Role of Audit

Presented by :

GIRIJA SANKAR

JWM/OFMK

What is Audit?

Audit

The word has been derived from latin word AUDIRE means to hear

Audit practice existed even in ancient times

Materials account for 60% of cashflow and hence material has assumed significance in modern times.

Audit types WIP Audit Financial Audit Operations Audit Management Audit Performance Audit Cost Audit Internal Audit Social Audit C&AG Audit Safety Audit Security Audit

Audit points How effectively has it served the

consumer How have losses in storage been

minimised How has obsolescence been controlled How effectively has the purchase

intelligence been utilized How fruitfully has the manpower been

utilized Has the materiel function achieved its

objective How smoothly does the paperwork

system flow

Audit points Has the value of cost of carrying

inventory achieved Prima facie there are no

misappropriation or embezzlement Extravagant expenditure has not been

incurred The value of money spent has been

realised The accounts give a true and accurate

picture of the state of affairs in the company

Cost benefit of Audit Auditing involves lot of hard work Auditor carries a great responsibility on

his shoulder Auditor should submit his report after

verifying the controls and adequacy for improving the system

Auditing involves expenditure and hence it should be gainfully employed.