Competitive Exams Are audit files the property of auditor?

This fact is very important in real situation whether audit files are the property of auditor or not. There are different thoughts on this topic. Some time customers claims that these papers should be in their custody because auditor is the agent of businessman; he deals with bank, directors of other companies or creditors as his agent.

But auditor also claims that this paper should be in their custody because, these papers are created by them and their employees during the work of audit. Second, these papers and files are so important for auditor because if some one Charges that he did not perform his duty well, then auditor can show these files and can protect his side.

This dispute has been solved by the case of syklosnchi V/s bright gram and company (1938). In this case judge said that all the audit files have the property of auditor. Auditor are entitled of these files and they work independent as the professional not as the agent of company

Are you going for audit for any company accounts?

Remember following points before auditing of companies account:

  1. When you reach the company office, at this time make your face as very serious and behave as you are officer of audit.

  2. Never show, the company's employees that you are enquiry the fraud of accounting. Because you are not deductive and your professional work is to audit not to do doubt on employees.

  3. You have the power of demanding evidence of any journal entry in the books of company. So use this power.

  4. If you find any fraud in the books of accounts, then do not make responsible to all accounts department. Go in the depth of this case. Never show other if you get content-fraud in the books of accounts of company. Declare after completing the audit procedure and mention effect and part of accounts in which fraud is committed before doing this take care the interests of company.

  5. If you are appointed as internal auditor of any company, then keep regular audit so that when independent audit will be done, all work in books of accounts according to rules and regulations of accounting so that you feel proud on your internal auditing.

  6. According to my thoughts, in the accounting field there is 90% cause of mistakes in accounts and 10% is the cause of fraud, so never see always accountant as doubted personality.

  7. Accountants should also corporate with chartered accountants because both coordination and co-operation can easily complete the complicate process of auditing.

  8. In my training as auditor I have visit so many companies for auditing their accounts. I always checked basic rules which applied in these accounts. So Chartered accountant must know up to date PPF, EPF, GRATUITY, income tax rates related to that company, excise rules and custom rules

  9. When you are writing your audit report, explain full detail if companies accounts and financial reports are not giving true and fair view of company's revenue and financial position

  10. Before doing audit of company accounts, Chartered accountants must see also amendments in Company laws, If it is Indian company, Indian company law will apply if there is MNC then see the company laws of country where its head office is situated.

What can Chartered accountant in the field of accounting

Today area of accounting is spreading very fast. Jobs is also increasing very fast in the field of accounting. At this pin point what can do a C. A. Or A professional accountant in the field of accounting. The answer is not so easy because only doing auditing work or making accounts and calculating some reports have become very traditional or classic.

If you want to become modern accountant or advance chartered accountant then read this article very seriously.

  • He should come forward to take online accounting & auditing like as challenge.

  • Today C. A. Can now take the responsibility Accounting Process outsource and its small name is APO, it is also get popular like BPO.

  • They can become good teacher of accounting because their deep knowledge should be benefited to a large community.

  • They can also start their online Accounting education website where they can share their experience and knowledge with whole world. They can also do some marketing in this way for growing and developing their business

Accounting Fraud in Satyam Company

Only for material money, Chartered Accountants like Gopalkrishan and Shri Nivas taluri are putting stigma to great Accounting Education. It is the duty of every Indian accountant to develop India with accounting education but what we are seeing that they are using accounting education for doing accounting Scams. Still enquires and investigation is continue but this is also bad for Indian Economy because, Sensex of Satyam Computer's Shares had fallen down 78% after reaching this Scam news in Indian Share market. In this accounting Scams two facts came in existence:

  1. B. Ramlinga Raju accepted that he showed 13000 excess numbers of employees over actual numbers of employees in Satyam Computers and he was getting 20 Crores Rupees every month with this ghost employee's accounting.

  2. Finance Officer of Satyam Computer Company Shri Nivas has done 7800 Crores of Rs. Accounting Scam.