In order to constitute a valid contract, the contract has to be voluntary and with the free consent of the parties. As per Section 14 of the Indian Contract Act 1872, “Consent is said to be free if it is not caused or induced by coercion, undue influence, fraud, misrepresentation or mistake”. If the consent…
Types of Audit Programme | Contents | Diff. with Audit Plan
The concept of an Audit Programme is quite useful in the auditing process. An audit programme is a collection of instructions that must be followed by the auditor in order for the audit to be carried out properly. After the audit plan has been prepared, a complete audit programme is formulated and written. In this…
The Doctrine of Restitution under Contract Law
What does the doctrine of restitution hold? The term “restitution” means the act of restoring something to its true owner after it has been taken away, lost, or relinquished. When a contract becomes void, neither party is required to perform on it. However, if one party has received a benefit from the other party under such…
Advantages of Audit Programme: How Does it Help in Audit?
Audit Programme and its advantages: An auditor uses many tools such as an audit plan, audit programme, etc. for carrying out his audit. An audit plan is the first step in the audit process as it lays down the overall strategies to be followed to conduct an audit. It describes the nature, timing, and extent…
Difference between Statement of Affairs and Balance Sheet
Both the Statement of Affairs and the Balance Sheet represent the assets and liabilities of a business entity as of a specific date. However, there are some significant differences between the two. Let’s find them out in the discussion below. The main difference between the two (Statement of Affairs and Balance Sheet) In contrast to…
Audit Working Papers and SA 230
What are audit working papers? Audit working papers refer to the documentation of the planning and execution of an audit engagement. They are essentially a record of audit procedures performed by the auditor while auditing his client’s books, relevant audit evidence obtained, and the conclusions reached by him. They may include information such as details…
Permanent Audit File and Current Audit File
A permanent audit file and a current audit file are the two categories in which working papers of an audit are segregated. But what are audit working papers? Audit working papers refer to the documentation of the planning and execution of an audit engagement. They are essentially a record of audit procedures performed by the…
Board Resolution for Appointment of Internal Auditor: A Draft
What is this resolution for? The specimen of board resolution provided in this blog is for the appointment of an internal auditor in a company. An internal audit is a controlling tool in the hands of a company that measures and evaluates the effectiveness of its affairs primarily in accounting, operational, and financial matters. The…
Ownership of Audit Working Papers: Who owns them?
Audit working papers and their ownership: Are working papers of an audit owned by the auditor? Or do they belong to the property of the client? This blog throws light on this issue. But before that, let us see the meaning of audit working papers. What are “Working Papers” and why are they important?…
What is an Audit Note Book? Contents | Advantages
An audit note book is a register kept by an audit team to record crucial points observed during an audit. It also enlists errors found, doubtful queries, and explanations & clarifications to be obtained from the client in respect thereto. The purpose is to note down all the important points that need to be clarified with…