Services of Internal Auditor to Management The services of an Internal Auditor to the management on various lines are summarized below. 1. New Business Lines The internal auditor
Purchase returns Sometimes, goods purchased are returned back to the suppliers for various reasons such as goods are not as per sample, inferior quality of the goods, etc.
Duties of Auditor regarding the distribution of dividends The auditor should perform the following duties regarding the distribution of dividend: 1. The auditor should examine the Memorandum of
Issue of Bonus Shares The issue of bonus shares refers to a good method of capitalizing huge profits or reserves with the company, However, the company may capitalize
Reappointment of Auditor 1. A retiring auditor may be re-appointed at the annual general body meeting by passing a resolution. 2. Reappointment of a retiring auditor is not
Who can be appointed as an Auditor? Only a qualified Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 can be appointed as an auditor. However,
Views of ICAI on Joint Audit If the size of the organization is very large, two or more chartered accountants may be appointed as Joint Auditors. ‘Statements on
Auditor duty in verification of Outstanding Liabilities At the close of the year, there may be some outstanding liabilities for expenses, which must bring into accounts to arrive
Verification and Valuation of Liabilities and Guidelines for auditors Verification of liabilities is equally important as that of verification of assets. The Balance Sheet will reveal the true
Objectives of Share Transfer Audit The main objectives of the share transfer audit are as below: 1. Checking or preventing clerical errors. 2. Preventing the improper issue of