4. Definition of Audit
An examination & verification of a company’s
financial & accounting records supporting documents by
a professional , such as Charted certified public
account.
8. Stage one: Notification
This is a list of documents
(e.g. organization charts, financial
statements) that will help the
auditor learn about your unit
before planning the audit.
9. Stage two: Planning
The auditor will plan the
review, conduct a risk workshop
primarily to identify key risks and
raise risk awareness, draft an audit
plan, and schedule an opening
meeting.
10. Stage three : opening meeting
In the opening meeting scope of
audit ,time frame will be discussed
with senior management and staff
administration.
11. Fieldwork
Fieldwork typically consists of talking
with staff, reviewing procedure manuals,
learning about your business processes,
testing for compliance with applicable
university policies and procedures and laws
and regulations, and assessing the adequacy
of internal controls
13. Introduction:
Audit of different types of entity refers to the procedure
rules and regulations in inducting of auditing by a certified
chartered accountant. So we have formulated the auditing
procedure by reference to the varies entities regarding the
standard for audit purpose.
Auditing of-
1. Non-specialized entities
a) Public Ltd company
b) Private Ltd company
2. Specialized entities
a) Bank
b) Insurance company
c) Government audit
14. 3. Not profit entities
a) Co-operative society
b) Charitable Institution
Non-specialized entry-
Non-specialized entry reface to that types of entity
where includes public and private company which are
formed according to the company act-1994. Now we will
show only the format of audit report in conducting of
public and private company-
15. Auditors Report
To the shareholders of
BEXIMICO PAHARMACEUTICALS LIMITED
Introduction :
We have audited the accompanying balance sheet
of the beximco pharmaceitocals limited as of
December 31,2013 and related profit and loss
account ,statement of changes in equity and
statement of cash flows for the year then ended.
Scope:
We conducted our audit in accordance with international
standards on auditing (ISA).
Opinion :
16. We also report that:
We have obtained all that information and
explanation which to the best of our
knowledge and belief were necessary for the
purposes of our audit and made due
verification thereof
The expenditure incurred was for the
purposes if the company’s business
17. Not for profit entity
Not for profit or not profit entity
refers to those types of entities which
are not profit
Oriented but social service oriented .
So auditing of not profit
entities is obligatory for the proper
verification and accuracy of the
accounts .
19. Duties of Auditor in Co-operative society:
• Auditor must examine the rules regarding the
operation and also conscious about rules regarding
accounts.
• Auditor must know the resolution of various
meeting by examining the minutes books of the
meeting.
• Amount of capital and the number of members must
be verified by auditors.
• If there is any internal cheek system regarding the
transaction of co-operative society. It must be
examined by the auditor.
20. • Auditor will examine the cash amount which is
gotten from the members by selling share with
the help of the members and cash book.
• The salary of the employee of the society and
other expenses must be examined by
appropriate documents.
• If dividends are given to the shareholders,
methods of determining dividend must be
checked by the auditor.
The auditor will examine the verification and
valuation of stock, cash and other assets and
liabilities.
21. Charitable Institution
General rules:
1. An auditor will examine organizational method
rules and nature of charitable institutions. Whether it is
public or private in relation to the rules of examination
regarding audit . If it is private at the time the auditor
will observe the institutions thereof.
2. An auditor will examine whether the formations
of charity is objective oriented or not.
Income:
Expense:
22. Assets and liability
1. whether all assets and liabilities are
shown or not in balance sheet.
2.Auditors must verify the assets
liabilities at the date of preparing balance
sheet.
.
23. Insurance
companyGeneral duties :
1. An auditor will examine the whether the rules regarding the insurance
act 1938 and insurance ordinance 1973 are imposed appropriately.
2.He will examine the sufficiency of internal control systems and internal
check systems.
3.He will examine the documents of insurance claim in relation to loss or
damaged insured.
24. Special Duties
• 1.An auditor will justify whether ascertained
minimum reserved is preserved for the
insurance company or not.
• 2.Whether commission and managerial
expenditure are congenial in accordance with
the property of the company.
• 3. He will examine all type of investment.
25. • The banking reforms in respect of audit of
bank where registered through the banking
companies Ordinance 1991.based in this the
provisions of sections 35 of the banking
companies ordinance 1962 ,have been
substituted by new provisions of the same
sections which are summarized below-
Bank
26. • Section 39(2) the power functions penalties etc. as
are provided in sections 213 of the companies act
1994 apply to the auditor subject to the provisions of
above sub sections.
• Sections 39(3) in addition to the matters which
under the afford said act and guidelines laid down
by the Bangladesh bank the auditor in required to
state in his report , he shall also state :
1. Whether or not the information and explanations
required by him have been found to be satisfactory.
2. 2.Whether the profit and loss account shows a true
loss for the period covered by such account .
27. Government audit
Object of government audit :
To ascertain the proper use invested money in
this sectors.
To ascertain that whether the rules of govt.
are followed appropriately or not .
To prevent the waste of govt. money .
To determine the accuracy of profit and loss
account and balance sheet of those sectors .
28. Procedure
How much amount is allocated as the budget of expenditure
for related year and whether the amount is reasonable or not
it must be considered by auditor.
Whether excess expenditure is incurred above which is
allocated for budget it must be examined by an auditor .
whether expenditure s are approved appropriately by proper
authority .
Whether salary, wages and complementary salary are paid
according to the rules of industry.
