Category: Audit

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…

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…

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…

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…

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?…

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…

Just as verification of assets, it is equally important for an auditor to verify the liabilities appearing in his client’s books. Liabilities are financial obligations of a business other than the owner’s equity. These may be long-term or short-term depending on the time for which resources are procured. For example, loans and borrowings, debentures, or…

Audits are crucial to any organization as the report given by an auditor has a say on the reliability of financial statements. To ensure that audits are performed correctly, it is important to consider that the effectiveness of an audit depends upon the competence of the auditor performing it. Auditors, who occupy a position of…

The duty of an auditor with regard to the detection and prevention of fraud and error has been a matter of discussion for a long time. It has been laid down by several legal decisions and has been considered in many professional pronouncements. In this blog, we are going to throw light on some of…

A partial audit, as the name suggests, is an audit done for examining a specific area of transactions in an entity, rather than the entire books of accounts from start to end. These are audits in which the terms of the audit engagement place significant constraints on the scope of the auditor’s work. Such an…