1. What is the difference between Internal Audit and External Audit?
“Main difference between these two is that internal audits are conducted by employees of a company while external audits are performed by external agencies that are not employees of the company.”
2. What is statutory audit?
“It means audit required by law opposite to internal audit. It is legally required examination of an organization’s annual accounts and financial records.”
3. What Does An Internal Audit Charter Contain?
“The main components of this charter are mission and responsibilities of the Internal Audit Department, scope of the Internal Audit activities of the Internal Audit Department, relationship and coordination with the External Auditor, Audit Plan and many other different points related to audit.”
4. How do you define Sundry Creditors?
“Sundry creditors come under the head of liability and they refer to companies or individuals to which money is owed.”
5. How you update your knowledge stay current on audit tools, techniques and programs?
“I believe continuous learning is very important to be successful now a day in professional life for all the professionals. So I always find and avail those opportunities which provide me enhance my field skills and knowledge. I attended seminars and training courses and most importantly keeping myself connected with internet because it is one of the easiest ways to stay up-to-date.”
6. Tell us as an auditor what procedure should you follow to check the errors and frauds?
“Well, auditor is responsible for detection and prevention of errors and frauds. For an auditor he should have reasonable skills and care in performing his duties. He should complete vouching and routine checking very carefully. He should check books of accounts and other financial matters properly.”
7. Tell us what is the objective of Web Audit?
“Basically web audit helps to get the best of web presence or you can say it’s a tool to analyze an existing web presence to facilitate performance improvements creating better online technical, structural and business delivery”
8. What is the importance of annual general meetings (AGM) for any organization?
“The shareholders appoint the auditors in annual general meetings to protect their rights.”
9. What is meant by Audit process?
“Audit process is related to examining of books of accounts and all other financial records, in order to verify any error and fraud and to report upon the facts regarding its financial operations.”
10. What is the difference between qualified and unqualified report?
“An unqualified report is issued by the auditor when the auditor has obtained the required satisfaction that the financial statements are free from any error and frauds and qualified is vice-versa.”
11. How important vouching is for the auditing process?
“Well I believe vouching is the essence of auditing. The purpose of vouching is to check and examine that there are no errors in the financial statements and no fraudulent payments are made.”