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Auditing Theory
Notes 2.13 Review Questions
1. Identify generally accepted auditing practices.
2. Why investor’s considerations are important in formulating and executing auditing
practices?
3. Elaborate the importance of auditing in current situations and prevalent company practices.
4. What are the various statutory requirements in carrying out various auditing practices?
5. What do you understand by audit evidence? What factors constitute auditing evidences?
6. What do you understand by word “Auditing in depth?” What are the key methods of
performing in depth audit?
7. What are the key implications of accounting/auditing financial statements?
8. Write short notes on:
(a) Cost audit
(b) Tax audit
(c) Accounting profession
Answers: Self Assessment
1. Shareholder
2. Corporate governance
3. External and objective check
4. Company’s registered office
5. Shareholders
6. Balance sheet; a profit and loss account (income statement)
7. More than six months
8. 21 days
9. Group
10. Valuation, completeness, classification, rating, mechanical accuracy, and analytical analysis
11. Mechanical accuracy
12. Integrity; objectivity; independence
13. the first auditor
14. Income Tax Act
15. Cost
16. type of firm being audited; scope of the audit
36 LOVELY PROFESSIONAL UNIVERSITY
