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 are Reserve funds? The word “Fund” in relation to any reserve can be used only where such a reserve is specifically represented by earmarked investments. In other
Meaning of Vouching Vouching involves not only the substantiating the entry in the books of account with any documentary evidence like assessments, receipts, counterfoils of receipt book or
Evaluation of internal control on loans and advances 1. The internal control system should ensure that the borrowings and advances are within the limits and the persons involved
Guidelines for auditors in Verification of Creditors 1. The postings in purchase ledger are to be checked by verifying the books of prime entry. The postings may be
Guidelines for auditors in verification of Bills Payable It is the duty of the auditor to ensure that the bills that are paid are duly cancelled and only
Guidelines for Auditors regarding verification of Loans from Banks An organization may enjoy a cash credit facility with a bank or avail Term loan from the bank. In
Guidelines for Auditors in Verification of Debentures The Companies (Amendment) Act 2000, has introduced various provisions to safeguard the interest of the debenture holders. The amendment requires the
Audit of Shares issued for Consideration other than Cash Shares may be issued for consideration other than cash under the following circumstances: 1. Issue of Shares to Vendors: