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5) Which type of Audit has adapted? Ans: Mr. Raghunath H.

suryarao have adapted internal audit for auditing Reliance Communication.

What is internal audit? Ans: Internal audit is carried out by employees of the company. The scope of internal audit may extent beyond the financial accounts, other inquiries or investigation related to losses. Wastages, performance etc. can be undertaken. Internal audit is carried out whenever management finds it necessary. Internal auditor may not be a Chartered accountant Internal auditor is accountable to the management.

Objectives of internal audit:

To determine the reliability and integrity of information; (i.e. evaluating the internal control systems and the integrity of financial and operating information produced by those systems). To determine whether compliance exists with policies, procedures, laws, and regulations. To determine if assets are safeguarded and verify the existence of those assets. To appraise the economy and efficiency of resource utilization (i.e. physical, monetary and most importantly staff). To review operations or programs for consistency with established management goals and objectives.

To assist members of our organization in the effective and successful performance of their responsibilities by providing them with analyses, appraisals, recommendations, and other pertinent information concerning the activities being reviewed.

6) What is Audit period? OR What is financial year in which audited? Ans: The financial year of Reliance Communication audit by Mr. raghunath H. Suryarao is from 1st April 2010-31st march2011.

7) Scope of audit? Ans.: The scope of audit in Reliance Communication was Accounts Payable- material Movements.

What is scope of audit?


Definition of audit scope

Audit scope, defined as the amount of time and documents which are involved in an audit, is an important factor in all auditing. The audit scope, ultimately, establishes how deeply an audit is performed. An audit scope can range from simple to complete, including all company documents. Audit scope limitations can result from the different purposes listed below.

Meaning of audit report:

Audit scope means the depth of an audit performed. Audits are performed for several purposes: regular "checkups" of company records, to check for internal errors, for the purpose of finding fraud inside a company, for the purpose of finding fraud in another company, or even for the purpose of finding tax income and other offenses against IRS law. Due to this fact, audit scope and objectives have a different meaning depending on the person performing the audit as well as the reason behind the audit. If the audit is being performed for regular internal processing it will generally only have a scope which includes the latest period which has passed. This is because the previous period probably already has been audited.

If the audit is being performed to find fraud, however, it will generally have a deeper audit scope. It may include records from years or even decades ago. This is due to the fact that, at the very least, a violation of company policy occured. Dedicated auditors, either company employees or hired auditors, spend their entire career in this. They often spend much more time and look far deeper in this process. IRS auditors may even look at documents which were created during the birth of a company. This is because they are trying to find errors which result in increased income for the government as well as civil or criminal charges. A company will want to keep pristine records to assure that the auditor does not look deeper than the audit scope documents which a company can support.

8) sampling Audit OR Complete Audit? Ans.: Mr. Raghunath hav e adapted sampli9ng audit method in Reliance Communication.

Meaning of sampling audit:

Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic of the balance or class.1 This section provides guidance for planning, performing, and evaluating audit samples.
9) Which procedure have Adapted for sampling? OR Sampling Method/ Technique Ans.: Mr.Raghunath H. Suryarao have selected random selection Sampling.

Meaqning of Random Selection method:

Simple random sampling refers to any sampling method that has the following properties.

The population consists of N objects. The sample consists of n objects. If all possible samples of n objects are equally likely to occur, the sampling method is called simple random sampling.

An important benefit of simple random sampling is that it allows researchers to use statistical methods to analyze sample results. For example, given a simple random sample, researchers can use statistical methods to define a confidence interval around a sample mean. Statistical analysis is not appropriate when non-random sampling methods are used. There are many ways to obtain a simple random sample. One way would be the lottery method. Each of the N population members is assigned a unique number. The numbers are placed in a bowl and thoroughly mixed. Then, a blind-folded researcher selects n numbers. Population members having the selected numbers are included in the sample.

10) Auditor opinion? Ans.: Mr.Raghunath H. Suryarao have given unqualified opinion to Reliance Communication.

11) Type of Report? Ans.: The report was Internal Auditor report.

12) Whether auditor ditected any errors or fraud? Ans.: Auditor have not ditected any errors or fraud. Types of errors:Errore are having two types: 1) Clerical Errore 2) Errore of Principle Clerical errore aore also classified into four sub- parts : a) Error of Commision b) Errore of ommission It is also classified into two sub- parts I. Complete Ommission II. Parttial commission c) Compensatinjg errore d) Errore of Dublication

An opinion is said to be unqualified when the Auditor concludes that the Financial Statements give a true and fair view in accordance with the financial reporting framework used for the preparation and presentation of the Financial Statements. An Auditor gives a Clean opinion of Unqualified Opinion when he or she does not have any significant reservation in respect of matters contained in the Financial Statements. The most frequent type of report is referred to as the Unqualified Opinion, and is regarded by many as the equivalent of a "clean bill of health" to a patient,[2] which has led many to call it the Clean Opinion, but in reality it is not a clean bill of health, because the Auditor can only provide reasonable assurance that there are no material misstatements within the Financial Statements.[3] This type of report is issued by an auditor when the financial statements presented are free of material misstatements and are represented fairly in accordance with the Generally Accepted Accounting Principles (GAAP), which in other words means that the company's financial condition, position, and operations are fairly presented in the financial statements

Vote of thanks: We would like to thanks to sonam mam for this golden opportunity ande for her logistic support, guidance cooperation which help us to enhance our knowledge about that topic and to make this project successful.