Lec 01 Introduction to Audit

Who prepares financial statements of company?

• Regulators for company

• Shareholders of company

• Lawyers of company

• Management of Company

Can Son of MD do audit of company ?

• Yes, as son is not working in company

• No, there will be no confidentiality

• Yes, as he is CA

• No, there is independence issue

Company is in loss of 50 lakhs ? Whether audit is applicable to pvt limited?

• No, as company is in losses

• Yes, its mandatory to all companies

• No, as it is private company

• Yes, losses are huge

Opinion should be given with

• absolute assurance

• reasonable assurance

• no assurance

• balanced assurance

Legal cases and many raid going against company

• Accept immediately as there is lot to learn

• Be careful about acceptance

• Ask government whether to do it

• Ask junior CAs to do it