222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Latest $type=blogging$count=5$author=hide$comment=hide$label=hide$date=hide$show=home

Auditing and Assurance Standard 2

In second auditing and assurance standard, objective and scope of audit of financial statement has been explained. All the audit of balance sheet and profit and loss account will have specific objectives and scope. Following is the objectives and scope of audit.






Objective of Audit of Financial Statements 

1. Main objective of audit of financial statement is to make the financial statements relevant to statutory requirements. It means, if there is any rule of law relating to financial statements, financial statements should follow it. For example, there is specific format of balance sheet of bank. If a new bank, who made first balance sheet did not make under this format. His auditor can note this point and convert it in the valid format before next step of audit because valid format of balance sheet is statutory requirement and it must be checked by auditor.

2. Second of objective of audit of financial statement is to tell whether company's financial statements are showing true and fair view of the financial position of company or not. It everything is OK, CA will give his opinion that company's financial statements are showing true and fair view of the financial position of company.

3. One of main aim of audit of financial statement to remember management that they should do their duty honestly. We know, to make the financial statements is the duty of management but if it is not audited by independent, management will not make it honestly and it is the chance, there will be the mistakes and frauds through false information in financial statement. Audit will become always police for accounting department. As per law, audit of company is compulsory.

Scope of An Audit

1. Whole scope of audit of financial statements will be fixed by auditor.

2. Auditor will increase his scope up-to the level where he will satisfy that given information in the financial statements are reliable and sufficient. It means, he can go everywhere for collecting correct information. For example, if he found something incorrect in sending the EPF, the can contact directly the Employee's Provident Fund Organisation for knowing the truth regarding this. We know, police has to safeguard the public property. CA is also policeman who has to safeguard company's property.


3. Auditor can test the internal control system. It is the understand scope of auditor. Auditor can also verify each and every transaction by appointing audit assistant if he does not satisfy from sample.

4. When a company has made plan to do fraud through company accounts, it will become difficult for company to discover it. At that time, auditor's opinion on the financial statement will come only after examination the facts. If still there is undiscovered fraud, auditor is not responsible because auditor has to depend on some information, if all are false under master plan and we can not say auditor's report as false statement but auditor should never give his opinion in case the of suspicions.

5.It is not the scope of auditor which make him compulsory to know all the technical knowledge relating to any product or asset. But auditor can help from expert team of technical know-how for collecting knowledge regarding the financial statement's assets.

Related : Auditing and Assurance Standard 1 

COMMENTS

Name

access,2,account,86,accountant,94,Accounting,680,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,announcements,62,Annuity,2,assets,52,audit,46,auditing,41,Australia,2,B.Com.,22,balance sheet,84,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,2,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,247,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,4,Financial,134,financial accounting,145,Financial Statements,2,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,10,income,17,income statement,17,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,41,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,140,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,5,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,13,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,218,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,8,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Auditing and Assurance Standard 2
Auditing and Assurance Standard 2
http://2.bp.blogspot.com/-Qlep1Epe92M/UlF-BNDiWhI/AAAAAAAAMEg/yX9vixNFI7Q/s200/auditing.PNG
http://2.bp.blogspot.com/-Qlep1Epe92M/UlF-BNDiWhI/AAAAAAAAMEg/yX9vixNFI7Q/s72-c/auditing.PNG
Accounting Education
https://www.svtuition.org/2013/10/auditing-and-assurance-standard-2.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2013/10/auditing-and-assurance-standard-2.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy