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Audit,[object Object]
Audit,[object Object],Definition = evaluation of a person, organization, system, process, enterprise, project or product. ,[object Object],The term commonly refers to audits in accounting - similar concepts exist in project management, quality management, and energy conservation.,[object Object]
Auditing Is Based On,[object Object],Verification ,[object Object],Vouching,[object Object]
Verification,[object Object],Inspection, Observation, Enquiry, Computation, Analysis,[object Object],Final audit stage - verification of the assets and liabilities appearing in the balance sheet. ,[object Object],Well established techniques for verifying specific assets and liabilities. ,[object Object]
 ,[object Object],Verification,[object Object],Quality control process,[object Object],Evaluate product, service, or system complies with regulations, imposed at the start of a development phase.,[object Object],Development, scale-up, or production,[object Object],Internal process.,[object Object]
Verification of Assets,[object Object],Auditor dutyverify assets appearing in balance sheet          verify no other assets which ought to appear on the balance sheet. ,[object Object],Following aspects of assets must be verified:,[object Object],[object Object]
Authorization 
Value 
Existence 
Beneficial Ownership 
Presentation in the accounts,[object Object]
 Ascertain that the assets had been acquired for the purpose of the business and under proper authority
Confirm owner ship of the asset
Ascertain that no charge has been created on the asset
Ensure that the current book value of the asset is determined after providing correct amount of depreciation for various years
Ensure that values reflect current physical condition of the asset
Ensure that disclosures regarding assets are adequate.,[object Object]
Procedures - Verification of Assets,[object Object],Ownership of assets such as land and buildings should be verified by examining the title deeds. ,[object Object],Physical verification is the responsibility of the management ,[object Object],Ensure that it is carried out at appropriate intervals in order to ensure assets are in existence. ,[object Object],Examine the instructions given by the management for physical verification and working papers of physical verification. ,[object Object],The opening balance is to be verified from schedule of fixed assets,[object Object], Assets acquired during the year or improvements done during the year ,[object Object]
Verification of Liabilities,[object Object],A balance sheet contain liabilities grouped under various headings,[object Object],[object Object],Current Liabilities 􀂃 Trade creditors 􀂃 Accrued expenses 􀂃 Unearned incomes 􀂃 Taxation payable 􀂃 Provision for losses ,[object Object]
Procedures - Verification of Liabilities,[object Object],Verify existence of liabilities shown in the balance sheet ,[object Object],Verify the correctness of the money amount of such liabilities ,[object Object],Verify the appropriateness of the description given in the accounts and the adequacy of disclosure,[object Object],Verify that all existing liabilities are actually included in the accounts ,[object Object]
Objects of Verification,[object Object],[object Object]
Position of Assets 
Existence of Assets 

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