Miscellaneous

How is an audit completed?

How is an audit completed?

The completion stage of the audit is of crucial importance. It is during the completion stage that the auditor reviews the evidence obtained during the audit together with the final version of the financial statements with the objective of forming the auditor’s opinion.

What is audit finalization?

Summary. Analytical procedures performed near the end of the audit are designed to provide evidence that the financial statements are consistent with the auditors’ understanding of the entity. Auditors and clients are under pressure to complete the audit and reporting process on time.

What is audit completion checklist?

A list of items to be checked by audit staff to ensure that the financial statements being audited give a true and fair view. ‘ The checklist may be used throughout the audit but is more specifically designed to be used as a final check before handing the files to the reporting partner of the audit firm for signature.

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How do you do a statutory audit for a listed company?

Examine whether Company passed expenses entry on a due basis. If Company passed entry through bank/cash, then ask management to first due to the expenses entry. Check any expenditure of capital nature charge in revenue expenses. Check whether GST tax input claim on any expenses.

How do you conduct a statutory audit of manufacturing company?

Statutory Audit checklist for Manufacturing Company:

  1. Inventory Observation. As per most of the auditing standards require auditors to physically observe the company’s inventory count procedures and make their own independent tests of the physical count of inventory.
  2. Price Testing.
  3. Control Testing.
  4. Inventory Reserve Testing.

What is the purpose of a statutory audit?

The purpose of the statutory audit is to provide an independent opinion to the shareholders on the truth and fairness of the financial statements, whether they have been properly prepared in accordance with the Companies Act and to report by exception to the shareholders on the other requirements of company law such as …

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What are the steps involved in statutory audit?

The steps involve: The auditor, prior to starting the statutory audit gets to understand the business through the books of accounts and financial statements that were prepared the business entity going through the audit. The statutory auditor makes an audit plan to verify the data provided in the financial statements and records.

What is a non-statutory audit?

A non-statutory audit is the review and verification process of the business of a company and it is not required by any law or statute. The non-statutory audit is a type of audit which is performed to identify an organisation’s weaknesses which may hamper the productivity and also the efficiency level of the business.

What are the limitations of a statutory audit?

There are inherent limitations to a statutory audit. Statutory auditor cannot verify the 100\% records of an entity given the time, money & resource constraints at his end. He cannot give assurance that the financial statements are true & correct in all respects.

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What is the procedure for appointment of an auditor?

1) First you examine Documentary Evidences regarding appointment/reappointment of an Auditor. 2) Examine Last Year’s copy of Audited Balance sheet, profit & loss account , schedules, notes on accounts along with 3CA/3CB, 3CD & Audit Report.