Embed Size (px)
Citation preview
Ta
XM
an
n®
Page
Chapter 1u introduction
1.1 Meaning and defi nition of auditing 1
1.2 objectives of auditing 3
1.3 objectives of fi nancial audit 3
1.4 Types of error and fraud 4
1.5 Advantages of auditing 5
1.6 Inherent limitations 6
1.7 Relationship with Accounting 7
1.8 Types of audit 7TesT Your Knowledge 13
Chapter 2u audit planning and internal control system
2.1 Considerations for commencing an audit 14
2.2 Audit programme 15
2.3 Audit notebook 16
2.4 Working Papers 17
2.5 Internal control system 18
2.6 Internal check 19
2.7 Internal audit 20
2.8 Inter-relationship of internal control, internal check and internal audit 21
2.9 Internal check with regard to specifi c transactions 21TesT Your Knowledge 26
Chapter 3u audit procedure
3.1 Introduction 27
Contents
Page
Preface I-5
Syllabus I-7
i-9
ta
xm
an
n®
Page
3.2 Verification of assets 32
3.3 Verification of liabilities 37TesT Your Knowledge 38
Chapter 4u company auditor: appointment and removal
4.1 Eligibility for appointment of an auditor 39
4.2 Appointment of Auditor 40
4.3 Compulsory re-appointment 41
4.4 Ceiling on number of audits 42
4.5 Remuneration of the auditor - Section 142 42
4.6 Removal of auditor 42
4.7 Rights/Powers of an auditor 43
4.8 Duties of Auditor - Section 143, section 144, section 145 and section 146 44TesT Your Knowledge 44
Chapter 5u auditor’s report and liabilities
5.1 The audit report : As a means of communication 45
5.2 Elements of Audit Report 45
5.3 Audit report of a limited company 45
5.4 Types of audit report 48
5.5 Difference between clean audit report and qualified audit report 49
5.6 Liabilities of auditor under the Companies Act, 2013 49TesT Your Knowledge 50
Chapter 6u cost audit, management audit and tax audit
6.1 Meaning 51
6.2 Definition of management audit 53
6.3 Tax Audit 55TesT Your Knowledge 57
Chapter 7u introduction to edp auditing
7.1 Introduction 58
7.2 Meaning of EDP auditing 58
7.3 Difference between auditing of manual accounts and computerised accounts (EDP systems or computer information systems)
58
7.4 Types of EDP Accounting Systems 59
7.5 Types of internal control in CIS/EDP environment 59
7.6 Distinguish between general controls and application controls 60
7.7 Audit approaches in a computer environment 60
7.8 CAATs 60TesT Your Knowledge 62
ConTEnTS i-10
ta
xm
an
n®
Page
Chapter 8u conceptual Framework For corporate governance
8.1 Introduction 63
8.2 Definition of Corporate Governance 63
8.3 need/Benefits of Corporate Governance 64
8.4 Theories of Corporate Governance 65
8.5 Principles/Four Pillars of Corporate Governance 69
8.6 Models of Corporate Governance 69TesT Your Knowledge 74
Chapter 9u board committees and their Functions
9.1 Background and definition of Board Committees 75
9.2 Feature of Board Committees 75
9.3 Functions of Board Committees 75
9.4 Kinds of Board Committees 76
9.5 Mandatory Board Committees under the Companies Act, 2013 76
9.6 non-mandatory committees 78TesT Your Knowledge 78
Chapter 10u Quirky governance: insider trading and whistle blowing
10.1 Introduction 79
10.2 Insider Trading 79
10.3 Whistle blowing 80TesT Your Knowledge 83
Chapter 11u corporate governance rating
11.1 Introduction 84
11.2 Meaning 84
11.3 Assessment criteria 84
11.4 Corporate Governance Rating in India 84
11.5 Advantages of Corporate Governance Ratings 86TesT Your Knowledge 86
Chapter 12u new paradigm oF corporate governance: e-governance and class action suits
12.1 Electronic - Governance/Green Governance/E-governance 87
12.2 Class Action Suits 88TesT Your Knowledge 89
i-11 ConTEnTS
ta
xm
an
n®
Page
Chapter 13u shareholder activism - panacea For governance problems
13.1 Introduction 90
13.2 Definition 90
13.3 Features 90
13.4 Advantages 90
13.5 Disadvantages 91
13.6 Shareholder activism in India 91
13.7 Important changes introduced by the Companies Act, 2013 91TesT Your Knowledge 92
Chapter 14u corporate governance in public sector units and corporate Funding oF political parties
14.1 Corporate Governance in Public Sector Units 93
14.2 Corporate Funding of Political Parties 96TesT Your Knowledge 97 Chapter 15
u some oF the major corporate governance Failures in developed world
15.1 The Bank of Credit and Commerce International Scandal (BCCI) 98
15.2 Maxwell Communications (UK) 99
15.3 Enron (US) 100
15.4 WorldCom (US) 101
15.5 Anderson Worldwide (USA) 102
15.6 Vivendi (France) 103TesT Your Knowledge 104
Chapter 16u cases oF corporate governance Failure in india
16.1 Harshad Mehta Scam 105
16.2 Kingfisher Airlines 106
16.3 Satyam Scam 107
16.4 Common governance problems noticed in corporate failures 108TesT Your Knowledge 109
Chapter 17u corporate governance codes and standards
17.1 Introduction 110
17.2 Cadbury Report (UK), 1992 110
17.3 Greenbury Report (UK), 1995 111
17.4 Hampel Report (UK), 1998 111
17.5 other Important Reports 112
ConTEnTS i-12
ta
xm
an
n®
Page
17.6 The Sarbanes-oxley Act of 2002 (USA) 112
17.7 G20/oECD Principles of Corporate Governance 112TesT Your Knowledge 113
Chapter 18u initiatives in india
18.1 Introduction 114
18.2 Important provisions of the Companies Act, 2013 114
18.3 Clause 49 of Listing Agreement issued by SEBI 116
18.4 Kotak Committee Recommendations 117TesT Your Knowledge 117
Chapter 19u conceptual Framework For business ethics
19.1 Introduction 118
19.2 Morality and Ethics 118
19.3 Business Values and Ethics 119
19.4 Corporate/Business Ethics 119
19.5 Benefits of being ethical 119
19.6 Approaches to Business Ethics 120
19.7 Theories of Business Ethics/Ethical theories 121
19.8 Ethical Governance 122
19.9 Code of Ethics 123
19.10 Ethics Committee 124TesT Your Knowledge 125
Chapter 20u corporate social responsibility
20.1 Introduction 126
20.2 Definition of Corporate Social Responsibility (CSR) 126
20.3 Business case of CSR 126
20.4 Arguments against CSR 127
20.5 Corporate philanthropy 127
20.6 Corporate Sustainability (CS) 128
20.7 Corporate Responsibility 128
20.8 Environmental aspect of CSR 129
20.9 Business Ethics and CSR 130TesT Your Knowledge 130
Chapter 21u csr models and drivers
21.1 CSR Models 131
21.2 CSR Models in Indian Context 133
i-13 ConTEnTS
ta
xm
an
n®
Page
21.3 CSR Drivers 134
21.4 Examples of CSR drivers from empirical studies in India 135TesT Your Knowledge 135
Chapter 22u regulatory Framework and guidance For csr
22.1 Introduction 136
22.2 The Companies Act, 2013 and the CSR Rules 136
22.3 Governance Mechanism - CSR Committee 137
22.4 Reporting for CSR 137
22.5 CSR Codes and Standards 138TesT Your Knowledge 140
ConTEnTS i-14
