Scrutinizer
Quick Reference to "Scrutinizer"Legal Provision:-Section 109 (5) of the Companies Act, 2013.Rule 21 of Companies ( Management and Administration) Rules, 2014.Points:-1. The Board of Directors or Chairman may Appoint Scrutinizer in case of e-voting & poll method.2. Scrutinizer shall be PCA/ PCS/ PCMA/ Advocate and any other person excluding employee of the Company.3. The Scrutinizer require to Scrutinize poll process and has to submit report to the chairman in t…
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Internal audit : meaning, objectives and advantages
Internal Audit: Meaning, Objectives and AdvantagesInternal Audit: Meaning, Objectives and Advantages
Meaning: Internal audit is a review of operations and records undertaken within a business by specially assigned staff. It is a post-transaction review to evaluate the correctness of records and the effectiveness of operations on a continuous basis in an organization by the paying staffs. The term 'internal audit' has been defined as the independent appraisal of activi…
Differences between internal audit and statutory audit
Differences Between Internal Audit And Statutory Audit
An internal audit is conducted by the permanent staff of the same office to detect weakness in system, procedures and for the improvement. But statutory audit is the act of checking books of accounts as per the provision of company act. Both of them check books of account, detect errors and frauds even though they have certain differences which are as follows:
1. AppointmentAn internal auditor is generally appointed by the…
Important auditing terms and topics
Important Auditing Terms and Topics
Auditing Thorough & critical examination of all the books of account and records of a business by an independent person duly qualified for the job , with a view to find out arithmetical & theoretical accuracy of the books of account & report to the owners of business whether the statements are fair or not.
Primary Object of AuditThe primary or main object of audit is to examine the books of accounts and records with a view to fin…
Internal check and its objectives
Internal Check and its Objectives
Meaning: It is an arrangement of duties of members of staff in such a manner than the work performed by one person is automatically and independently checked by the others.
According to ‘F.R.M.De PAULA’, “Internal check means practically a continuous internal audit carried on by the staff it self, by means of which the work of each individual is independently checked by other members of the staff.”
According to ‘D.R. DAVAR,’ “Internal check is …
Characteristics of good system of internal check
Characteristics of Good System of Internal Check
1. Responsibility: Responsibility of each individual must be properly defined and fixed. The work of the business should be allocated amongst various clerks in such a manner that their duties and responsibilities are clearly and judiciously divided.
2. Completion: The work should be divided in such a way that no single person is allowed to complete the work solely by himself from the beginning to the end. However, there should b…
Internal check : advantages and disadvantages
Internal Check : Advantages and Disadvantages
Advantages of Internal CheckSome of the widely accepted advantages of an efficient system of internal check are as follows.
1. For the Businessa) Proper division of work: Internal check entails a proper and rational distribution of work among the members of staff of the enterprises keeping in view their individual qualifications, experience and area ofspecialization.
b) Detection of errors and frauds: since no individual worker is a…
Internal check vs internal audit
Internal Check vs Internal Audit
Similarities: Both Internal Check and Internal Audit are part of the whole system of internal control, as such both are complementary and go together.
Dissimilarities: There is a lot of difference b/w Internal Check and Internal Audit. Both differ from each other in the following respects:
1. Meaning: Internal Check is an arrangement of duties allocated in such a way that the work of one person is automatically checked by another.Internal Audit …
Audit evidence
Audit Evidence
Meaning: “Audit Evidence” is a mixture of observations made by audit inquiry and data compiled via analysis of other data which, when combined, enables the auditor to from and substantiate an opinion on financial statement.
Audit separates all the confirmations that the auditor has obtained and thata) Is relevant to what the auditor is trying to determine.b) Influences the auditor in formulating an opinion as to fairness of the financial statements.
Assertion by …
Rights, duties and liabilities of auditor
Rights, Duties and Liabilities of Auditor
Rights and Powers of Company AuditorsAccording to Section 227(7) of the Companies Act, a company auditor has the following rights:
1. Right of Access Books of Accounts: As per Section 227(1) of the Companies Act every auditor of the company has the right to access at all times to the books of accounts and vouchers of the company, whether kept at the head office of the company or elsewhere. Under section 209(1) (d), a company auditor ha…
Rights and duties of the auditor in case of audit of banking companies
Rights and Duties of the Auditor in case of Audit of Banking Companies
The auditor of a Banking Company has a right to examine the books and vouchers of the business to enable his to satisfy himself whether or not the balance sheet is drawn up, so as to exhibit a true or fair view of the state of affairs of the business, according to the best of his information and explanation given to him. To enable him to perform his duty, the auditor should take the following sstep:
• Gener…
Rights and duties of the auditor in case of audit of co-operative society
Rights and Duties of the Auditor in case of audit of co-operative society
The auditor of a Co-operative Society has a right to examine the books and vouchers of the business to enable his to satisfy himself whether or not the balance sheet is drawn up, so as to exhibit a true or fair view of the state of affairs of the business, according to the best of his information and explanation given to him. To enable him to perform his duty, the auditor should take the following steps…
Rights and duties of auditor in case of audit of educational institution
Rights and Duties of the Auditor in case of Audit of Educational Institution
The auditor of a Educational Institution has a right to examine the books and vouchers of the business to enable his to satisfy himself whether or not the balance sheet is drawn up, so as to exhibit a true or fair view of the state of affairs of the business, according to the best of his information and explanation given to him. To enable him to perform his duty, the auditor should take the following…
Investigation: meaning and classes
Investigation: Meaning and Classes
Investigation: When for a special purpose an inquiry is made into the accounts of the business it is called investigation. In other words, we may say that audit which is conducted for a particular object is called investigation.
Investigation involves inquiry into facts behind the books and accounts, into the technical, financial and the economic position of the business or organisation. Investigation is an examination of books and records pr…
Qualifies audit report
Qualified Audit Report
Meaning: A qualified report means an audit report which is not clean. In case auditor has any reservation in respect of certain methods mentioned in the financial statements he may qualify his report. A qualified opinion shall be expressed as being subject of or except for the effects of the matter to which the qualification matters. If the accounting standards issued by Institute of Chartered Accounts of India is not followed by the company the auditor…
Types of audit report
Types of Audit Report
For every financial report, an auditor or a group of auditors will step up to audit or inspect the financial statement whether the financial report given are true and fair view. To conclude all the audit process, an auditor must or responsible to issue an appropriate report to forming an opinion in accordance with ISA 700. In a major division, auditiong report can be classified into two categorized, it is modified report and unmodified report. These two …
Management audit: meaning, objectives, advantages and limitations
Management Audit: Meaning, Objectives, Advantages and Limitations
Management Audit: Management audit is a method of independent and systematic evaluation of the management activities at .all levels of management to ascertain the functions, efficiency and achievement of' the management (i.e. policies) as compared to standards set by the company.
According to L. R. Howard, "Management audit is an investigation of business from the highest level downward in order to asce…
Cost audit - meaning, objectives,advantages and disadvantages
Cost Audit - Meaning, Objectives, Advantages and Disadvantages
Cost Audit: It is an audit process for verifying the cost of manufacture or production of any article, on the basis of accounts as regards utilisation of material or labour or other items of costs, maintained by the company. In simple words the term cost audit means a systematic and accurate verification of the cost accounts and records and checking of adherence to the objectives of the cost accounting.
As per ICWA…
Final audit - meaning, characteristics advantages and disadvantages
Final Audit - Meaning, Characteristics, Advantages and Disadvantages
Final audit is also called as the “Balance sheet audit” or the “Periodical audit”. Final audit is started when the books of accounts closed at the end of the year. It is the most satisfactory form of audit from the point of view of an auditor. In this audit there is cent percent checking of the accounts. In case if the business has an effective and proper internal control system. Then the audit sampling is p…
Continuous audit - meaning, characteristics, advantages and disadvantages
Continuous Audit - Meaning, Characteristics, Advantages and Disadvantages
The audit that remains continue throughout the financial year is called continuous audit.Continuous audit or a detailed audit is an audit which involves a detailed examination of books of account at regular intervals i.e. one month or three months. The auditor visits clients at regular intervals during the financial year and checks each and every transaction. At the end of the year auditor checks the pr…
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