Auditing a bank

Type :

Indian project

Pages :

37 pages

Format :

.doc

Published date :

04/13/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Introduction
Audit of banks
Provision relating to audit.
Audit and assurance for bank and financial institution.
Audit of insurance companies
Fundamental principles of insurance
Accounting principle for preparation of financial statement
Disclosure forming part of financial statement
General instruction for preparation of financial statement
Constraints - Managerial reports
Preparation of financial statement
Report of quality assurance team and salvage register
Revenue account
Bibliography

Abstract

Various people such as owners, shareholders, investors, creditors, lenders, government etc. uses the final account of a business concern for different purposes. All these users need to be sure that the final accounts prepared by the management are reliable. An auditor is an independent expert who examines the accounts of a business concern and reports whether the final accounts are reliable or not. The term audit is derived from the Latin term "audire" meaning 'to hear'. In early days an auditor used to listen to the accounts read out by the accountant in order to check them. auditing is as old as accounting. It was in use in all ancient countries such as Mesopotamia, Egypt, Greece, Rome, U.K. and India. The Vedas, Ramayana, Mahabharata contain references to accounting and auditing. Arthashsastra by Kautilya gives detailed rules for accounting and auditing of public finances. The Mauryas, the Guptas and the Mughals had developed and accounting and auditing system to control state finances. Thus, basically accounting and auditing had their origin in the need for the government to control the income and expenditure of the state and the army. The original object of auditing was to detect and prevent errors and frauds. With increasing number of companies, the companies' acts in different countries began providing for compulsory audit of accounts of companies. Thus in the U.K. audit of accounts of limited companies became compulsory in 1900. in India, the companies act, 1913 made audit of company accounts compulsory. With increase in size of companies the object of the audit also shifted to ascertaining whether the accounts were "true and fair" rather than "true and correct". Thus the emphasis was not on arithmetical accuracy but on fair representation of financial affairs. The international accounting standards committee and the accounting standards board of the institute of chartered accountant of India have developed standard accounting and auditing practices to guide the accountants and auditors in their day-to-day work.