AA - Spring 2021 1 Framework Qualification
AA - Spring 2021 1 Framework Qualification
Auditing
Shareholder Information BOD
External Auditor I
N
F
Independent O
R
M
Internal Auditor A
T
I
O
• External auditor appointed by N
shareholders
• Internal auditor appointed by BOD
(Audit Committee) Employees
Shareholder Information BOD
Section 233: The directors of every company shall at some date not
later than eighteen months after the incorporation of the company
and subsequently once at least in every calendar year lay before the
company in annual general meeting a balance-sheet and profit and
loss account.
The balance-sheet and the profit and loss account or income and
expenditure account shall be audited by the auditor of the company
and the auditor’s report shall be attached thereto.
Assurance = Confidence
a) A three party relationship: 1) intended user, (2)
responsible party and (3) the Practitioner
b) A subject matter: data to be evaluated that has
been prepared by the responsible party i.e.
historical financial information, non-financial
performance (key performance indicators),
processes (internal control) and behavior
(compliance with laws and regulations).
c) Suitable criteria: The subject matter is evaluated or
measured against criteria in order to reach an
opinion (Accounting Framework).
d) Evidence: Sufficient appropriate evidence needs
to be gathered to support the required level of
assurance.
e) An assurance report: A written report (Audit
Report) containing the practitioner's opinion is
issued to the intended user, in the form
appropriate to a reasonable assurance
engagement or a limited assurance engagement.
LEVELS OF ASSURANCE
Absolute Not used in cases of FS
(b) of access to such copies of, an extracts from, the books and accounts of the branch as have been
transmitted to the principal office of the company;
(c) to require any of the following persons to provide him with such information or explanations as he
thinks necessary for the performance of his duties as auditor—
(ii) any person holding or accountable for any of the company‘s books, accounts or vouchers;
(iv) any officer, employee or auditor of any such subsidiary undertaking of the company or any
person holding or accountable for any books, accounts or vouchers of any such subsidiary
undertaking of the company.
(2) If any officer of a company refuses or fails, without lawful justification, the onus whereof shall lie on
him, to allow any auditor access to any books and papers in his custody or power, or to give any such
information possessed by him as and when required, or otherwise hinders, obstructs or delays an
auditor in the performance of his duties or the exercise of his powers or fails to give notice of any
general meeting to the auditor or provides false or incorrect information, he shall be liable to penalty as
provided under section 252.
Section 250. Audit of cost accounts
Such auditor shall have the same powers, duties and liabilities as an
auditor of a company and such other powers, duties and liabilities as
may be specified.