Auditing BBA VI Sem BBA N 605 Unit 2nd Notes
UNIT -2 Internal Check System: Internal Control, audit Procedure: Vouching Verification of Assets and Liabilities. Audit of Limited Companies: Company AuditorAppointment, Powers, Duties and Liabilities. Auditor’s Report and Audit Certificate I NTERNAL CONTROL Internal control is the whole system of control established by the management for the proper conduct of various activities of the organization. It is not only internal check and internal audit but also the whole system of control financially and otherwise established by the organization in order to carry out the business in orderly and efficient manner. It is useful for the organization to safeguard the assets and serve the reliability of accounting records. In other words, it is the overall control adopted by the organization. Features: - 1) It is the overall control adopted by the management. 2) It comprises of plans, methods and procedures for the effective control of the operations of the business.