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Relationship of Auditing with other Disciplines
Auditor has to review and evaluate the financial statements by providing an opinion. Therefore, he should have thorough knowledge about accounting concepts and principles.
Auditor deals with financial data and the amount that appears in financial statements. Hence, it requires knowledge of calculation procedure involved in computing various items, for example., depreciation, provision for bad debts, tax etc.
Auditor is also expected to have knowledge of statistical sampling for making meaningful conclusion.
Auditor requires knowledge regarding business and economic environment affecting the client. Thus, economic concepts are required to perform auditing in a meaningful way.
Audit of a business concern has to be undertaken with respect to conformity with law. Thus, an auditor should have sound knowledge of laws affecting the client.
In recent times, clients maintain their accounts in computer information system. Thus, working knowledge on computer is required for auditors to conduct audit in an effective way.
Auditor to understand and evaluate the financial statements in a better way should have knowledge of financial techniques.
Auditor has to deal with many personnel to conduct the audit efficiently. Hence, he should have the tact of getting along with people.
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