Course

Unit 1

Introduction of auditing – Meaning and definition – Difference between accounting and auditing- Objectives – Inherent limitations of Audit, advantages – Auditing and Investigation – professional and personal qualities of an auditor – Types of audits –Audit Planning, Audit Programme, Audit Documentation, Audit note book and working papers – Division of work. Rights and powers of Auditors, Qualification of Auditors.

Unit 2

Internal check – meaning and definition – Objectives- Features of good internal check system – Internal audit, Distinction between internal audit and internal check – Auditing standards – Audit engagement letter – commencement procedure – documentation – AASB.

Unit 3

Vouching and Verification – Meaning – Objectives of vouching – Vouching of cash transactions and trading transactions – Vouching of personal and impersonal ledger. Verification – meaning – difference between verification and valuation – verification of assets and liabilities – valuation of assets – general principles of valuation – Auditor’s duties.

Unit 4

Cost Audit– Definition – Difference between cost audit and financial audit – Appointment of cost auditor

– Advantage of cost audit – Qualifications, rights and powers of cost auditor – Cost Audit Report. Management Audit – Meaning and Definition – Need for management audit –Management Audit Programme.

Unit 5

Recent trends in Auditing – Data analytics in auditing – EDP in audit – division of audit in EDP environment – Green audit – Online computer system audit.

Course Objective:

This course aims to provide students with a thorough understanding principles, practices and procedures for auditing.

Course Outcomes:

Students will be able to:

CO1: Understand the basic concepts of auditing

CO2: Familiarize with the internal check and internal audit

CO3: Gain knowledge on vouching and verification process

CO4: Understand the concepts of cost audit and management audit

CO5: Equip the students with recent trends in auditing

Textbooks:

1. D P Jain – Auditing – Konark Publishers
2. G. Saxena – Principles and Practice of Auditing – Himalaya Publishing House

References:

1. Jagdish Prakash – Auditing – Kalyani Publishers
2. Kamal Gupta – Contemporary Auditing – McGraw Hill
3. N. Tandon – A Handbook of Practical Auditing – Sultan Chand & Sons
4. Sudharsanam, Tandon – A Handbook of Practical Auditing – S. Chand