Page 44 - DCOM204_AUDITING_THEORY

Auditing Theory Pooja, Lovely Professional University

Notes Unit 3: Roles and Independence of Auditor

CONTENTS
Objectives
Introduction

3.1 Auditor
3.1.1 Integrity
3.1.2 Objectivity

3.1.3 Independence
3.2 Independence Needs
3.2.1 Appearance of Independence does affect Perceived Information Risk

3.2.2 Appearance of Independence is an Appropriate Subject of Regulation
3.2.3 Integrity, Objectivity and Independence are not Mutually Exclusive
3.2.4 The Independence of Auditors as a Profession must be Preserved

3.3 Duties and Powers of the Comptroller and Auditor-General of India
3.4 Audit Reports
3.5 Summary

3.6 Keywords
3.7 Review Questions
3.8 Further Readings

Objectives

After studying this unit, you will be able to:
Identify audit functions of an auditor;
Know the concepts of integrity, objectivity and independence of an auditor;
Discuss the roles and responsibility of controller and Auditor-General of India.

Introduction

The very term auditor and audit makes many of us feel uncomfortable. Many industries have
independent inspectors and auditors. As function points become more widely used and become
a more important part of decision making, those using the function point counts will want them
independently reviewed and audited. Auditing is the process by which a competent, independent
person accumulates and evaluates evidence about quantifiable information related to a specific
entity for the purpose of determining and reporting on the degree of correspondence between
the quantifiable information and established criteria.
To do an audit of any kind, there must be information in a verifiable form and some standard by
which the auditor can evaluate the information. The auditor may go to the business premises to
examine records and obtain information about the reliability of the function point counts. On

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