Understanding Audit Report The auditor’s report is the end product of each audit. Audit report is considered as and important channel through which opinions of an auditor about the financial statements
What are Calls in Arrears? When one or more shareholders fail to pay the amount due from them towards allotment and/or calls, such dues are called calls-in-arrears. If
Liabilities of an auditor for negligence If a person suffers a loss or damage due to professional negligence of the auditor, an action can be initiated by such
Verification of General Ledger The cash book, purchase book, sales book, sales return book, Purchase returns book are to be totaled periodically and the summary is posted in
Receipts to be verified during Hospitals audit The following are the various receipts a hospital may receive: 1. Grants from Government 2. Aids and grants from outside India
What are Impersonal ledgers? Impersonal ledgers are also called General Ledgers or Nominal Ledgers. They are of two types such as Nominal Accounts and Real Accounts. Nominal accounts
Advantages of Audit Programme The benefits of a well designed audit programme can be outlined as follows: 1. Assignment of responsibility is made easier since each job or
Disadvantages of Audit Programme Audit programme has certain disadvantages and limitations, which should be taken care of. 1. The auditor’s task becomes mechanical and as a result initiative
What is a General Reserve? A general reserve is a reserve, which is created by appropriation of profits. It is created without any specific or particular purpose. The