Question
Which of the following quality is required in an auditor
to safeguard his/her ability to form an audit opinion without being affected by any influences? Refer to the following information to answer the next 4 questions (Q17 to Q20) The word Audit is derived from Latin word “Audire” which means ‘to hear’. Auditing is the systematic examination of financial statements, records and related operations to determine adherence to generally accepted accounting principles, management policies and stated requirement. Importance of auditing can be judged from the fact that even those organizations which are not covered by Companies Act get their financial statements audited. It has become a necessity for every commercial and even non- commercial organization. A company appoints an auditor who submits his opinion on the truthfulness and fairness of the financial performance and position of the company. An auditor’s Report is the format of result of all the effort that goes into the audit. Communicating the Auditor’s findings to interested users is part of all audits. Thus, the Final phase of an Audit involves preparing that communication, which is known as auditor’s report.Solution
Auditor is required to have an attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of audit evidence. 1. Independence - Maintain impartiality and keep actions and reporting bias free without any outside influence. The auditor should not have any fiduciary relationship with the client, so as to be able to give an independent view on the financial statements. 2. Integrity- Withstand pressure that may be exerted and take care to comply with any legal requirements. 3. Fair representation - Present all results fairly and report significant concerns. 4. Due professional care - Due diligence, due care and reasoned judgements in every situation 5. Confidentiality- Keep information secure and protect confidential and sensitive information. do not divulge sensitive information of client to third party. 6. Objectivity and Evidence- based - auditing should follow fact-based approach to reach reliable conclusions
If the sugar price is increased by 25% by how much percent consumption should be reduced that expense remains same.
Consider the following statements :
1. The Arctic Circle is connected with the Pacific Ocean by a narrow stretch of shallow water know...
A judge of a High Court is appointed by the President of India in consultation with:
8 workers working for 8 days make 8 motor cycles. Then how many motor cycles would be made by 4 workers if they work for 4 days? Assume equal efficiency...
If DOG = 26, FLY = 43 them what is the code for ‘BIRD’
Consider the following statements :
1. Punch-marked coins were found only over the Northern regions of the subcontinent.
2. �...
The average of 10 numbers is 30. What will be the new average if one of the numbers is increased by 30 and five of the rest decreased by 4 each?
The Indian Parliament consists of
If each side of a cube is reduced by 50%, the surface area will reduced by.
If we join every possible pair of the mid – points of sides of a square, the number of non-overlapping regions into which of the square is divided is�...
