Characteristics of investication

Duties of Company Auditor; The Companies Act, 1956.

1.Object 2.scope 3.critical examination
 Section 227: Duty to give report.
4. no specific rules 5. Pre- concived notion
 Section 165: Duty to certify statutory report.
6. involving personal interview 7.investication
 Section 240: Duty to assist government inspector.
Report 8. Qualification of an investigatior
 Section 58 (A) and 58 (B): Duty with regard to public
Objectives of investication deposits.

1. Business purchase 2. Prospector investication  Section 62 and 63: Duty to certify prospectus.
3. Profit forcast 4. Investication for proposal
 Section 227 (1A): Duty to conduct an inquiry with regard
to matters mention in the section.
Type of internal audit
Rights of Company Auditor; The Companies Act, 1956.
1. Financial audit 2. Operational audit
 Rights to access the books and records.
3. Managerial audit 4. Compliance audit
 Right to get explanations from company staff.
5.system audit
 Right to receive notice of general meetings.
Cause of depreciation
 Right to visit branches.
1. Wear&tear 2. Exhaustion 3. Depletion
 Right to seek legal and technical advises.
4. deterioration 5. Passage of time 6. Obsolence
 Right to claim remuneration.
7.weather and accidental elements
 Right to refuse to commence the audit.
Methods of calculating depreciation  Right to question the board.

1. Straight line method 2. Written down value method 3.  Right to qualify his report.
Sinking fund method
 Right of indemnity.
4. Depreciation fund method 5. Insurance policy method 6.
Annuity method

7. sum of digits method 8. Revaluation method 9. Depletion

method

10. Machine hour rate method