The liability of a statutory auditor may be charted as under: 1. Contractual Liability: The Statutory Auditor is liable for nonfulfillment of the terms and conditions of an agreement between him and the company who appoints him. He may be held responsible under the Contract Act 'in failing to perform the duties' as laid down in agreement. In the absence [...]
In this article we will discuss about various internal control questionnaires for audit areas. 1. Purchases and Creditors: At purchase department: 1. (a) Is the department separate and organised centrally? (b) Is it independent of Receiving and Accounts departments? 2. (a) Are purchases made only from approved? Suppliers? If so, is there any list? If not, why not? (b) Is [...]
Some of the most frequently asked exam questions on audit of different institutions are as follows: Q.1. Why Balance Sheet Audit carried out in banks only? Ans. The Banking Company Regulation Act, 1949 provides that a banking company cannot engage in any business other than banking business. Banking business is entirely different from other business which may involve purchase and [...]