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What is difference between audit and statutory audit?

What is difference between audit and statutory audit?

Internal audit is the need of management but it is not legal obligation but statutory audit is the legal requirement. Internal audit is related to the examination of books of accounts and other activities of an organization but statutory audit checks the books of accounts and related evidential documents.

What is propriety auditing?

Propriety audit has been described as an audit of the actions and decisions of the executives. The focus of such an audit is on the financial discipline, the authority structure, efficiency, rules and regulations and the protection of public interest.

What are the difference between statutory audit and non statutory audit?

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Statutory audit is authorised and governed by law or a statute; whereas the audit got done voluntarily and without any legal or statutory force is non-statutory. Examples of non-statutory audits are the audits of partnership firms and individual proprietary concerns.

What is the difference between statutory audit and investigation?

Auditing is the process of examining an individual’s financial statement and passing estimation on it. Whereas investigation is a comprehensive and careful study of the accounts books to find out the truth. The nature of auditing carries a general examination while the investigation has a critical nature.

What does propriety during compliance audit refer to?

Compliance auditing may be concerned with regularity (adherence to formal criteria such as relevant laws, regulations and agreements) or with propriety (observance of the general principles governing sound financial management and the conduct of public officials).

What is the main difference between statutory and non-statutory?

Statutory refers to organizations and bodies that are defined by a formal law or a statute. These bodies are entities shaped by an Act of Parliament and set up by the Government to consider the data and make judgments in some area of activity. Non-statutory is essentially another term for common law.

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What is the difference between statutory and non-statutory accounts?

‘Non-statutory accounts’ are accounts or other published financial information that are not the company’s statutory accounts (e.g. simplified accounting information such as an account in any form claiming to be a balance sheet or profit and loss account relating to the financial year of a company or group).

Which audit is not a 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.

What is the difference between statutory audit and US audit?

The statutory audit process being different from the U.S. audit in many respects and potentially lacking the depth in areas important to the parent company (regardless of the amount of complaining heard locally about the amount of sampling that is performed) One consideration is simply analyzing your statutory audit fees.

How is propriety audit conducted in India?

In the case of Government Companies the Comptroller and Auditor General of India conducts the propriety audit by effectively covering most of the points either through his Resident Audit parties on a continuous basis or by test checks, and through audit by the statutory auditors specifically under his instructions and guidelines.

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What are the forms of organisation having the benefits of propriety audit?

Presently the forms of organisation which are having the benefits of propriety audit are: i. Government companies, such as the State and Central Government undertakings.

What is the difference between internal audit and external audit?

So, Remuneration of the internal auditor is fixed by the management while for the statutory auditor the remuneration is fixed by the shareholders. Internal Audit is a continuous process while the External Audit is conducted on a yearly basis.