Page 281 - DCOM509_ADVANCED_AUDITING

Advanced Auditing

Notes
progressive environmental legislation in the first place. During the political transition,
the country’s environmental legislation has been pushed by an international epistemic
community represented through international organisations and NGOs, which went along
with initiatives in other policy fields used by the ANC government to re-integrate the
internationally isolated country in the international community.
Question:
Analyse the case and write down the case facts.

Source: http://www.sfb-governance.de/publikationen/sfbgov_wp/wp9/wp9.pdf

14.4 Summary

 The professional bodies require strict adherence to the ethical codes and have considerable
enforcement mechanisms. Necessarily, ethical codes should be obeyed in the spirit as well
as the letter but often are not.

 Non-compliance means acts of omission or commission by the entity which is contrary to
the prevailing laws or regulations.

 Section 211(3A) of Companies Act, 1956 provides that every profit and loss account and
balance sheet of the company shall comply with the accounting standards.
 Auditing, like many other disciplines, is a fast changing discipline. There are a surprisingly
large number of current issues.
 E-commerce is a system of conducting business over the internet by electronic rather than
paper-based methods. In E-commerce, documents such as invoices are exchanged using a
standard method known as Electronic Data Interchange (EDI).
 Many firms now put their financial statements on the web. This presents problems for the
auditor as financial statements on the web may be altered.
 Forensic accounting/auditing can be defined as accounting/auditing skills to situations
that have legal consequences.

 Forensic accountants detect and interpret the evidences of both normal (non-fraudulent)
and abnormal (fraudulent) phenomena introduced into the books and records of an
accounting system (expansively defined) and the resultant effect upon the accounts,
inventories, and the presentation thereof.
 An information system is not just a computer. Today’s information systems are complex
and have many components that piece together to make a business solution.
 IT audit is a part of the overall audit process, which is one of the facilitators for good
corporate governance.
14.5 Keywords

Accounting Standards: Accounting Standards are the statements of code of practice of the
regulatory accounting bodies that are to be observed in the preparation and presentation of
financial statements.
Audit Operation: The Audit operation refers to an examination of auditing records undertaken
with a view to establishing the correctness or otherwise of the transactions reflected therein.

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