Independent review of the financial statements and making of opinion towards its true and fairness-AAS-2
Towards fraud and error
(Free from material misstatements)
Towards Social Responsibilities

4. AAS-1 BASIC PRINCIPLES GOVERNING AN AUDIT
Integrity (Straight forward, honest, impartial attitude)
Objectivity and Independence
Professional Work (not to be influenced by personal whims & fancies or by others directions)
Independence (judgment is not subordinate to the wishes or direction of others or own self interest)
Confidentiality (non-disclosure of information unless asked by law)
Skills and Competence (theory & practical experience as in ACAI)
Planning (audit programme knowing client’s business, accounting system, control procedure, reliance on internal control)
Documentation (working papers for evidence & future reference)
Audit Evidence (compliance procedure-internal control: substantive procedure-transaction, balances, ratio analysis)
Accounting System & Internal Control
Work Performed by Others
Audit Conclusion & Reporting (financial statements as per GAAP, comply relevant laws & regulations, adequate disclosure of material facts : unqualified, qualified, adverse, disclaimer of opinion)

5. A U D I T R E SPECIFIC SUBJECT MATTER OR PURPOSE WISE TECHNIQUE
Balance Sheet, Standard , Systems, EDP Audit A U D I T R E
Cost, Tax, Management, Secretarial, Operational, Propriety, Efficiency, Special, Social, Human Resource, Energy, Performance, Environment, Public Deposit, Stock, Compliance, Corporate Governance, Cash Flow, VAT, Forensic Audit etc.
PERIODICITY
Periodical, continuous, concurrent, Final Audit
Organization Structure
COVERAGE
Complete, Partial
Audit
BASIC FOUNDATION
Statutory
Non
Statutory
GAAP, ICAI, ICMA, ICSI Standards, AASs, Income Tax Standards, Companies Act, FEMA, Govt. Rules & Regulations, Specific Statute, Regulatory Authority, Relevant Laws & Bye Laws etc.
OBJECTIVES
Internal, Independent Financial Audit
company
Trust
Cooperative

6. THANK YOU