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Unit 1: Introduction to Auditing

(c) Errors of commission Notes

(d) Errors of omission
(e) Compensating Errors.
(f) Misappropriation of cash
(g) Misappropriation of goods

(h) Falsification or manipulation of accounts
(i) Window dressing
(j) Secret reserves
5. What are the advantages of auditing for different organizations?

6. What are the different types of audit? What is the difference between internal audit and
statutory audit?
7. Define the main objective of audit.

8. What instructions should be followed while doing audit?
Answers: Self Assessment

1. Indian Companies Act, 1913 2. Institute of Chartered Accountants of India
3. An independent body 4. Books of a accounts; records of a business
5. Correspondence audits; office audits; field audits
6. Preparation of accounts 7. Prior existence of accounts

8. Financial statement 9. Secondary
10. Errors of principle 11. Third party audit
12. Subsidiary or Secondary 13. Social

14. Compliance audit 15. Companies Act, 1956
1.12 Further Readings

Books David Coderre (2009). Internal Audit: Efficiency through Automation, John Wiley &
Sons.
Emile Woolf, Moira Hindson (2011). Audit and Accountancy Pitfalls: A Casebook for
Practising Accountants, Lawyers and Insurers, John Wiley & Sons.
Iain Gray, Stuart Manson (2007). The Audit Process: Principles, Practice and Cases,
Cengage Learning EMEA.
Jeanette Franzel (2009). Single Audit: Opportunities exist to improve the Single Audit
Process and Oversight, DIANE Publishing.

Susan Switzer (2007), Internal Audit Reports Post Sarbanes-Oxley: A Guide to Process-
Driven Reporting, John Wiley & Sons.

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