Internal Audit and Statutory Audit

HI Malini,

The scope of audit depends upon the purpose of audit like is it for claiming some exemption under IT Act or is for acquiring debt,etc

Internal audit is mainly for smooth functioning of the organisation, scope is  decided by the management of the organisation.

Scope for Internal Audit for both types of ENTITY will be decided by Management. They have to say in which area they r more concerned & which requires need of an AUDIT.

Scope for Statutory Audit will be covered by Income Tax & Companies ACT. In Case of Retailing unit of Agricultural goods we have to concentrate more as per Income Tax bec it has a Exemption in Tax Act. So we have to check details according to FORM for claiming Tax exemption in that it is stated which areas are to be checked & Reported.

Well i dun have  much info abt that form & Its contents.

In case of NGO concentrate on Sources of Income & where it is applied by that NGO.

and also check how DAY TODAY ACTIVITIES of NGO managed relating to FUNDS.

Hi Malini

The scope of Statutory audit is determined by Law, ICAI and Terms of Client. But terms of client cannot supercede Law & ICAI

The Scope of Internal Auditor is decided by Management.