What is the key element of assurance?

3. What is the key element of assurance?

Ans: (1) Three people or groups of people.

(2) subject matter

(3) Suitable criteria

(4) Sufficient appropriate evidence to

support assurance evidence or

opinion

(5)A written report

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Evaluative Criteria for Good Internal Check

Evaluative Criteria for Good Internal Check A good internal check system must provide in-built checks and balances while the operations are being performed. To achieve this end,the following control mechanism may be introduced : Division of Work :No one should be allowed to have right to perform the work from origin to end. For example,a transaction of sale may have to be split into display of article by a staff,the preparation of invoice by another the receipt of cash against the invoice by a third clerk, the delivery of article against the proof of receipted invoice by another clerk,checking of outward movement of article against delivery order by a clerk and so on. Job rotation : No individual clerk should be allowed to occupy a particular area of operation for long. Familiarity with and exclusiveness in a position offers a person greater flexibility to attempt manipulation with the system. Authority levels : There must be clear cut authority levels for according sanct...

What are the limitations of assurance?

5.What are the limitations of assurance? Ans: The fact that testing is used The fact that accounting systems have inherent limitations Audit evidence is persuasive rather than conclusive Assurance provide would not test every items in the subject matter Subjective and professional matter Use estimates

Basic elements of Auditor’s Report

Basic elements of Auditor’s Report The auditor's report should incorporate the following elements in it. They are - Title Addressee Identification of the financial statements audited A reference to the auditing standards,practices followed Expression or disclaimer of opinion on tje financial statement Signature Auditor's address The date of the report

Accounting and Information Systems Of BU

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