Audit notes

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Madhavi (Querist)
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16 July 2010 Can anyone tell me how to self study auditing paper and LAW of PCC. I also need latest notes for both aduiting and law chapter wise so that i can clearly understand.My exams are in Nov 2010

Kindly help me pl

thanking you

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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11 August 2010 You will be surprised to know that Auditing and Law both are practical subjects.

Each theory subject ultimately leads to practical and each practical subject starts from theory.

An auditor conducts audit practically and on the basic of practical applications of law; advocates run their practice.

Right ?

After reading basic principles governing an audit; you should try to think how you would audit a particular situation.

Imagine you have a business and you have appointed some employees at your business to perform various business activities.

How you will check the activities of other ?

If you can say about it; you are fit to do auditing.

The important point to be kept in mind while conducting audit is not only you have to check the financial accuracy of the transactions recorded, but you have to check various legal compliances also which are applicable to the business.

So now-a-days; auditing and compliance of law go together.

While reading the subject of law; ask yourself whether it should exist or not ? Ask whether there should be provisions in law to penalize guilty persons or not ?

Take a simple example; you read Partnership Act. After reading some provisions or completing some topic; ask yourself whether Partnership Deed should be made or not so that each and everyone can know what are the terms and conditions decided between the partners.

The terms which are not pre-decided in the deed; are governed by the partnership act. Ask yourself; whether such types of provisions should be there or not.

One more thing; according to the partnership deed; the profits would be distributed between the partners in the books of account.

A typical situation : A sleeping partner's liability is also unlimited. Why ? One of the section of partnership tells : Business is either run by all or by one (or more partners) acting for all. That is the reason the sleeping partner is also responsible for all the acts done.

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