What Are The Basic Principles Of Auditing?

What are the basic principles and techniques of auditing?

Auditing – Basic PrinciplesPlanning.

An Auditor should plan his work to complete his work efficiently and well within time.

Honesty.

An Auditor must have impartial attitude and should be free from any interest.

Secrecy.

Audit Evidence.

Internal Control System.

Skill and Competence.

Work Done by Others.

Working Papers.More items….

What are the 14 steps of auditing?

The 14 Steps of Performing an AuditReceive vague audit assignment.Gather information about audit subject.Determine audit criteria.Break the universe into pieces.Identify inherent risks.Refine audit objective and sub-objectives.Identify controls and assess control risk.Choose methodologies.More items…•

What are standards of auditing?

Auditing Standards constitute the criteria or yardstick against which the quality of the audit results are evaluated.” 4.3 Auditing standards are particularly important in cases where there is a matter of material importance and its interpretation is of a technical nature.

What are the 3 types of audits?

What Is an Audit?There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits.External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report.More items…•

What are the objectives of auditing?

The objective of an audit is to form an independent opinion on the financial statements of the audited entity. The opinion includes whether the financial statements show a true and fair view, and have been properly prepared in accordance with accounting standards.

Is Auditing compulsory?

A taxpayer is required to have a tax audit carried out if the sales, turnover or gross receipts of business exceed Rs 1 crore in the financial year. However, a taxpayer may be required to get their accounts audited in certain other circumstances.

What are the 5 performance objectives?

The key to having good all-round performance is five performance objectives: quality, speed, dependability, flexibility and cost.

What are the three general standards of auditing?

The generally accepted auditing standards (GAAS) are the standards you use for auditing private companies. GAAS come in three categories: general standards, standards of fieldwork, and standards of reporting.

What are the qualities of an auditor?

The 5 Characteristics of an AuditorHave the Required Experience. Certifications are key academic qualifications for an auditor. … Ability to Make Independent Decisions. An auditor’s decision should not be wavered or influenced by anyone. … Auditors Have the Ability to Understand Different Business Needs. … Dependable. … Effective Communication Skills.

What auditing means?

Definition: Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions. It is done to ascertain the accuracy of financial statements provided by the organisation.

What is meant by cost audit?

A cost audit represents the verification of cost accounts and checking on the adherence to cost accounting plan. Cost audit ascertains the accuracy of cost accounting records to ensure that they are in conformity with cost accounting principles, plans, procedures and objectives.