is statutory auditor able to verify the account that has been verified by an internal auditor? if yes then why? plz rply.....its urgent!!!!!!!!!!!!!!!
Lalit Kumar
(Vice President )
(2213 Points)
Replied 15 March 2011
Statutory Auditor has all the Powers and Rights to verify the accounts which are verified by Internal Auditor.. Even in Depth he can do can.. Cos he is the one who is to Report to the Shareholders, whereas Internal Auditor scope is oly limited to Report it to Mgmt.
prerna
(auditor)
(95 Points)
Replied 15 March 2011
SURE !!!! instead statutory auditors hs 2 do more depth study...than what internal auditor has done.....n do remember 1 thing.....statutory auditor r answerable to govt...if any query found.......not the internal auditor....
so nvr rely on internal auditor 100%
VICKY KARNANI
(STUDENT)
(304 Points)
Replied 15 March 2011
stat auditor has ful right to verify wrk done by internal auditor after al the he has to report to shareholders nd remember he can RELY ON DA SAME BT HE HAS TO EVALUATE THE WRK DONE B INT AUDITOR
CA ESHAN CHAKRAWARTI
(job)
(101 Points)
Replied 22 March 2011
the
external auditor intends to rely upon specific internal audit work as a basis
for modifying the nature, timing and extent of his procedures, he should
review the internal auditor’s work, taking into account the following factors:Handbook of Auditing Pronouncements-I
SA 610 IV-384
(a) The scope of work and related audit programmes are adequate for the
external auditor’s purpose.
(b) The work was properly planned and the work of assistants was properly
supervised, reviewed, and documented.
(c) Sufficient appropriate evidence was obtained to afford a reasonable
basis for the conclusions reached.
(d) Conclusions reached are appropriate in the circumstances and any
reports prepared are consistent with the results of the work performed.
(e) Any exceptions or unusual matters disclosed by the internal auditor’s
procedures have been properly resolved.
The external auditor should document his conclusions in respect of the
specific work which he has reviewed.
14. The external auditor should also test the work of the internal auditor on
which he intends to rely. The nature, timing and extent of the external
auditor’s tests will depend upon his judgement as to the materiality of the
area concerned to the financial statements taken as a whole and the results
of his evaluation of the internal audit function and of the specific internal
audit work. His tests may include examination of items already examined by
the internal auditor, examination of other similar items, and observation of
the internal auditor’s procedures.
rohit
(a)
(55 Points)
Replied 22 March 2011
statutary is mandatiry for every organisation and it is to be done once in a year.while internal audit is to being done many times during the year.moreover goverment recognizes only those accounts which are verified by statutory auditor.
Vineet Kumar Singh
(Accounts Officer in Bihar State Power (Holding) Co Ltd)
(264 Points)
Replied 22 March 2011
Statutory Auditor can rely upon the works performed by the Internal Auditors by checking the proper calculations, evaluations etc. but If the Stat Auditor has any doubt on the work of Internal auditor, the may verify all the accounts audited by the Internal Auditors.
Since Internal Auditor are the only representative of the Co itself appointed by the Co. Therefore Statutory auditor hace the right to verify the same.
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