Substantive procedures in Audit and their Types

We know that an auditor has to collect evidence in support of his opinion. The auditor obtains this audit evidence by using compliance and substantive procedures. While compliance procedures are those tests that seek to examine the efficacy of internal controls operating in the client’s entity, substantive procedures are tests designed to check the accuracy…

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Methods of Obtaining Audit Evidence and their Reliability

Methods of obtaining audit evidence: Before jumping onto the methods of obtaining audit evidence, let us see what constitutes audit evidence and how an auditor determines it to be sufficient and appropriate. Audit evidence: Meaning During the course of an audit, the auditor comes across various assertions made by the management. He has to evaluate…

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Strict Liability and Absolute Liability: A detailed guide!

There are some important rules when it comes to the law of torts. What type of liability can arise, who can sue and who can be sued under what circumstances? These aspects are all guided by certain rules. The concept of strict liability and absolute liability is of relevance here. Meaning of strict liability and…

Performance of Contract and its Related Provisions

It is well known that every valid contract imposes certain legal obligations on both the contracting parties and this obligation lasts until the contract is actually performed or otherwise discharged. The performance of the contract is one of the several ways through which a contract is discharged, and it is the most natural, preferred, and common way of…

Rights of Indemnity Holder in a Contract of Indemnity

Contracts of indemnity work towards saving a party from incurring a loss. One party makes good the loss suffered by another party. In this blog, we have discussed the meaning of indemnity contracts and the rights of the person who has been indemnified against a loss (rights of the indemnity holder). The timing when the…