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The person who checks the accuracy of the books of accounts and expresses an opinion on the financial statements of the business concern is called as an Auditor. The person who is a Chartered Accountant holding Certificate of Practice from the Institute of Chartered Accountants of India is referred to as an Auditor. Auditors enjoy a distinctive professional status in the society because of specialized functions of auditing.
The following are the functions or basic aspects to be covered by the auditor in the course of audit. They are:
1. Examination: Auditor should examine the accounting system to ensure about their appropriateness.
2. Books: Check the books of accounts to ensure the arithmetical accuracy.
3. Evidence: The auditor should examine documentary evidence to support the entries in the books of accounts.
4. Full Inclusion: Check whether all entries in the books of accounting have been taking while preparing financial statements.
5. Properness: Examine whether information contained in financial statements is proper and it does not contain any fraudulent entry.
6. Verification of Assets and Liabilities: Check the existence, valuation and disclosure of all assets and liabilities in financial statements.
7. Statutory Compliance: Verify the compliance of financial statements with the relevant statutory authorities.
8. Disclosure: Examine whether the information in financial statements is disclosed properly as per accounting principles.
9. Truth and Fairness: Check whether financial statements represent a true and fair view of profit or loss and of assets and liabilities of the business concern.
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