Need for an audit, Auditing

Assignment Help:

Need for an Audit

Whether you take an example for a modern large liability company, such we can clearly differentiate between those who control those funds the providers of funds.  The providers of funds are other third parties and the shareholders or creditors who have given loans to the company.  Those charged along with the task of controlling those funds are mostly called as management and directors.  We can also clearly see which the company has resources, and claims assets against those resources, capital and Liabilities.

A report of the directors in the form of accounts lacks credibility characterize as:

  • It may include errors;
  • It may fail to disclose frauds;
  • It could be misleading inadvertently;
  • It could be misleading deliberately;
  • It may fail to disclose all relevant information.

 


Related Discussions:- Need for an audit

Sundry debtors and loans, Sundry Debtors and Loans Sundry debtors and ...

Sundry Debtors and Loans Sundry debtors and loans are not generally material assets of companies another than those companies whose business is to create loans.  We shall cons

Procedures in computing the work of the expert, Procedures in computing the...

Procedures in computing the work of the expert The auditor must obtain reasonable assurance that the expert's work constitutes appropriate audit evidence in support of the fina

Taxation - audit process, Taxation - Audit Process Companies suffer co...

Taxation - Audit Process Companies suffer corporation tax. The Companies Act use that corporation tax payable on the profits of any specific year should be matched against tho

Reliability - sources of evidence, Reliability - Sources of evidence R...

Reliability - Sources of evidence Reliability of audit evidence is influenced through its nature and its source and since it is dependent upon the specific circumstances, we c

A disadvantage of the corporate form of organization, Q. Which of the follo...

Q. Which of the following statements is not considered a disadvantage of the corporate form of organization? a. Additional taxes b. Government regulations c. Limited liability of s

Control over fixed assets.., internal control procedures to be put in place...

internal control procedures to be put in place when purchasing a motor vehicle

Evaluation of audit evidence, Question: "The planning, testing, and eva...

Question: "The planning, testing, and evaluation of audit evidence for indicia of fraud are unlikely to be successful without that attitude, particularly because fraud is a cri

What ethical and economic issues did the auditors consider, Blowing the Whi...

Blowing the Whistle on Former Partners On St. Patrick's Day in 1992, Chambers Development Company, one of the largest landfill and waste management firms in the United States, a

Preliminary evaluation of internal control, For each of the following indep...

For each of the following independent situations, state whether you agree or disagree, and briefly explain your answer. (a) Materiality is used only at the planning stage of the

Operational auditing, phases of operational auditing report sample or templ...

phases of operational auditing report sample or template of companies operational audit report

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd