Auditing is conducted to express an opinion on the financial condition of the company.Īn audit is conducted to assure the stakeholders of the company that all the transactions recorded in the company’s accounting system throughout the year are truly reflected in the financial statements. However, an audit is not an investigation into the alleged wrongdoing in the company. In the course of his examination of the books of accounts prepared in all material respects, he ensures the accounts are free from material misstatement whether due to fraud or error. SA ensures that audit reports prepared by the accountants are highly standardised, accepted, and understood.ĭid you know? Only a Chartered Accountant in full-time practice covered within the definition of the Chartered Accountant Act, 1949 can be appointed as an auditor of a company.Īlso read: All About GST Accounting - Meaning, GST Journal Entry and Purchase What is an Audit Report?Īn audit report is prepared by an independent auditor. Auditing is conducted with a framework called Standard on Auditing (SA) prepared by The Institute of Chartered Accountants of India ( ICAI) and notified by the Ministry of Corporate Affairs. An audit is an independent examination of the financial information of a company, conducted with the objective to express an opinion.
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