Whether Internal Auditing is equally beneficial for Small and Medium Enterprise’s like Large Enterprises? Recently one of my clients having turnover of approx..100 Cr asked a question whether Internal Auditing is equally beneficial for small and medium enterprises as it appears to be for large organisations? I could have replied to him immediately but...
Continue readingAn investigation into various frauds
Cash receipts Nature of duties of a person who is expected to have committed fraud. Examine the line of responsibility among the various members of the staff. Income received from different sources should be scrutinized. Carbon copies of receipts marked duplicate should be scrutinized. Examining the record of the small or negligible sources of...
Continue readingPropriety audit
The propriety audit stands for the verification of transactions based on public interest, commonly accepted customs, and standards of conduct. Principles of propriety audit Expenditure is not prima facie more than the occasion demands and that every official exercise the same degree of vigilance in respect of expenditure as a person of ordinary prudence...
Continue readingPerformance Audit
A performance audit is an objective and systematic examination of the evidence to provide an independent assessment of the performance of a government organization, program, activity, or function to provide information to improve public accountability and facilitate decision-making by parties with responsibility to oversee or initiate corrective action. Elements of performance audit Performance audit...
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Internal Audit means “An independent management function, which involves a continuous and critical appraisal of the functioning of an entity with a view to suggesting improvements thereto and add value to and strengthen the overall governance mechanism of the entity, including the entity’s strategic risk management and internal control system Applicability of Internal Audit...
Continue readingCost Records and Cost Audit
Meaning of Cost Records Cost record means books of account relating to the utilization of labor, materials, and other items of cost as applicable to the production of the goods or services as provided by section 148 of the Companies Act and the Companies (Cost Records and Audit) Rules. The Companies (Cost Records and...
Continue readingAudit of Limited Liability Partnership 2008
Audit of accounts- Audit of Limited Liability Partnership shall be audited in accordance with such rules as may be prescribed. Requirement of Audit Rule 24 of limited liability partnership, 2009 According to rule 24 of LLP – A LLP whose turnover does not exceed, in any financial year, for Rs. 40 lacs, or whose...
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