AUDITING

Paper Code: 
COM 501
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Outcomes

 

Learning and teaching strategies

Assessment Strategies

On completion of this course, the students will be able to:

CO 165: Interpret the basic working knowledge of the Audit and its terminologies.

CO 166: Explain the objectives of conducting audits of financial statements and its internal controls system.

CO 167: Summarize the auditor’s responsibilities in Verification and Valuation of Assets and Liabilities.

CO 168: Apply critical thinking skills and solve auditing problems with the help of real life case studies

CO 169: Summarize the knowledge of distribution of dividend and Interpret the reports prepared by the auditors.

Explanations,

Discussion, Project work.

 

 

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects.

 

Unit I: 
Auditing:

• Meaning, Objects, Fraud, Errors,
• Book Keeping Accounting and Auditing,
• Classification of audits, Planning and procedure of audit,
• Audit Programmes; Auditors working papers, Test Checking and Routine Checking

Unit II: 
Internal Control and Internal Check System

• Meaning, Objectives and evaluation of internal control,
• Internal check and internal audit,
• Internal Control regarding sales, purchases,
• asset liabilities and salaries and wages.

Audit Procedure
• Meaning, Objective and Importance of Vouching,
• Vouching and Routing Checking, General Principle of Vouching,
• Vouching of different item of transactions,
• Verification and Valuation of Assets and Liabilities
• With special reference to Plant & Machinery, Building, Goodwill, Patent, Copy Right, Investment, Debtors, Inventories, Share Capital and Loans,
• Contingent Liabilities and Contingent Assets;
• Rules laid down in Kingston Cotton Mills Co Ltd, Irish Woolen Co Ltd

Unit IV: 
Audit of Joint Stock Companies:

• Appointment, removal and remuneration of company auditor,
• Audit of share capital, debentures and managerial remuneration,
• Audit for the purpose of statutory reports and prospectus
• Rights, duties and liabilities of an auditor laid down in London and General Bank Case, CIT v/s G.M Dandedkar, Anupam Roy v/s P.K Mukharjee

Unit V: 
Divisible Profits and Dividends

• Divisible Profits and Dividends with legal provisions of Companies Act (With special reference to (depreciation) and relevant Case Laws
• Auditors Report: Definition, Distinction between Auditor’s Report and Auditor’ Certificate,
• Contents of Auditor’s Report, Classification (Clean, Qualified, Disclaimer)

Essential Readings: 

• Jain, & Khandelwal Auditing Shivam Publisher
• Jha, A. Students Guide to Auditing Taxmann
• Jain, Khandelwal,& Pareek Auditing Ramesh Book Depot
• Singh , A.K. Auditing Theory & Practice Galgotia Publishing Company New Delhi
• Gupta,K. Contemporary Auditing Tata Mc Graw Hill

References: 

• Sharma, S.D. Auditing Principle and Practice Taxmann
• Sharma, T.R. Auditing Principles and Problems Sahitya Bhawan Agra
• Gupta &, Arora Fundamental of Auditing Tata Mc Graw Hill

Academic Year: 
2022-2023
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