Please delineate Compliance and Substantive procedure of Audit. in detail.
Thanks in advance.
CA-ASPIRANT (CA-STUDENT ) (650 Points)
12 May 2009Please delineate Compliance and Substantive procedure of Audit. in detail.
Thanks in advance.
CA Swapnil
(job )
(1205 Points)
Replied 12 May 2009
Originally posted by :Amritesh | ||
" | Please delineate Compliance and Substantive procedure of Audit. in detail. Thanks in advance. |
" |
Compliance Procedures are tests designed to obtain reasonable assurance that those internal controls on which audit reliance is to be placed are in effect
·The auditor needs to ensure that internal control exist and that the internal control is operating effectively and being operating continuously throughout the period under audit to ensure that they can be relied upon.
·In summary, by doing Compliance Tests, the auditor can then able to ascertain the existence, effectiveness and continuity of the internal control system.Compliance Procedures are tests designed to obtain reasonable assurance that those internal controls on which audit reliance is to be placed are in effect
·The auditor needs to ensure that internal control exist and that the internal control is operating effectively and being operating continuously throughout the period under audit to ensure that they can be relied upon.
·In summary, by doing Compliance Tests, the auditor can then able to ascertain the existence, effectiveness and continuity of the internal control system.
CA Swapnil
(job )
(1205 Points)
Replied 12 May 2009
CA-ASPIRANT
(CA-STUDENT )
(650 Points)
Replied 12 May 2009
My understanding after reading your explaination is :
Compliance procedure means test designed by the auditor to know how much we may rely upon the internal control system of the organisation.
Am i right or not?
If right, please let me know these tests.
CA Swapnil
(job )
(1205 Points)
Replied 12 May 2009
these procedures include tests requiring inspection of documents supporting transactions to gain evidence that controls have been operating properly.for eg the auditor may see that all documents are properly authorised.
CA Swapnil
(job )
(1205 Points)
Replied 12 May 2009
Originally posted by :swapnil shah | ||
" | these procedures include tests requiring inspection of documents supporting transactions to gain evidence that controls have been operating properly.for eg the auditor may see that all documents are properly authorised. | " |
in general the auditor has to assure himself that all internal controls on which he has placed reliance are in effect.......
CA-ASPIRANT
(CA-STUDENT )
(650 Points)
Replied 12 May 2009
As per your discripttion , inspection of document i.e properly authorised or not fall under substantive procedure.
How can compliance test include inspection of document.
geetha parthasarathy
(nil)
(29 Points)
Replied 18 October 2012
what is the substantive procedure for auditing finance firm and advertising in particular by a audit intern