1 / 23

WELCOME TO A TALK ON…

WELCOME TO A TALK ON…. AUDITING STANDARDS. INTRODUCTION. Audit Mandate - CAG’s (DPC) Act, 1971 prescribes functions, duties and powers of SAI Audit Mandate includes Audit of Receipt and Expenditure from Consolidated Fund. Introduction (contd.). Contingency Fund and Public Accounts

gilda
Download Presentation

WELCOME TO A TALK ON…

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. WELCOME TO A TALKON… AUDITING STANDARDS RTI, MUMBAI / DAY 1 / Slide 1.3.1

  2. INTRODUCTION • Audit Mandate - • CAG’s (DPC) Act, 1971 prescribes functions, duties and powers of SAI • Audit Mandate includes Audit of • Receipt and Expenditure from • Consolidated Fund RTI, MUMBAI / DAY 1 / Slide 1.3.1

  3. Introduction (contd.) • Contingency Fund and Public Accounts • Trading, Manufacturing, Profit and Loss Account and Balance Sheet • Accounts of Stores and Stock • Government Companies • Statutory Corporations • Authorities and Bodies substantially financed • Grants and Loans for specific purposes RTI, MUMBAI / DAY 1 / Slide 1.3.1

  4. Audit Objectives • To safeguard financial interests of the Government • Uphold and promote public accountability • Sound and economical financial practices • Audit assists Parliament/Legislatures in exercising financial control through • PACs/COPUs RTI, MUMBAI / DAY 1 / Slide 1.3.1

  5. Audit objectives (contd.) • Executive Governments and not Audit is responsible for enforcing economy and efficiency in expenditure RTI, MUMBAI / DAY 1 / Slide 1.3.1

  6. Scope of Audit • Term includes financial as well as performance audit RTI, MUMBAI / DAY 1 / Slide 1.3.1

  7. Basic Postulates • Audit must exercise its best judgement in determining - • audit procedure • basis of forming opinion • contents of his report • due professional care RTI, MUMBAI / DAY 1 / Slide 1.3.1

  8. Basic Postulates (contd.) • test audit and hence auditor is not responsible • independent attitude • Audit independent • Auditor’s right to inspect any record, documents, call for information, clarification RTI, MUMBAI / DAY 1 / Slide 1.3.1

  9. Auditing standards can be broadly grouped under • 1 General Standards • 2 Operational Standards • 3 Reporting Standards RTI, MUMBAI / DAY 1 / Slide 1.3.1

  10. 1 GENERAL STANDARDS A Professional B Manuals and Instructions C Quality Assurance RTI, MUMBAI / DAY 1 / Slide 1.3.1

  11. General Standards -Professional • Qualification • Training • Auditor should develop proper insight RTI, MUMBAI / DAY 1 / Slide 1.3.1

  12. General Standards • Manuals and instructions RTI, MUMBAI / DAY 1 / Slide 1.3.1

  13. General Standards • Quality Assurance • Appropriate internal control system to ensure quality of work RTI, MUMBAI / DAY 1 / Slide 1.3.1

  14. 2. OPERATIONAL AUDIT STANDARDS • Audit Planning • Financial Statement Audit • Regularity and Legal Audit • Performance Audit RTI, MUMBAI / DAY 1 / Slide 1.3.1

  15. Operational Standards -Audit Planning • Audit should be properly guided • directed and • supervised • sufficient understanding of the internal control system of the auditee organisation RTI, MUMBAI / DAY 1 / Slide 1.3.1

  16. Operational Standards - Financial Statements Audit • Financial Statements are accurate and complete • True and fair view • prepared based on generally accepted accounting principles(GAAPs) • sufficient disclosure RTI, MUMBAI / DAY 1 / Slide 1.3.1

  17. Operational Standards -Performance Audit • Achievement of physical and financial goals and targets • social and economic objects • utilisation of resources as per projected outlay • cases of overpayment, losses, avoidable, excess or infructuous expenditure due to improper planning RTI, MUMBAI / DAY 1 / Slide 1.3.1

  18. Operational Standards -Performance Audit(contd..) • Delays in completion • overstaffing RTI, MUMBAI / DAY 1 / Slide 1.3.1

  19. 2 OPERATIONAL AUDIT STANDARDS(contd) • Audit of Receipts • Audit of Government Companies • Auditing in EDP Environment • Audit Evidence • (i) Sufficiency • (ii) Relevance • (iii)Competence RTI, MUMBAI / DAY 1 / Slide 1.3.1

  20. Reporting Standards • Field Audit Report - • Observations and conclusions in an appropriate form • Contents should be easy to understand • Report should be complete RTI, MUMBAI / DAY 1 / Slide 1.3.1

  21. Reporting Standards (contd.) • Accurate • Convincing • Clarity • Concise • Follow up of Audit Reports RTI, MUMBAI / DAY 1 / Slide 1.3.1

  22. Reporting Standards (contd.) • Report should be free from vagueness or ambiguity • relevant information • supported by audit evidence • timeliness RTI, MUMBAI / DAY 1 / Slide 1.3.1

  23. Reporting Standards (contd.) • Follow up of Audit reports • Adequate • Prompt • Proper RTI, MUMBAI / DAY 1 / Slide 1.3.1

More Related