-WHAT IS THE DIFFERENT BETWEEN INTERNAL CHECK AND INTERNAL AUDIT?

-THE EVOLUTION OF AUDITING:
 EVIDENCE OF AUDITING EXISTED DURING BABYLONIAN TIMES
AROUND 3000 BCE
ALSO FOUND IN ANCIENT CHINA,GREECE AND ROME,
 BRITAIN PASSED ACT IN 1844 WHICH AMONG OTHER PROVISION,
REQUIRED COMPANY DIRECTORS TO REPORT TO SHAREHOLDER
THROUGH AUDITED FINANCIAL STATEMENT
 ENGLISH COMPANIES ACT 1900, LEGALLY MADE IT COMPULSORY
FOR EVERY COMPANY TO APPOINT IDEPENDENT AUDITORS AS
WE KNOW THEM TODAY
 SINCE THEN AUDITING HAS EMERGED FROM ITS PRIMARY
OBJECTIVE OF PREVENTING AND DICTATING FRAUD TO ITS
CURRENT STATE OF ATTESTING TO TRUTH AND FAIRNESS OF THE
FINANCIAL STATEMENT

-WHAT IS AUDIT RISK.

————————-

-HIGHLIGHT AND BRIEFLY EXPLAIN 4 SECONDARY OBJECTIVE OF AUDITING.

ATTEMPTING
-DETECTION AND PREVENTION OF FRAUD
-DETECTION AND PREVENTION OF ERROR
-BUSINESS CONTINUITY REPORT
-INTERNAL CONTROL REPORT

-RISK MANAGEMENT AND TAXATION REPORTNIG
B. WHAT IS THE RELATIONSHIP BETWEEN AUDIT FUNCTION AND INTERNAL
CONTROL SYSTEM?
-STRONG INTERNAL CONTROL FOSTER EFFECTIVE AND EFFICIENT AUDITING
4) WHAT ARE THE 6 DUTIES AND POWERS OF AUDITORS?

ENSURE PROPER ACCOUNTING RECORDS HAVE BEEN KEPT AND PROPER
RETURNS RECEIVED FOR HIS AUDIT AND BRANCH NOT VISITED
-THE COMPANY’S BALANCE SHEET ITS PROFIT AND LOSS ACCOUNT ARE IN
AGREEMENT WITH RECORDS AND RETURNS.

IF THE AUDITOR IS OF THE OPINION THAT PROPER ACCOUNTING RECORDS
HAVE BEEN KEPT OR THAT ADEQUATE RETURNS HAVE NOT BEEN RECEIVED
FROM BRANCHES NOT VISITED BY HIM OR THAT THE PROFIT AND LOSS
ACCOUNT ARE NOT IN AGREEMENT WITH THE ACCOUNTING RECORDS AND
RETURNS ,THE AUDITOR SHALL STATE THAT FACT IN HIS REPORT
THE ACT CONFERS THE AUDITOR WITH THESE POWER
-EVERY AUDITOR OF THE COMPANY SHALL HAVE UNRESTRICTED ACCESS AT
ALL TIMES TO THE COMPANY BOOKS, ACCOUNTS AND VOUCHERS

-EVERY AUDITOR OF A COMPANY SHALL BE ENTITLED TO REQUIRE FROM THE
COMPANY ‘S OFFICE SUCH INFORMATION AND EXPLANATION AS HE THINKS
FIT
– A.WHAT IS PROFESSIONAL ETHICS PLEASE EXPLAIN:
PROFESSIONAL ETHIC ARE PROFESSIONAL BEHAVIOUR EXPECTED FROM THE
AUDITOR.
THIS INCLUDES
-CONFIDENTIALITY
-HONESTY

• INTEGRITY ETC
  B.STATE THE PROCEDURES FOR REMOVAL OF THE AUDITOR
  FOR THE AUDITORS REMOVAL TO BE VALID
• A SPECIAL NOTICE OF 28 DAYS MUST BE GIVEN IN RESPECT THEREOF BY
  DEPOSITING THE NOTICE AT THE COMPANY’S REGISTERED OFFICE.
• THE COMPANY ON RECEIVING SUCH NOTICE MUST INFORM THE AUDITOR OF
  HIS INTENDED REMOVAL
  -IF THE AUDITOR WISHES HE SHALL MAKE WRITTEN REPRESENTATION TO THE
  SHAREHOLDERS, AND SHALL HAVE THE RIGHT TO CIRCULARISE SUCH
  REPRESENTATION TO MEMBERS AND TO SPEAK AT THE MEETING WHERE HIS
  REMOVAL WILL BE DISCUSSED
  C.WHAT IS AUDITOR’S LIABILITY.
  THIS IS THE LIABILITY THAT ARISE DUE TO FINANCIAL STATEMENT
  MISSTATEMENT OR AUDITOR’S NEGLIGENCE

-A.WHAT IS INTERNAL CONTROL SYSTEM?

THIS IS THE WHOLE SYSTEM OF CONTROL, FINANCIAL AND OTHERWISE
DESIGNED TO SAFEGUARD THE ASSET OF THE BUSINESS, TO PREVENT AND
DETECT FRAUD
B. STATE TWO OBJECTIVE OF INTERNAL CONTROL SYSTEM.

• SAFEGUARD THE ASSET OF THE BUSINESS.
  -PREVENT FRAUD
  -COMPLIANCE TO ORGANISATIONAL OBJECTIVE
• 
  -WHAT IS COMPLIANCE TEST AND SUBSTANTIVE TEST?
  COMPLIANCE CHECK THE EXISTENCE OF CONTROLS WHILE SUBSTANTIVE TEST
  CHECK FOR INTEGRITY OF DATA.
  -WHAT IS AUDIT SAMPLING?
  AUDIT SAMPLING IS THE SYSTEMATIC SELECTION OF DATA FROM A
  POPULATION OR ALL DATA AVAILABE TO MAKE DECISION ON THE OVERALL
  DATA.
  C. HOW CAN IT HELP IN EFFECTIVE AND EFFICIENT AUDIT?
  -IT SAVES TIME
  -IT HELPS THE AUDITOR FOCUS ON RELEVANT AREAS

– STATE AND HIGHLIGHT THE PRIMARY OBJECTIVE OF AUDITING.
THE PRIMARY OBJECTIVE OF AUDITING IS TO EXPRESS OPINION AS TO
WHETHER THE FINANCIAL STATEMENT PRESENTS A TRUE AND FAIR
VIEW.
OTHERS

• ARITHMETIC ACCURACY OF THE BOOKS
  -AUTHENTICITY AND VALIDITY OF TRANSACTIONS.
  -DISTINCITION BETWEEN REVENUE AND CAPITAL EXPENDITURE
  -EXISTENCE AND OWNERSHIP OF ASSET
  -VERIFY WHETHER ALL STATUTORY REQUIREMENT ARE BEING ADHERED

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