RTI, MUMBAI / DAY 1 / Slide WELCOME TO A TALK ON… AUDITING STANDARDS
RTI, MUMBAI / DAY 1 / Slide INTRODUCTION Audit Mandate - CAG’s (DPC) Act, 1971 prescribes functions, duties and powers of SAI Audit Mandate includes Audit of Receipt and Expenditure from Consolidated Fund
RTI, MUMBAI / DAY 1 / Slide Introduction (contd.) Contingency Fund and Public Accounts Trading, Manufacturing, Profit and Loss Account and Balance Sheet Accounts of Stores and Stock Government Companies Statutory Corporations Authorities and Bodies substantially financed Grants and Loans for specific purposes
RTI, MUMBAI / DAY 1 / Slide Audit Objectives To safeguard financial interests of the Government Uphold and promote public accountability Sound and economical financial practices Audit assists Parliament/Legislatures in exercising financial control through PACs/COPUs
RTI, MUMBAI / DAY 1 / Slide Audit objectives (contd.) Executive Governments and not Audit is responsible for enforcing economy and efficiency in expenditure
RTI, MUMBAI / DAY 1 / Slide Scope of Audit Term includes financial as well as performance audit
RTI, MUMBAI / DAY 1 / Slide Basic Postulates Audit must exercise its best judgement in determining - audit procedure basis of forming opinion contents of his report due professional care
RTI, MUMBAI / DAY 1 / Slide Basic Postulates (contd.) test audit and hence auditor is not responsible independent attitude Audit independent Auditor’s right to inspect any record, documents, call for information, clarification
RTI, MUMBAI / DAY 1 / Slide Auditing standards can be broadly grouped under 1General Standards 2Operational Standards 3Reporting Standards
RTI, MUMBAI / DAY 1 / Slide GENERAL STANDARDS AProfessional BManuals and Instructions CQuality Assurance
RTI, MUMBAI / DAY 1 / Slide General Standards -Professional Qualification Training Auditor should develop proper insight
RTI, MUMBAI / DAY 1 / Slide General Standards Manuals and instructions
RTI, MUMBAI / DAY 1 / Slide General Standards Quality Assurance Appropriate internal control system to ensure quality of work
RTI, MUMBAI / DAY 1 / Slide OPERATIONAL AUDIT STANDARDS Audit Planning Financial Statement Audit Regularity and Legal Audit Performance Audit
RTI, MUMBAI / DAY 1 / Slide Operational Standards - Audit Planning Audit should be properly guided directed and supervised sufficient understanding of the internal control system of the auditee organisation
RTI, MUMBAI / DAY 1 / Slide Operational Standards - Financial Statements Audit Financial Statements are accurate and complete True and fair view prepared based on generally accepted accounting principles(GAAPs) sufficient disclosure
RTI, MUMBAI / DAY 1 / Slide Operational Standards - Performance Audit Achievement of physical and financial goals and targets social and economic objects utilisation of resources as per projected outlay cases of overpayment, losses, avoidable, excess or infructuous expenditure due to improper planning
RTI, MUMBAI / DAY 1 / Slide Operational Standards - Performance Audit(contd..) Delays in completion overstaffing
RTI, MUMBAI / DAY 1 / Slide OPERATIONAL AUDIT STANDARDS(contd) Audit of Receipts Audit of Government Companies Auditing in EDP Environment Audit Evidence (i)Sufficiency (ii)Relevance (iii)Competence
RTI, MUMBAI / DAY 1 / Slide Reporting Standards Field Audit Report - Observations and conclusions in an appropriate form Contents should be easy to understand Report should be complete
RTI, MUMBAI / DAY 1 / Slide Reporting Standards (contd.) Accurate Convincing Clarity Concise Follow up of Audit Reports
RTI, MUMBAI / DAY 1 / Slide Reporting Standards (contd.) Report should be free from vagueness or ambiguity relevant information supported by audit evidence timeliness
RTI, MUMBAI / DAY 1 / Slide Reporting Standards (contd.) Follow up of Audit reports Adequate Prompt Proper