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Define 'Financial Information' as per audit terms.
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Bills, journal, ledger, trial balance, cash flow statements, etc.
What is Cost Audit, and which section of the Companies Act governs it?
Cost Audit is auditing cost records for companies above certain turnover limits and is governed by Section 148.
Outline the additional reporting requirements for auditors under Section 143(1).
Reporting about fraud and other key matters, including transactions affecting financial interests.
What powers and duties does Section 143 grant to auditors?
Accessing records, performing inquiries, fraud reporting, and expressing opinions clearly.
What section of the Companies Act covers the auditor's duty to sign audit reports?
Section 145.
Under which section of the Companies Act 2013 can shareholders appoint auditors?
Section 139
Why is the auditor’s role critical in financial reporting?
To ensure accountability and transparency in financial reporting for all types of entities.
Explain the term 'Internal Control' in the context of auditing.
Policies and procedures to help achieve company objectives.
What audit process focuses on reviewing management practices and internal controls?
Internal Audit
Identify disqualifications for an auditor as per Section 141.
Officer/employee of the company, holding company, family-related disqualifications, indebtedness to the company exceeding certain limits, providing prohibited services (Section 144).
What are the key elements in the definition of an auditor?
Independent examination, financial information, any entity, opinion.
List four types of audit opinions defined under Section 700.
Unmodified Opinion, Qualified Opinion, Adverse Opinion, Disclaimer.
What are the requirements for someone to qualify as an auditor under Section 141?
Chartered Accountants need a certificate of practice; majority of partners should practice in India.
What does Section 146 grant auditors the right to do?
The right to attend or participate in annual general meetings (AGM).
What statutory requirements must auditors of cooperative societies adhere to?
Specific regulations and legal obligations.
Describe the concept of 'Independent Examination' in auditing.
It is conducted to express an opinion on the financial statements.
State the focus of audits for educational institutions.
Checking donations, registrations, and regulatory compliance issues.
Who are responsible for preparing accounts that auditors review?
Shareholders, Board of Directors, Management.
What is the significance of auditors’ right to sign audit reports under Section 145?
It ensures accountability and formalizes the auditor's opinion on the financial statements.
What is the primary objective of an auditor?
To express an opinion on the financial statements.
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