Page 120 - DCOM204_AUDITING_THEORY

Auditing Theory

Notes 6. What audit procedures necessary to applied by the auditor when non-compliance is
identified or suspected?
7. When evaluating the possible effect on the financial statements, what factors an auditor
must consider?
8. What are the indications that non-compliance may have occurred?
9. What is the duty of statutory auditor for compliance with accounting standards?

Answers: Self Assessment

1. False
2. True
3. True
4. Entity’s operations
5. Material misstatement
6. Collusion; forgery; deliberate failure to record transactions; management override of
controls; or intentional misrepresentations made to the auditor
7. Duty to understand the entities Environment and to obtain general understanding; Duty
to obtain sufficient appropriate audit evidence; Duty to execute procedures; Duty to get
Representations by Management
8. Records and documents; making minutes of conversations
9. Third party
10. Going Concern; Consistency; Accrual

6.15 Further Readings

Books David Coderre, Internal Audit: Efficiency through Automation, John Wiley & Sons,
2009.
Emile Woolf, Moira Hindson, Audit and Accountancy Pitfalls: A Casebook for Practising
Accountants, Lawyers and Insurers, John Wiley & Sons, 2011.

Iain Gray, Stuart Manson, The Audit Process: Principles, Practice and Cases, Cengage
Learning EMEA, 2007.
Jeanette Franzel, Single Audit: Opportunities exist to improve the Single Audit Process
and Oversight, DIANE Publishing, 2009.
Susan Switzer, Internal Audit Reports Post Sarbanes-Oxley: A Guide to Process-Driven
Reporting, John Wiley & Sons, 2007.

Online links www.asiatradehub.com/india/tr9.asp

www.auditservices.com/aevidence.html
www.investopedia.com/terms/a/auditing-evidence.asp#ixzz1x6PIvbTg
www.informationbible.com/article-auditing-in-depth-111904.html

114 LOVELY PROFESSIONAL UNIVERSITY