Audit
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“Audit Interview Questions and Answers will guide us here that Audit is a process of an evaluation of a person, organization, system, process, project or product. Audits are performed to ascertain the validity and reliability of information, also to provide an assessment of a systems internal control. The goal of an audit is to express an opinion on the person / organization/system (etc) in question, under evaluation based on work done on a test basis.”
42 Audit Questions And Answers
22⟩ What are tangible assets?
Tangible Assets are those assets which we can see or touch like fixed asset ,machinery,etc.
23⟩ What is vouching?
Vouching is the process of checking for the existence an example for this is checking from the final record to the supporting document.
24⟩ Who will audit an auditing firm?
One auditing firm can audit other auditing firm.
25⟩ What should the internal auditor?
Contact the board of directors or the audit committee. They should ensure the independence of internal auditing.
26⟩ What is social audit?
social audit is performed to know the corporate social responsibility.
27⟩ What is the mean of decommission Liability?
Decommission Liability is costs that a company expects to incur in the future when the plant is shut down.
28⟩ What is final audit?
Final audit is commenced when all account has been closed and final accounts is been prepared.
29⟩ What is external audit?
External audit is that which is critical review of the representation of the published financial statements it is compulsary for all company;s which are listed in the stock exchange.
30⟩ What is non statutory audit?
This is the audit not specially required by law this scope of the audit will be outline by the contract between the auditor and the clients.
31⟩ Do you know the different types of audits?
► Statutory Audit
► Non-statutory Audit
► External Audit
► Internal audit
► Final Audit
► social audit
► performance Audit
32⟩ Do you know what are the reasons for getting audited?
It is requested by Audit committee or the Company's; shareholders. The main objective of modern Audit is to help the MGMT to achieve its various objectives by bringing a systematic approaches and evaluating the risks.
33⟩ What is audit control procedure?
Audit control procedures are policies and procedures in addition to control environment, (altitude,awareness and actions of directors and management regarding the internal control system) which the management has established to achieve the entity specific objectives.the mix of type of controls implemented by the management will depend on the control objectives and the size of the entity.
34⟩ What is the mean of statutory audit?
Attempt of a legally review of the accuracy of an entities financial records.
35⟩ What is internal audit?
This is a review of operation carried out sometimes continuously specially assigned staff with in the client business.
36⟩ What is the purpose of meeting in Audit?
Providing key description on the type of audit to be taken place and to analyse the responsibilities during the field work as well as client to be aware of what is going to happen after the field work.
37⟩ What is the mean of internal Audit?
Internal Audit is an audit, it is carried out either by a separate department within the bank or a firm of chartered accountant.
38⟩ What are the basic principles of an internal audit controlsystem?
The basic principles of financial internal control are explained below:Financial and accounting operations must be separated that is the handling of cash and the recording of the movement thereof should be done by different persons. Responsibility for the performance of the job must be clearly stated so that there may be no room for doubt or confusion subsequently.
Too much confidence should not be pinned in one individual. Nearly all frauds have been committed by trusted officials or employees. It is interesting to note that frauds have occurred owing to their being trusted. Relation principle relating to transfer of an employee from one job to another should be the inflexible guiding rule. This is an effective safeguard against collusion and is recognized as an important canon of sound organization.
Mechanization of the work wherever feasible and practicable should be resorted to, mechanical devices such as cash register, recording time clocks, calculation machines should be introduced. A system of control accounts should elegantly be fitted in the book keeping system.
The work should be so arranged that work done by one employee should be properly checked by independent employee. Such continuous and constant checking goods moral control and the errors and the frauds cannot go undetected.
39⟩ What is CARO 2004?
CARO means company audit report order 2004.It describes the matter on witch Statutory Auditors has to report in their Audit Report.
40⟩ Whats are the importance of evaluating an internal audit department?
Significance of Internal Auditing:
Internal auditing refers to an assessment activity managed within a corporation as a check to the entity. Its main function is to monitor control within the corporation.
The task of internal auditing is determined by organization itself, and its goals differ from those of the external auditor who is appointed to report independently.
The depth and goals of internal auditing vary widely and depend on the volume and structure of the body and the requirements of its administration. Ordinarily, the importance of internal auditing can be seen by one or more of the following:
► Implementing and monitoring of sufficient internal control. That is the duty of management that demands proper attention on a permanent basis. Internal auditors are ordinarily assigned definite task by management for reviewing controls, monitoring their function and suggesting improvements for them.
► Inspection of monetary and operational information. This may include review of the means used to recognize, determine, categorize and report such information and definite inquiry into individual items as well as in depth testing of balances, transactions and procedures.
► Review of the economy, effectiveness and efficiency of operations including non-financial controls of the corporation.
► Review of fulfillment of laws, regulations and other external requirements and compliance with administration policies and commands.
