NAME:ANIRUDH RAJESH PATIL

CLASS: FY. BAF

DIVISION:B

ROLL NUMBER:525
SUBJECT: AUDIT
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Explain audiing and otjeckives ok auditing

Auditing a bystematicRxamination o ho
booB and hecahdb of a busini>s Oth
Hb

gonizahon to cbconBain oveibyand fo

hepent Upon the hacts hegandan i 6inancial
opehatons and the houl thoraoh dha oGnd osudit
nob latin onigin which meanb to connol
chick 1bpectand 9eviSe C Lahinuwend= audine
In Shot on audit on QXoamination and venlkjcation
oaCompany's binancial and accGunhng f cond
documents by an indapendant
and bUpportring
phokeb0nal against btoblibhed aiteria
-

Ogjecthueb o an Audut

SubDidiphyObiechues
Phimny Objechveb

s Detection and phavenhon

Examining tha bybtem
intenna chack
Chucking onuth metical
Onda- gOve-vaiatton
OCounoCy booR> o sh btocR
OCCSunt ynibying f
Uehbying the outh enicay
and validity o thanbachOb

Chacking tha phopdn distinchion

Capial 2 uvenue e
manacHonb
exitlenco o n d
Con mming
valun 0 e s &LiabiliHeg.
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a. himaty Ohjective ab p bechon 9227 ct.

(ompanies Hct 1956 tho
auditoh t o
phimau duty objectiue) t h e balonce bhat
p o t t t o the Ownus uwbethou the
h o Company's ae
giueb.a tmue anmd hau view o
b b a b and the pnohit ond los Hicgiuess a
CtRctblguh sh pnobrt n lot hon tha inancial
yeah
b econdanu objective It b oaso Coled a
inadantal objectiue s
SUbidi0u objecue aSt incidentol to tha
obaChon T h e maun objeckive dho 1ncadantal
objechue s ouditng L

lDetecion and preuenton ohauds

1Detcion and pnaventon Enno
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2 Ditingoinh betwean Pucliting and Hccounting Cben dho bcope o uoek Pat
Scope dhe bcope s
Anb: inuoluab the OaHon yogak involves
o ubent uean hinancio validating the pat
Point Accoonhng Audiing Stalermanl 6tnancia Salemanls
DekinaionAccounting b the phochbs b Auditing thL phoce Lavelo Vay daBailed os aveny somple -babed
which daj-to-dau mOngtonu aCompru hanblive valun Doil
Do inoncial nonbachon rwd
Cohdb o thenganization binancial staBemans tobe cpturud
an maintained and ah huthhaconds phupoud unda)h
Otilized o pmapainancia HhA accoLunhng Pmoco PenkeAmed Caubied by book ke0pen and Qualikied Auditing agencu
Staemet Accointanf Cinlennad_Omplayea on auditer(exehnol ond
b o the onganizahion independont to thoaanizaBhn
Ponpsbe Jho main punpos b to Jhe maun puhp0>e 1b to
aive tru pictur o bubunassenbu tho ruliab1lity s hRopeat To the management oHa To monagementLthe
health nancial statementb bobmisbion ngonzaBon boand c6 dihoctons
0nd Shoreholda
Mode o Daily i.e.contin Peniodicí.e.quanBenly
Oponakion pnocas nyeang Key Finoncial stalkmenk 2a Audit Reponts
divanab Thcona bhakemant o
Objechve dhe main obiechve caccaunhnahe maun objecriue statement o Pnohit 2 Lesss
b to os»b uwhethana Audathng t o uoby the alanco dhaet Cash Flou
Companu ha onnad pmobils CoechnoSot the onoonizati tale rment otc
9uhhoud latus accont ond inanial
Obtablibh the cunan inaniolalements U cehtoun
DSIhion e the egonizakionb ceh thot ho
the poniaulon ostt 2xhibit the hru
peniod V1u
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Dibtnguidh beBwean Aucditing o0d Accountina

Anb
ng
Point Accounhng Audikng
DekinaHon Accounting bthe phocas by Auditing b thlphou)
which dau-to-dau mondtanu a Compn hanbive ova
acohdb o thenganization> inanciol staBeman o
a Maintained and ahehuthon hucondb pho ponid undan
OHlizedHo prtpa inancial th accoLunting pTo@
Stoemant

Ponpebe Jho maun puhpoSe b to Jhe moan puhp0de Ib to

oive thuL pictur O bUDINOSS |V@nibu thQ TUiabili H
hoallth inancial Statementb
Mode o,Daulu i.e. (ontinusub Peniodic i.e. quanenly
Oponation pnocos eany
Objechivedha main obiechive accounkngl Jhe maun objechive
t o o»b uphethaha Auditng bto uaby h
Companu ha Qchned pnohis Cecno th naonizas
9Uhland l5 thuus accanS ond Gnancial
Obtablibb the omhac inancial ale rents tuug certaun
pebiione the egonizaHonb cenh6thot ho
thR panhiculan Qxatt exhibit the huu
peniod
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Scope
Scope Cwbent ho bcope s woom Pabt dhe cope sb
Inuolugs the OaHon Uogas involves
o cuhent yean hinancio validating the pos»t
talemanls 6inancia Stalemanls
Luvel oVey daBailed as eveny somple -babed
Dleul inanciaL tnanbachon nd
tobe copturud

PenheAme Codued by bookReepen and gualihied Auditing

agen
D Accountanf Cinlennal employee audite (exenno ond
o the ongonizahin inBepandont fo the ohganizahon
Rapett Jo the management o6 LO managementfhe
Dobmision gondzaBon boond G6 dihactorb
ond horeholda

inoncial Btalemenk eg Aodit Re ponls

dalivendbThcomo btalemant o
stotement o Pnohit 2 Losss.
halance Bheet Cash Flou
tale mont o t c
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3 wnat us in+hnal Conthol 2 COhat H

oe OJecive
Pob Snional Contnol comphibes o th plan o the
onizathon and all tho CO-0ndinale methodb and
meabuhD> Cdopledl uolthin a bubinab to sakeg uon.c
a e l choch, the accunogy ond roliabilit 6
S accounhng data to pnomote o
pmatona
ebhicien 0Td to oncounage adhranco t0
phisabed mana genial polides

Objechues ol, inleno onthol

o mini.mizei not Complefely eliminale uabtage
Cnd inehiciencies in buings operodion& and to
bahegaund the aseS oHhe busines
To enbum high degha0 acaunacu dnd toliability
accouning
O
datoond phomoleopenaHonal ehicieny
To meabuho ho a the policies o tho managemen
aho being implemenkd

To oudlUale the 26icencH penleimance jn al

obpecb o busbings achvifies and to highligh
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4 What i Venuhicahion What ane the objechiues

o veniication
Hrb:
Neniicakon meons the aat o obbuning the cotcnes
Valu06abseis ond iabiliies in te onqonizatton-
t 9ehgs to tho oxominations
o pnoob o hHe ond
hU xislence nConkinmoion ok sels ond liabilutes
Gn thedale Balanco Bheat t
Usuall indicate
JesljcaHOn o0beks o ony engani20 Hon shich
Can be done by 2XominaHon ualu OundbiP
Xibencopob 9Aion ok ang asels 0nd albo Qnsurus
that th a»ek ae hao nom onyu chonge Tn Simple
Oendb 3 Vaicoakion meandb pnoving tha uth on
Conin.matton
KFollouuing ono th objechues o UOubication
i: do h o d t coshoct yauo 3 ea
tsn d liabilitHes.
i: Jo knau uhath he Balanao Bhoat oxhibib
a
mue and hain vieud ot the BhaBe ok a bhant o
the bubinss
i . do und out he Ouondbhip passesion andHH2 o
he aseb oppeaning in the Balanao Bhoa
iv.To ind out whetheh asel a in exiptenco
V. To dikect haudb and o h S U i b any while
hecondan g obbes in te poce o thi concenn
.To Nnhu OhthmetC a.ccunou othauc0unta.
VI To enuo that tn oSbelA haue bean phapenly
90condod.
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5. nite 3hont note on

A: TRUE and Fai Vieuo: u e ond dain Vieuo i n

h
Ouditina m e a n tha
6inancial 9talemertb ae r00nom malehial
mibslalemenls ond haithhully ephabent
e he 6inanad
penlm0nc ond pobittOn d the antity
not
HHhough axphb>ion o4 thuun ond hauh uieu b
sthicty dajinad in the accounting litonau
w e may
doiue h o olloing genahal concdlusion o to i s M2aning

ROE Suggesls thoBt the finanaiciBalemants ane ackually

to
d
COnecand haue bean pnopaned acanding
a pplicable Tap&ntng nameuohk

Stakmants prus ent

FATRit implie that thehinancial
he inhematon aith ally wthau any elemant
r0ect he eonamic 8ub blance
biab ond th
oonbachonb naBhe thon Just houn \egal n
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B. Hudiing Sampling Audit Bampling h Sna

O On Qudut þnocediu0
Selechon sh the iiems uwithin an accGunt balanc
clasb ob thonbachon The Somplin a maBhac ubeO
shodlduield an eaua phobabilit 3 that ach Unit n-

tho bom ple could be elected.The iotent behind

OlOn L o 1 to Qualuate game abpect tho inhamaiOD
Hodit sompling n aueny impoatant pant aaudit ogaD:

dhe 6ollouing ou the punp0beb and cojechiuab

Oudit >ompling

Lo qaHha audit oUidanca inondsr t o condud

Gudut opie Opinion
TO pnovido he bobb ben tha audito to conclublon
audit OPoLon
T o dTec onq Rind G Ung o 6naud h a t c u l d

happen in tho compang ab well ab inancid akemons

To pnoue that the auditos hove done habjob>
bobe On th hoaunod audiing 2Bandand
Ube o o tool on inveiakon
AuditSampling Type
tatibic Budit bompling
Non-taiyhc hudut Sampling

Method o Budit Somplina

Random belecthon Haphozond belechon

temakc Selechon Block Selecticn
Monetaay Ontt bm pling
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CDibtinguih bekuean Vouching and Vøniljcato0

Pns
Point Vouchinga VERTFTCATTON

Meaningouching mean chacking tha Nanicatons meonsa phocatO-

aCunacyo the tnankacions b& tauntice tha validiky ok asae
HOCONdAd to the hoob> o dccoun a n d liab1liH cppeaming 1n

Badora bhaat

Bobsita Docupmentany Fvidone Obbeuahon ond Docum entay

EVidenc

ExuminaHto Ttes o Drahit& LesTem oh Balanco het

Accoun t

CorUied Audit clenbs Auditor

Yeon-nound At tha and o6 the inandialyu

Opjechue To Oxamin the cOAcAHs To conhinm n uwndbhip

yali diy ond tomple kno3 po>bson AIsenco valu ation
ctha nanbactio and dihclobuhi o the item
OPpeoning on the Balanco >haot.