Assignment of Advance Auditing
Task: Difference Internal and External Audit.
Roll No: 0072
Definition Of Audit:
“An audit is a person appointed to examine the books of account and the account of the registered company and to report upon them to company member” Types Of Audit:
* Internal audit
* External audit.
“An authorized person appointed by the management to check the internal affairs of the organization not mandatory by law” According to Professor Walter B. Meigs:
Internal auditing consist of a continuous, critical review of financial and operating activities by a staff of auditors functioning as full time salaried employees. Introduction:
Internal audit is the independent appraisal of activity within an organization for the review of accounting, financial and other business practices as protective and constructive arms of management. It is a type of control which functions by measuring and evaluating the effectiveness of other type of controls.
Essentials of Internal Audit1. Planning
Planning is an essential feature of internal audit. The auditor can plan to check the accounts system. The plan may relate to accounting functions like purchase, sales, income, expenses and shares. The planning includes degree of risk and extent of audit. It also states the nature of audit work.
Controlling is an essential feature of internal audit. The auditor examine the operation of accounting system. He can control audit work through audit programme. The whole work is distributed among audit staff. 3. Independence
Independence is essential element of internal audit. An employee of the company does the work of internal audit. Management must not influence him. He must be free in developing audit programed, audit investigation and audit reporting. 4. Staffing
Staffing is an essential part of internal audit. The trained...
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