10 Mar 2017

What is an Audit?

What is audit?

What is an Audit?

Audit is an independent examination of financial statements of an entity that enables an auditor to expressan opinion whether the financial statements are prepared (in all material respects) in accordance with an identified and acceptable financial reporting framework (e.g. international or local accounting standards and national legislations)
This view of audit is presented by ISA 200 Objective and General Principles Governing an Audit of Financial Statements.

The phrases used; “to express the auditor’s opinion” means that the financial statements give a true and fair view or have been presented fairly in all material respects.
True and fair presentation means that the financial statement are prepared and presented in accordance with the requirements of the applicable International Financial Reporting Standards (IFRS) and local pronouncements/legislations.
What we can understand as the essential features of an audit from the above definition and explanation are as under:

• An auditor involves in examination of financial statements, the auditor is not responsible for the
preparation of the financial statements.

• The end result of an audit is an opinion to assist the user of the financial statements. Auditing
therefore relies heavily on professional judgment, not merely on the facts.

• The auditor’s opinion makes reference to “true and fair” or “fair presentations” but “true and fair”
is again a matter of judgment. It is not precisely defined for the auditor.

• In order to make the user of the auditor’s report able to feel confident in relying on such report, the
auditor should be independent of the entity. Independent essentially means that the auditor has no
significant personal interest in the entity. This allows an objective, professional view to be taken.
You will note that this is a wide concept of an audit which can be applied to any entity, not just to limited companies. However, in this course, we are concerned primarily with audits of limited companies (often known as statutory or external audits). Any other audit applications will be clearly indicated for you in the text.

Audits are of two types namely optional or private audits and statutory or compulsory audits. Basis for this classification is legal requirements with regard to conduction of audit.
Examples for private audits are audit of sole trading concerns, audit of partnership firm, etc., company audit can be taken as example for compulsory audits.

Differences between Private and Statutory Audit

Legal Requirements: Legal requirement is seen in case of statutory audits but not in case of optional audits.
Qualification: In case of statutory, auditor should have the qualification specified by the act concerned. For example: Company auditor`s qualification is specified by companies act. But in case of optional audits the question of qualification does not arise because the act with regard to optional audit is silent.
Rights, Duties, etc., of Auditor: In case of optional audit rights, duties, liabilities, etc., of auditor will be of Contractual nature. The contract which gets formed between auditor and client refers to all those things. There is no involvement of act. In case of statutory audits all such things will be of statutory nature concerned act determines all these things.
Conduction of Audit work: In case of optional audits, audit work takes place as per the agreement but in case of statutory audits, audit work will be conducted as per provisions of act concerned.
Alteration in Rights and Duties: In case of optional audits rights, duties etc of auditor can be altered by mutual understanding between auditor and client.
Report: In case of Optional audit report can be given at the choice of auditor. But in case of statutory audit report must be given as per requirements of concerned act.

15 Jan 2017

Punjab Public Service Commission Advertisement # 03-2017

Punjab Public Service Commission has published ADVERTISEMENT NO.03/2017 for various Posts, apply now before closing date 30-01-2017.

                            PPSC Advertisement No 03-2017

Accounts Officer (BS-17)
Public Relation Officer (BS-17)
Assistant (BS-16)
Private Secretary (BS-17)
Personal Assistant (BS-17)
Network Engineer
Hardware Technician
Database Administrator

Download Challan Form
 Last date of apply

Download Advertisement

11 Jan 2017

Punjab Public Service Commission Advertisement no 02-2017

Punjab Public Service Commission has published ADVERTISEMENT NO.02/2017 for various Posts, apply now before closing date 19-26-2017.

PPSC Advertisement No 02-2017



Download Challan Form
 Last date of apply

Download Advertisement

10 Jan 2017

FPSC Past and Model Papers

FPSC Past and Model Papers Published by Advanced Publishers, it includes FPSC Model and past Papers.
Advanced FPSC & Other Federal Model Papers
Added Features: Sample Model Papers for 2016, English, Mathematics, Arithematic, General Abilities Tests, Analogy Questions
New Revised & Updated Edition
M. Imtiaz Shahid
Advanced Publishers

Price Rs: 1000Order by SMS or Call: 03334799223 or visit website: urdu Bazzar

PPSC Past Papers

PPSC Past Papers and solved Papers by Advanced Publishers, this Past Papers books included  161 PPSC past papers and answers. 

AP Advanced Publishers PPSC Model Papers 2016 By M Imtiaz Shahid with Previous Solved Papers
M. Imtiaz Shahid
AP Advanced Publishers

Price Rs: 1000 

Call or SMS for Online order : 03334799223 Or visit Website: Urdu Bazzar

Cash on Delivery.

6 Jan 2017

Punjab Public Service Commission Advertisement no 01-2017

Punjab Public Service Commission has published ADVERTISEMENT NO.01/2017 for the Post of AUDITORS (TAXES WING) 3 Posts and ASSISTANT RESEARCH OFFICER 5 posts, apply now before closing date 19-01-2017.

PPSC Advertisement No 01-2017



Download Challan Form
 Last date of apply

Download Advertisement

4 Jan 2017

CSS Syllabus and Past Papers

CSS Syllabus and Past Papers + Solved MCQS from 2005 to date By Ilmi Publishers, it include the following contents.


  • Rules and Regulations
  • Complete Syllabus ( Compulsory & Optional Subjects)
  • Past Papers of Compulsory Subjects( 2000 to date)
  • Solved MCQs of Compulsory Subjects ( 2005 to Date)

Buy Now: Price Rs 350 

Contact Number: 0331-4913063    or visit: Urdu Bazzar                             0333-4799223

Like Page