2. Audit Definition = evaluation of a person, organization, system, process, enterprise, project or product. The term commonly refers to audits in accounting - similar concepts exist in project management, quality management, and energy conservation.
4. Verification Inspection, Observation, Enquiry, Computation, Analysis Final audit stage - verification of the assets and liabilities appearing in the balance sheet. Well established techniques for verifying specific assets and liabilities.
5. Verification Quality control process Evaluate product, service, or system complies with regulations, imposed at the start of a development phase. Development, scale-up, or production Internal process.
18. Procedures - Verification of Assets Ownership of assets such as land and buildings should be verified by examining the title deeds. Physical verification is the responsibility of the management Ensure that it is carried out at appropriate intervals in order to ensure assets are in existence. Examine the instructions given by the management for physical verification and working papers of physical verification. The opening balance is to be verified from schedule of fixed assets Assets acquired during the year or improvements done during the year
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20. Procedures - Verification of Liabilities Verify existence of liabilities shown in the balance sheet Verify the correctness of the money amount of such liabilities Verify the appropriateness of the description given in the accounts and the adequacy of disclosure Verify that all existing liabilities are actually included in the accounts
93. Difference Verification Establish truth End of the year Based on personal & documentary evidence Includes Valuation Certifies correctness Done by AUDITOR Vouching Examines the entries During whole year Based on only documentary evidence only Not Concerned with Valuation Certifies correction of records Done by ACCOUNTING DEPARTMENT
