We have great pleasure in presenting the text book on Advanced Accountancy for M.Com Semester IV students of KBC North Maharashtra University. The book has been written in student friendly approach, each chapter contains sufficient theory to acquire a through understanding of the concepts. This book delivers into the intricate world of audits, providing valuable insights and practical knowledge to auditors, professionals, and students alike. Through a series of lectures, we explore the audit procedures, regulations, and reporting requirements specific to different industries.
Unit 1 focuses on the audit of banks, encompassing the salient features of relevant enactments and the approach to bank audit. We examine the verification of assets and liabilities, including cash, investments, loans, and non-performing assets. Additionally, we delve into the audit of income and expenses, profit transfers, and dividends. In Unit 2, we shift our attention to th e audit of co-operative societies, analyzing the unique features and provisions outlined in the Maharashtra State Co-operative Societies Act. We explore the intricacies of auditing co-operative societies and discuss the essential components of an audit report for such entities. Unit 3 explores the audit procedures specific to specialized units such as hospitals, hotels, cinema halls, and hire-purchase and leasing companies. We delve into the distinct aspects of auditing each of these entities and highlight the key considerations and procedures to ensure effective audits. Unit 4 introduces the concept of Information System Auditing (IS Auditing) and emphasizes the need for auditing information systems. We cover the objectives, planning process, and evaluation of controls in an information system audit, including management controls, operational controls, organizational controls, and application controls. Unit 5 delves into the realm of management audit, providing an understanding of its nature, objectives, scope, and importance. We discuss the merits and limitations of management audit, drawing a clear distinction between management audit and statutory audit. Furthermore, we explore the qualifications, duties, and role of a management auditor, along with guidelines for drafting reports that enhance managerial effectiveness. Finally, in Unit 6, we unravel the intricacies of preparing audit reports for limited companies. We examine the contents and requirements of audit reports as mandated by the Companies Act, Companies (Audit and Auditors) Rules, and the CARO 2016. We also explore the nature of opinions expressed by auditors and the significance of notes to accounts about study of SA 700 and SA 800.