Auditing now a days fully guided by the standard set by Institute of Chartered Accountants of India. So, the other normal auditing practices that are being still used as process or custom is not encouraged. This article is primarily for students who are not persuing Chartered Accountancy course , ie persuing other courses related to finance to give a befit idea and grasp.
In many colleges and institutions where commerce subjects are being treated is found to use the old and traditional auditing practices for learning. But in real life everything is now to be done according to standard set by ICAI.
Standard 1 , is given to have a clear idea of basic principal which governs auditor’s professional responsibilities, and should be strictly followed whenever a audit is carried out.
Here are the principal in brief...
1. Integrity , objectivity, and independence :
Integrity: Straightforward, honest and sincere.
Objectivity: stick to the main objective, means he/she should know the scope and perform to achieve this.
Independence: Must be free of any interest in the auditing entity or if it has , it must be disclosed prior to audit.
2. Confidentiality : Otherwise than client’s permission or instruction from competent legal authorities , audition should not disclose any information he/she found in the course of audit regarding client and clients business. In the course of audit , auditor encounters sensitive information of clients, that privacyshould be honored.
