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Project Report On A CA Firm
Project Report On A CA Firm
ON
THE STUDY OF AUDITING FUNCTIONS WITH
REFERENCE TO NEOSIS ADVISORY PVT. LTD.
Submitted to:
Submitted by:
Neela Kohli
Designation
11514101712
ACKNOWLEDGEMENTS
A lot of effort has gone into this training report. My thanks are due to many
people with whom I have been closely associated.
I would like all those who have contributed in completing this project. First of all, I
would like to send my sincere thanks to MRS. PRABHJOT KAUR for her helpful
hand in the completion of my project.
I would like to thank my entire beloved family & friends for providing me monetary
as well as non monetary support, as and when required, without which this
project would not have completed on time. Their trust and patience is now
coming out in form of this thesis.
STUDENTS UNDERTAKING
I hereby certify that this is my original work and it has never been submitted
elsewhere.
CONTENTS
S. No
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Description
List of Tables
List of Figures
Executive Summary
Certificate of completion
Introduction to Topic
Objectives
Literature review
Research Methodology
Analysis & Interpretation
Findings & Inferences
Limitations
Recommendations and Conclusion
Appendices
Bibliography
LIST OF TABLES
Page No.
LIST OF TABLES
S. No
Table title
Page No.
1.
EXECUTIVE SUMMARY
CERTIFICATE OF COMPLETION
This is to certify that Neela Kohli, pursuing V semester (B) (M) from Jagannath
International Management School, Kalkaji, has completed her project on the topic
Study on Auditing Functions with reference to NEOSIS ADVISORY PVT LTD.
under
my
Project guide:
Mrs. Prabhjot Kaur
guidance.
Her
work
is
appreciable.
CHAPTER I
INTRODUCTION TO THE TOPIC
standards for both assurance and consulting work. Public sector organisations
are likely to follow internal auditing standards and guidance set by HM Treasury
and other public sector related bodies such as the Chartered Institute of Public
Finance and Accountancy (CIPFA).
Internal audit
Staffing internal audit is a joint exercise that includes input from the audit
committee and management. Several factors such as an organizations size,
complexity, level of risk and geographic diversity can infl uence decisions
regarding the level of internal audit certifi cation that may be desired.
Selection criteria
Audit committees and management might consider the following factors in staffi
ng an internal audit function:
A strong leader Internal audit leaders (often called chief audit executives or
directors of internal audit) must not be afraid to bring potential problems to light.
Reporting relationships Regardless of its defi ned reporting relationship to
management and the board,1 internal audit should have frequent, open and
direct lines of communication with the audit committee, and the freedom to
address meaningful organizational risks.
Need for specialists to deal with complex or diffi cult transactions.
Geographic diversity Organizations with wide geographic reach may
benefit from having internal audit personnel located near significant operations.
Form of compensation fosters appropriate focus on audit quality.
Objectivity or independence Internal auditors should be familiar with the
subject matter, but should not be so closely tied to the area that their neutrality is
impaired.
Audit committee considerations
To ensure that the organizational framework for the internal auditing function is
comprehensive and balanced, the audit committee should consider the following
three areas.
Internal audit philosophy
Corporate accountability and governance necessitate an ongoing appraisal of the
entitys auditing philosophy. Some internal audit functions focus exclusively or
primarily on operations, while others extend their focus to fi nancial reporting.
The audit committee and management should:
understand and agree with the operating philosophy, and
be confi dent that internal audit has appropriately skilled resources to execute
on the chosen philosophy.
Internal audit independence
Appropriate levels of independence enable internal audit to design and execute
audit procedures in all necessary areas and fully support findings and
recommendations to management and the audit committee or the full board.
COSOs Guidance on Monitoring Internal Control Systems contains some helpful
direction regarding the broad concept of objectivity.
Objectivity refers to the extent to which evaluators and information sources can
be expected to perform an evaluation or provide information with no concern
about possible personal consequences and no vested interest in manipulating
the results for personal benefit or self-preservation. Personal integrity is a
primary consideration in assessing objectivity, but other, more easily observed
factors include compensation incentives, reporting responsibilities, personal
relationships and the degree to which individuals might be otherwise affected by
the results of monitoring.
Structure and logistics
Organizations, depending largely on their nature, size and complexity, have
different internal auditing needs. The audit committee should review the plans
and budgets of the internal auditors in relation to the entitys auditing needs and
potential auditing benefits.
Equally important, the committee should review the organization chart of the
internal auditing function to determine that it is balanced in accordance with the
audit plan. An illustrative organization chart shows how the internal audit function
of a multinational enterprise might be organized on a centralized basis.
values
and
goals
are
established
and
communicated,
the
The overall status and remit of internal audit should be formalised in terms of
reference, often referred to as an audit charter, and approved by the board,
normally through the audit committee. These should then be communicated to
relevant people within the organisation. Internal audits terms of reference or
charter should provide clarity about its:
Strategy and objectives;
Role and responsibilities within the organisation;
Scope of work;
Accountability to the audit committee;
Reporting lines for line management purposes;
Accessibility to the board and the audit committee; and
Unfettered access to all information, people and records across the
organisation.
The terms of reference should make it clear that internal audit should not be put
in a position where it has to review its own work.
Audit approach
The audit approach taken by internal audit will largely depend on its remit and the
objective assurance that the board requires.
Audit plans
Internal audit should, on at least an annual basis, develop a plan of work that it
will cover to provide the required assurance to the audit committee and the
board. This plan should retain some flexibility to enable internal audit to respond
to new issues as they arise. The audit plan should identify how internal audit will:
Obtain assurance on the effectiveness of the governance and risk management
processes;
Support the development and maintenance of governance and risk
management processes;
Challenge the boards assessment of risk and the controls in place to manage
the identified risks;
Evaluate and test the effectiveness of controls in place to manage the identified
risks; and
Co-ordinate with other sources of assurance, e.g. health and safety, external
auditors, etc.
In setting the audit plan, there should be effective dialogue between the audit
committee, management, internal audit and external auditors to ensure that there
is adequate assurance from all sources to cover all key business risks. Audit
committees need to make clear their expectations that both internal and external
auditors will communicate effectively with each other about how their respective
audit plans and objectives will cover these key business risks. The IIAs
Performance Standard 2201, Planning Considerations, states that internal
auditors, in planning their work, should consider the objectives of the activity
being reviewed, the risks related to that activity, the adequacy and effectiveness
of the activitys risk management and control systems and the opportunities for
making significant improvements to those systems.
Skills and resources
Internal audit needs to have adequate budget and resources to complete its work
plan and fulfil its remit. In achieving appropriate coverage of the agreed risk
areas, it will need to have staff with the right skills and expertise. It may also
require access to specialist resources which might include using staff from
elsewhere in the organisation or external resources.
Sourcing of internal audit
There is no requirement for internal audit to be provided by an organisations own
employees. The organisation may choose to have the service provided fully from
within, may outsource it entirely to an external provider or may consider a mixture
of internal and external sourcing. However the service is provided, it needs to fit
into the overall remit and scope that has been set and its effectiveness needs to
be monitored and reviewed on a regular basis by the audit committee.
External audit
Selecting and evaluating the external auditor
Few decisions that audit committees make are more important than the
recommendation or selection of external auditors.5 Audit committee members
should, therefore, be diligent in selecting the right auditor and in evaluating the
auditors performance throughout the engagement. Exhibit 2 includes some
selection criteria for audit committee consideration. These same criteria also can
be used to evaluate the auditors performance during or at the end of an audit.
External auditor selection/evaluation criteria
Industry experience
experience.
Support network available Audit committees should be confident that the
within the external auditing external auditor has access to specialized technical
firm
Independence
Reasonableness of audit The audit committee should be confi dent that the
plan
adequacy or excessiveness).
Audit committees should be confi dent that the audit
partner has the fortitude to deliver constructive
criticism. Over time in executive session ask
open-ended questions about managements and/or
internal audits performance, and evaluate the
partners demeanor and response. To evaluate how
well a prospective auditor communicates diffi cult
Form and frequency of The audit committee should expect frequent, open
communications
auditor
communication
with
management
and
With management
Immediate
communication
of
issues
like
particular
problem.
Proper
interim
exchanges
about
the
status
information
usually
prevent
of
requested
auditor
downtime,
percent
involvement
Usefulness of
recommendations
Team chemistry
Balancing client
healthy skepticism.8
Accounting
Auditing is a vital part of accounting. Traditionally, audits were mainly associated
with gaining information about financial systems and the financial records of a
company or a business.
Financial audits are performed to ascertain the validity and reliability of
information, as well as to provide an assessment of a system's internal control.
The goal of an audit is to express an opinion of the person / organization /
system (etc.) in question, under evaluation based on work done on a test basis.
Due to constraints, an audit seeks to provide only reasonable assurance that
the statements are free from material error. Hence, statistical sampling is often
adopted in audits. In the case of financial audits, a set of financial statements are
said to be true and fair when they are free of material misstatements a concept
influenced by both quantitative(numerical) and qualitative factors. But recently,
the argument that auditing should go beyond just true and fair is gaining
momentum. And the US Public Company Accounting Oversight Board has come
out with a concept release on the same.
Cost accounting is a process for verifying the cost of manufacturing or producing
of any article, on the basis of accounts measuring the use of material, labor or
other items of cost. In simple words, the term, cost audit means a systematic and
accurate verification of the cost accounts and records, and checking for
adherence to the cost accounting objectives. According to the Institute of Cost
and Management Accountants of Pakistan, a cost audit is "an examination of
cost accounting records and verification of facts to ascertain that the cost of the
product has been arrived at, in accordance with principles of cost accounting.
An audit must adhere to generally accepted standards established by governing
bodies. These standards assure third parties or external users that they can rely
upon the auditor's opinion on the fairness of financial statements, or other
subjects on which the auditor expresses an opinion.
The definition for Audit and Assurance Standard AAS-1 by the Institute of
Chartered Accountants of India (ICAI): Auditing is defined as a systematic and
independent examination of data, statements, records, operations and
Integrated audits
In US audits of publicly traded companies are governed by rules laid down by
the Public Company Accounting Oversight Board (PCAOB), which was
established by Section 404 of the SarbanesOxley Act of 2002. Such an audit is
called an integrated audit, where auditors, in addition to an opinion on the
financial statements, must also express an opinion on the effectiveness of a
company's internal control over financial reporting, in accordance with PCAOB
Auditing Standard No. 5.
There are also new types of integrated auditing becoming available that use
unified compliance material (see the unified compliance section in Regulatory
compliance. Due to the increasing number of regulations and need for
operational transparency, organizations are adopting risk-based audits that can
cover multiple regulations and standards from a single audit event. This is a very
new but necessary approach in some sectors to ensure that all the
necessary governance requirements can be met without duplicating effort from
both audit and audit hosting resources.
Assessments
The purpose of an assessment is to measure something or calculate a value for
it. Although the process of producing an assessment may involve an audit by an
independent professional, its purpose is to provide a measurement rather than to
express an opinion about the fairness of statements or quality of performance.
Auditors
Auditors of financial statements can be classified into two categories:
The most used external audit standards are the US GAAS of the American
Institute of Certified Public Accountants; and the ISA International Standards on
Auditing developed by theInternational Auditing and Assurance Standards
Board of the International Federation of Accountants.
Internal auditors are employed by the organizations they audit. They work
for government agencies (federal, state and local); for publicly traded
companies; and for non-profit companies across all industries. The
internationally recognized standard setting body for the profession is the
Institute of Internal Auditors - IIA (www.theiia.org). The IIA has defined internal
auditing as follows: "Internal auditing is an independent, objective assurance
and consulting activity designed to add value and improve an organization's
operations. It helps an organization accomplish its objectives by bringing a
when the firm lacks sufficient expertise to audit certain areas, or simply for
staff augmentation when staff are not available.
Risk is inherent in the decisions that an organisation takes to manage and run
its business and in the business processes established to assist in the
achievement of its business objectives. Changes in the way organisations carry
out their normal activities resulting from, for example, expansion of the
business or changes in the regulatory framework, can place enormous strain
on an organisations control mechanisms and become major sources of risk.
That is why establishing, implementing and embedding effective risk and
control elements of the overall corporate governance framework are of
fundamental importance to all organisations.
Internal audit can play an important assurance role in an organisations
governance processes, particularly in the area of risk management and control.
In many organisations, the expectations placed upon internal audit have
increased and the function is being relied on to make a significant contribution.
With the introduction of the revised Combined Code and the Smith Guidance,
audit committees are expected to take a more focused oversight role in respect
of risk management and internal control. They need assurance from
management and independently that good internal controls are in place and
operating effectively. Internal audit can contribute to independent assurance on
the overall risk management, control and corporate governance processes. It
can also be a useful catalyst for change and improvement within the
organisation. It is important therefore for the audit committee to distinguish
between the role of management and that of internal audit. Management has
primary day-to-day responsibility for managing risk and for the operation of
internal controls within an organisation. Internal audits role is separate and
independent from management. Independence has a different meaning for
internal audit than it does for external audit.(1) The internal audit function is
generally considered independent when it can carry out its work freely and
objectively.
Performance Audit
Safety, security, information systems performance, and environmental concerns
are increasingly the subject of audits. There are now audit professionals who
specialize in security audits and information systems audits. With nonprofit
organizations and government agencies, there has been an increasing need
for performance audits, examining their success in satisfying mission objectives.
Quality Audits
Quality audits are performed to verify conformance to standards through review
of objective evidence. A system of quality audits may verify the effectiveness of a
quality management system. This is part of certifications such as ISO 9001.
Quality audits are essential to verify the existence of objective evidence showing
conformance to required processes, to assess how successfully processes have
been implemented, and to judge the effectiveness of achieving any defined target
levels. Quality audits are also necessary to provide evidence concerning
reduction and elimination of problem areas, and they are a hands-on
management tool for achieving continual improvement in an organization.
To benefit the organization, quality auditing should not only report nonconformance and corrective actions but also highlight areas of good practice and
provide evidence of conformance. In this way, other departments may share
information and amend their working practices as a result, also enhancing
continual improvement.
Project Management
Projects can undergo 2 types of Project audits:
Regular Health Check Audits: The aim of a regular health check audit is
to understand the current state of a project in order to increase project
success.
Energy Audits
An energy audit is an inspection, survey and analysis of energy flows for energy
conservation in a building, process or system to reduce the amount of energy
input into the system without negatively affecting the output(s).
Operation Audit
An operations audit is an examination of the operations of the client's business.
In this audit the auditor thoroughly examines the efficiency, effectiveness and
economy of the operations with which the management of the entity (client) is
achieving its objective. The operational audit goes beyond the internal controls
issues since management does not achieve its objectives merely by compliance
of satisfactory system of internal controls. Operational audits cover any matters
which may be commercially unsound. The objective of operational audit is to
examine Three E's, namely Effectiveness doing the right things with least
wastage of resources. Efficiency performing work in least possible time.
Economy balance between benefits and costs to run the operations
OBJECTIVE
1.
2.
3.
4.
CHAPTER-II
LITERATURE REVIEW
Advantages of Auditing
1.
2.
3.
4.
5.
6.
7.
8.
9.
Limitations of Auditing
1.
2.
3.
4.
5.
Chapter III
COMPANY PROFILE
Client Focus:
Noesis places the client first and adopts a genuine partnering approach. From
the outset, Noesis places great emphasis on understanding the clients current
and likely future business, alongside its challenges and opportunities. Through
this rigorous brief derivation, regular discussion and reporting, Noesis breadth of
experience enables our client to make decisions based on maximum information.
Noesis
to
stimulate
imaginative
solutions
that
work.
Good
Accustomed to viewing life through the clients eyes, Noesis offers unrivalled
commercial counsel to protect the clients interests - whether it is advisory,
transactions or negotiating on behalf of the client.
Location:
Headquartered in the Mumbai, Noesis takes care of its Western and Southern
Indias assignment from this office. Noesis Delhi office takes care of Northern and
Eastern India assignments. Noesis also works extensively internationally,
including in Thailand and the Middle East.
Neosis advisory private limited is a private company incorporated on 27 April
2010. It is classified as Indian non-government company and is registered at
registrar of companies , Delhi. Its authorized share capital is Rs. 100,000 and its
paid up capital is Rs. 100,000.
Neosis advisory private limiteds annual general meeting (AGM) was last held on
30 September 2013 and as per records from ministry of corporate affairs (MCA),
its balance sheet was last filed on 31 March 2013.
Neosis advisory private limiteds corporate identification number (CIN) , is
U67190DL2010PTC202034 and its registration number is 202034. Its registered
address is C-20 Jangpura B, New Delhi 110014 , Delhi , India.
There are two directors of Neosis advisory private limited.
Neosis Advisory with the aim of providing a wide range of accounting and
financial services to clients in India. We are a team of chartered accountants in
India, with vast knowledge and professional experience, serving its clients and
specializes in the fields of accounting, auditing, taxation, foreign investments,
company law consultancy. software development consultancy, ISO 9000-2001
certificate consultancy.
Neosis Advisory is a team of distinguished chartered accountant, corporate
financial advisors and tax consultants in India. Our firm of chartered accountants
represents a coalition of specialized skills that is geared to offer sound financial
solutions and advices. The organization is a congregation of professionally
qualified and experienced persons who are committed to add value and optimize
the benefits accruing to clients.
Capital Market
Noesis Capital Market team advises on investment and divestment strategies
across the entire Hospitality Consultant asset classes. Capital Market team
primarily serves hospitality consultant funds, HNIs investors, developers and
asset owners. Offer solutions based on the specific needs of the client; we take
mandate from client after understanding the investors objectives and assignment
in detail.
Our advice and services are backed by unparallel hospitality consultant market
knowledge, enabling clients to make a quality decision. Our in-depth coverage
ensures we offer a spread of opportunities to our clients.
Capital Market Services include:
Investor Relations
We at Noesis Capital Advisors believe in creating long term sustainable value for
our esteemed clients. The services provided by our Investor Relations team
include but are not limited to:
Evaluating
the
current
Investor
Relations
situation
based
upon
Creation of a Corporate Fact Sheet and Investor Kit geared to both current
and prospective investors of your company notifying current shareholders
of forth-coming events and intriguing new investors with the same
information.
Programs
to
Institutional
and
Individual
allows you to get your company's message in front of hundreds of firms for
evaluation and potential investment.
Press Release Submission over various News, Market and Press wires in
a timely manner. We can also construct news content for your approval
with facts that you provide in order to keep the Press Release process
time efficient.
Project Management
Noesis Project Management Consultancy (PMC) vertical provides professional
services to our clients in achieving their goals of projects within time, quality and
budget. We further adds on project cost savings, proactive risk management, and
profitable strategies for sustainability. You gain an unparallel advantage of having
greater control of outcomes through our suite of specialized industry solutions
Hotel, Commercial, Education, Health, Infrastructure, Industrial, Residential and
Retail.
PMC Division plays the role of a planner, scheduler, coordinator and supervisor
for projects right from concept to completion.
Our consultative and methodical approach brings efficiency and effectiveness
into projects that create real value for your company. A single point-of-contact
(SPOC) provides end-to-end turnkey solutions for Construction Management,
Project Audit Services and Fit-Out Management.
Execution of the project in the quickest possible time, with due diligence to
safety
Our expert team has delivered variety of projects for owners, occupiers and
investors across the nations. We have largely delivered projects across the
country to mention few are Bengaluru, Mumbai, Pune, Kolkata, Hyderabad, and
Agra and many more.
We have the experience to handles every stage of a projects life-cycle: PreConstruction, Construction & Post-Construction. Our expert professional team
has wide-ranging expertise in design and engineering.
The Project Management Platform:
Greenfield Projects
Construction Management
Account Management
Renovation/Refurbishment Manage
Portfolio valuation
Acquisition/Disposition consulting
With our services, you can make a quality decision regarding your hospitality
consultant that is based on an independent analysis of current market conditions.
We provide services to clients such as corporations, financial institutions,
government agencies, public sector entities, developers, hospitality consultant
funds and private investors.
Hospitality Services
Noesis Hospitality team provide customized and unparallel solutions to clients.
Our in-depth understanding enables us to guide clients in shaping effective entry
strategies. If you need a partner that understands the complexities of the
hospitality industry as an operating business and as a hospitality consultant
investment, we can provide the solutions you need.
Our strong operations and consulting background coupled with the domain
knowledge in hospitality consultant provides a holistic view to both developers
and brands. Developers benefit from our comprehensive analysis of a large
variety of brands, and consequently enable them arrive at the best fit for their
development needs. Brands that work with us can make sound, informed
decisions based on our unbiased and objective evaluation of the developers and
locations.
Noesis offers the full range of services
Advisory services
Entry strategy
LIMITATIONS
The sample size is not universal , some part of other cities remained
uncovered
Personal basis may be existing as the dealer of varied nature elicits the
information
RECOMMENDATION
CONCLUSION
The project was a great experience for me in order to study the marketing
aspects in the world. It was a great opportunity for me to express what I have
studied.
This industry is a place where two major players are there in the world.
APPENDICES
QUESTIONNAIRE
NEWSPAPERS: SURVEY
Q1. Name:
Q2. Age:
a.)
b.)
c.)
d.)
e.)
10-20
20-30
30-40
40-50
Above 50
Q3. Which newspaper do you read?
a.)
b.)
c.)
d.)
e.)
Hindustan Times
Times of India
Hindu
Pioneer
Others
Q4. How often do you read any newspaper?
a.) Daily
b.) Weekly
c.) Never
Q5. Have you heard of Pioneer?
a.) Yes
b.) No
Q6. Why do you read newspapers?
a.)
b.)
c.)
d.)
Daily habit
Knowledge
Competitive exam
Gossips
Advertisements
Content
Details
Headlines
Pictures
Q8. If you have heard of Pioneer, what did you like the most about it?
BIBLIOGRAPHY
REFERENCES
http://pcaobus.org/Standards/Auditing/Pages/AU110.aspx
https://www.google.co.in/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&uact=8&ved=0CDQQFjAE&ur
l=https%3A%2F%2F1.800.gay%3A443%2Fhttp%2Fbaf.co.in%2Fauditing-advantages-and-limitations
%2F&ei=uof5Ub5A5CTuATVxIGYBw&usg=AFQjCNFJsVVQUSJaQ59gXT8WS8dQ9-sAgQ