B.Com IIIrd yr -Auditing
B.Com.
Third Year
Core Paper No. 14
AUDITING
BHARATHIAR UNIVERSITY
SCHOOL OF DISTANCE EDUCATION
COIMBATORE – 641 046
1
,B.Com IIIrd yr -Auditing
(Syllabus)
Core Paper 14
B.Com. Auditing
Objectives : To familiarize the students with the principles of auditing.
Unit – I
Auditing– Origin – Definition – Objectives – Types – Advantages and Limitations –
Qualities of an Auditor – Audit Programmes.
Unit – II
Internal Control – Internal Check and Internal Audit –Audit Note Book – Working Papers.
Vouching – Voucher – Vouching of Cash Book – Vouching of Trading Transactions –
Vouching of Impersonal Ledger.
Unit – III
Verification and Valuation of Assets and Liabilities – Auditor’s position regarding the
valuation and verifications of Assets and Liabilities – Depreciation – Reserves and
Provisions – Secret Reserves.
Unit – IV
Audit of Joint Stock Companies – Qualification – Dis-qualifications – Various modes of
Appointment of Company Auditor – Rights and Duties – Liabilities of a Company Auditor
– Share Capital and Share Transfer Audit – Audit Report – Contents and Types.
Unit - V
Investigation – Objectives of Investigation – Audit of Computerised Accounts –
Electronic Auditing – Investigation under the provisions of Companies Act.
Books for Reference
1. B.N. Tandon, “Practical Auditing” ,S Chand Company Ltd
2. F.R.M De Paula, “Auditing-the English language Society and Sir Isaac Pitman
and Sons Ltd,London
3. Spicer and Pegler, “Auditing: Khatalia’s Auditing”
4. Kamal Gupta, “Auditing “ , Tata Mcgriall Publications
2
,B.Com IIIrd yr -Auditing
CONTENT
Lessons PAGE
No.
UNIT-I
1 Auditing 4
UNIT-II
2 Internal Control 46
UNIT-III
3 Verification of assets 79
UNIT-IV
4 Auditors 150
UNIT-V
5 Investigations 212
3
, B.Com IIIrd yr -Auditing
UNIT- I
LESSON-1
AUDITING
CONTENTS
1.0 AIMS AND OBJECTIVE
1.1 INTRODUCTION
1.1.1 Origin of Auditing and Evolution
1.1.2 Early developments in India
1.1.3 Post independence developments
1.2 MEANING AND DEFINITION OF AUDITING
1.2.1 Important features of audit
1.3 DEVELOPMENT OF AUDITING
1.4 DISTINCTION BETWEEN BOOK – KEEPING, ACCOUNTANCY AND
AUDITING
1.4.1 Where an auditor acts as accountant
1.5 DISTINCTION BETWEEN INVESTIGATION AND AUDITING
1.6 OBJECTS AUDIT
1.6.1 Evaluation of objectives and techniques of Auditing
1.6.2 Opinion as regards financial statements
1.6.3 Detection and prevention of errors
1.6.4 Clerical errors.
1.6.5 Errors of principle
1.6.6 Compensating errors
1.6.7 Errors of duplication
1.6.8 Detection and prevention of fraud
1.6.9 Auditors position as regards fraud and errors
1.7 CLASSIFICATION OF AUDIT
1.7.1 General and specific audit
1.7.2 Continuous / periodical / balance sheet audit
1.8 ADVANTAGES OF AUDIT
1.8.1 For the enterprise
1.8.2 For owners of the enterprise
1.8.3 For others
1.9 LIMITTIONS OF AUDITING
1.10 QUALIFICTION AND QUALITIES OF AUDITOR
4
B.Com.
Third Year
Core Paper No. 14
AUDITING
BHARATHIAR UNIVERSITY
SCHOOL OF DISTANCE EDUCATION
COIMBATORE – 641 046
1
,B.Com IIIrd yr -Auditing
(Syllabus)
Core Paper 14
B.Com. Auditing
Objectives : To familiarize the students with the principles of auditing.
Unit – I
Auditing– Origin – Definition – Objectives – Types – Advantages and Limitations –
Qualities of an Auditor – Audit Programmes.
Unit – II
Internal Control – Internal Check and Internal Audit –Audit Note Book – Working Papers.
Vouching – Voucher – Vouching of Cash Book – Vouching of Trading Transactions –
Vouching of Impersonal Ledger.
Unit – III
Verification and Valuation of Assets and Liabilities – Auditor’s position regarding the
valuation and verifications of Assets and Liabilities – Depreciation – Reserves and
Provisions – Secret Reserves.
Unit – IV
Audit of Joint Stock Companies – Qualification – Dis-qualifications – Various modes of
Appointment of Company Auditor – Rights and Duties – Liabilities of a Company Auditor
– Share Capital and Share Transfer Audit – Audit Report – Contents and Types.
Unit - V
Investigation – Objectives of Investigation – Audit of Computerised Accounts –
Electronic Auditing – Investigation under the provisions of Companies Act.
Books for Reference
1. B.N. Tandon, “Practical Auditing” ,S Chand Company Ltd
2. F.R.M De Paula, “Auditing-the English language Society and Sir Isaac Pitman
and Sons Ltd,London
3. Spicer and Pegler, “Auditing: Khatalia’s Auditing”
4. Kamal Gupta, “Auditing “ , Tata Mcgriall Publications
2
,B.Com IIIrd yr -Auditing
CONTENT
Lessons PAGE
No.
UNIT-I
1 Auditing 4
UNIT-II
2 Internal Control 46
UNIT-III
3 Verification of assets 79
UNIT-IV
4 Auditors 150
UNIT-V
5 Investigations 212
3
, B.Com IIIrd yr -Auditing
UNIT- I
LESSON-1
AUDITING
CONTENTS
1.0 AIMS AND OBJECTIVE
1.1 INTRODUCTION
1.1.1 Origin of Auditing and Evolution
1.1.2 Early developments in India
1.1.3 Post independence developments
1.2 MEANING AND DEFINITION OF AUDITING
1.2.1 Important features of audit
1.3 DEVELOPMENT OF AUDITING
1.4 DISTINCTION BETWEEN BOOK – KEEPING, ACCOUNTANCY AND
AUDITING
1.4.1 Where an auditor acts as accountant
1.5 DISTINCTION BETWEEN INVESTIGATION AND AUDITING
1.6 OBJECTS AUDIT
1.6.1 Evaluation of objectives and techniques of Auditing
1.6.2 Opinion as regards financial statements
1.6.3 Detection and prevention of errors
1.6.4 Clerical errors.
1.6.5 Errors of principle
1.6.6 Compensating errors
1.6.7 Errors of duplication
1.6.8 Detection and prevention of fraud
1.6.9 Auditors position as regards fraud and errors
1.7 CLASSIFICATION OF AUDIT
1.7.1 General and specific audit
1.7.2 Continuous / periodical / balance sheet audit
1.8 ADVANTAGES OF AUDIT
1.8.1 For the enterprise
1.8.2 For owners of the enterprise
1.8.3 For others
1.9 LIMITTIONS OF AUDITING
1.10 QUALIFICTION AND QUALITIES OF AUDITOR
4
