Asad's Business and Technology Articles

In very simple words auditing is the evaluation of any 'Person'. In legal terms person means; An individual , Association of Persons (AOP) and a Company. But the students of Professional accountancy like CPA, C.A and Management Accountants mostly concentrates on auditing and involved in Auditing activities like; Financial auditing, cost auditing and Internal control. What is Auditing ? Every beginner ask from his teacher or his friend. Basically all authors define auditing in the same manner, but different professional bodies have their different modified definitions, for example one for understanding:  International Auditing Guidelines used to define Audit as:  " An audit is the independent examination of financial statement or related 'information of an entity', whether profit oriented or not and irrespective of its size, or legal form when such an examination is conducted with a view to express an opinion thereon". This definition comprises on: 1.In...

Every Business have objectives and goals, to achieve these goals organisation must be so designed to have proper internal control on it functions and activities. The question is what is Internal Control ? Auditing Guideline "Internal Control" issued by Institute of Chartered Accountants of England and Wales defines internal control as: "The whole system of controls, financial or otherwise, established by the management in order to carry on the business of the enterprise in an orderly and efficient manner, ensure adherence to management policies, safeguard the assets and secure the completeness and accuracy of the records. The individual components of  an internal control system are known as "Internal Controls" or "Controls" ". PIA-Internal Contol System  Explanation:-  It is the control of whole system, whether it is related to financial record or other areas like technical or legal etc. The rules and procedures of control are set by high...