Introduction to Auditing

1. INTRODUCTION AN OVERVIEW OF AUDITING

2. History: Spicer & Pegler ( Early Auditor ) Its was derived from Latin word “audire” means to hear. Earlier objectives of auditing was to detect error and fraud.

3. Definition: The examination of books of accounts and business voucher in order to see whether these books of account and business voucher gives true and fair view of the company or not.

4. Types of Information Reliable Information (ii) Unreliable Information

5. Features of the Auditing Systematic & Scientific Examination External or Independent Auditor It is a critical review of accounting system & internal control Detect errors and fraud. Decision based on information provided by concern authority.

6. Objective of the Auditing Primary Objectives: To report the owner either the financial statement gives true and fair result/ review or not. Secondary Objectives: Intentional or Unintentionally detection of error and fraud

7. Expression of opinion Qualified Opinion True & Fair view of financial statement or according to GAAP principle . Unqualified Opinion : Something new or not according to GAAP principle. Adverse Opinion: Don’t present fairly the financial position, result of operation, and cash flow of the entity.