CAT - T8

In order to control the activities of the business and have operations running effectively management is responsible to have controls in place. Without controls accountantability will not be possible. One of the ways by...

Primary responsibility to prevent and detect fraud is upon management or those who are charged with an authority of management oversight (also known as those charged with governance). To achieve this objective it is...

Limitations mean restrictions or factors that limit the effectiveness of audit engagement and limits the auditor to restrict only to provide reasonable assurance. Most of the time when we refer to limitations of external audit...

We must be clear that auditor is neither expected nor required by the International Standards on Auditing to provide absolute assurance i.e. auditor is not expected even to put an effort to be able...

Doing day to day business involves carrying out numerous activities of different nature. It involves all kinds and sorts of business transactions. Some of these activities gets accounted for and some are simply dealt...

A credit note is a source document providing evidence that a credit entry has been made in the financial records for specific reason which is explained on the face of this business document. Credit note...

Internal control system is implemented by the management or those charged with governance to assure that entity's objectives regarding reporting, compliance with applicable laws and effectiveness and efficiency of operations is achieved. However, this...

For an engagement to be an assurance engagement five elements needs to be present which are as follows: Existence of three party relationship i.e. practitioner, responsible party and the intended users Subject matter Criteria Collecting sufficient appropriate audit...

It is the responsibility of the auditor to obtain reasonable assurance by conducting audit engagement and expressing his opinion in the audit report. This expression of opinion results in reasonable assurance which is conveyed...

Inherent limitations are such features of audit that constrains the auditor to obtain absolute assurance. It is because of these inherent limitations of audit the practitioner cannot assure the users of financial statements that...