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BVEJUJOH Qsjodjqmft!boe!Qsbdujdft ABOUT THE AUTHORS Ashish Kumar Sana is presently Professor in the Department of Commerce, University of Calcutta. He was awarded Ph.D. degree in 2009 by the University of Calcutta. Prof. Sana has more than 15 years of experience in teaching undergraduate and post-graduate courses in Commerce. In addition to his academic experience, he has over 5 years’ adminis- trative experience in the fields of Accounting and Auditing. He has authored five books in English and Bengali medium: namely Indian Financial System, Money and Financial System, Financial Statement Analysis, Business Studies and Principles of Management and Business Communication. He has more than 50 articles published in his name. Under his super- vision, 4 scholars have been awarded Ph.D. degree while 7 students have been awarded M.Phil degree from the University of Calcutta. He has presented several research papers and acted as the chairperson and keynote speaker in many international and national conferences and seminars. Swapan Sarkar is presently serving as an Assistant Professor, Department of Commerce, University of Calcutta. He was awarded Gold Medal due to his excellent academic performance during M.Com. In 2013, he was awarded Ph.D. degree by University of Calcutta. Dr. Sarkar is also a qualified Cost and Management Accountant (CMA) and an Associate Member of the Institute of Cost Accountants of India since 2012. He is also an Associate Member of Institute of Chartered Financial Analysts of India. He has a teaching experience of more than 10 years. His academic and research contributions include more than 25 citations in renowned journals, books, and paper presentation in different national and international conferences and seminars. Bappaditya Biswas is presently working as an Assistant Professor in the Department of Commerce, University of Calcutta. After completing M.Com., he completed Ph.D. from University of Calcutta in 2014. He has over 8 years’ teaching experience in undergraduate as well as postgraduate courses. Dr. Biswas has published more than 20 articles in different journals and edited volumes of repute. Apart from this, he has presented more than 15 papers in different national and international conferences and seminars. Samyabrata Das is an Associate Professor of Commerce at New Alipore College, Kolkata and a Guest Faculty in the Department of Commerce, University of Calcutta. He did his graduation (B. Com. Hons.) from erstwhile St. Xavier’s College, Kolkata in 1993 and was awarded Gold Medal in 1995 for his extraordinary academic performance in M.Com. course. Later, in the year 2014, he was awarded Ph.D. degree in commerce by the University of Calcutta. Dr. Das is also a qualified Cost and Management Accountant (CMA) and an Associate Member of the Institute of Cost Accountants of India since 2007. He has been in teaching for last 15 years. His academic and research contributions include more than 65 papers and citations in journals, books and national and international conferences. BVEJUJOH Qsjodjqmft!boe!Qsbdujdft Btijti!Lvnbs!Tbob! Qspgfttps Efqbsunfou!pg!Dpnnfsdf-!Vojwfstjuz!pg!Dbmdvuub Txbqbo!Tbslbs Bttjtubou!Qspgfttps Efqbsunfou!pg!Dpnnfsdf-!Vojwfstjuz!pg!Dbmdvuub Cbqqbejuzb!Cjtxbt! Bttjtubou!Qspgfttps Efqbsunfou!pg!Dpnnfsdf-!Vojwfstjuz!pg!Dbmdvuub Tbnzbcsbub!Ebt! Bttpdjbuf!Qspgfttps Ofx!Bmjqpsf!Dpmmfhf-!Lpmlbub McGraw Hill Education (India) Private Limited CHENNAI McGraw Hill Education Offices Chennai New York St Louis San Francisco Auckland Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal San Juan Santiago Singapore Sydney Tokyo Toronto McGraw Hill Education (India) Private Limited Qvcmjtife!cz!NdHsbx!Ijmm!Fevdbujpo!)Joejb*!Qsjwbuf!Mjnjufe! 55502-!Tsj!Flbncbsb!Objdlfs!Joevtusjbm!Ftubuf-!Bmbqbllbn-!Qpsvs-!Difoobj!.!711!227 Bvejujoh;!Qsjodjqmft!boe!Qsbdujdft Dpqzsjhiu!©!3128-!cz!NdHsbx!Ijmm!Fevdbujpo!)Joejb*!Qsjwbuf!Mjnjufe/ Op!qbsu!pg!uijt!qvcmjdbujpo!nbz!cf!sfqspevdfe!ps!ejtusjcvufe!jo!boz!gpsn!ps!cz!boz!nfbot-!fmfduspojd-!nfdibojdbm-!qipupdpqzjoh-! sfdpsejoh-!ps!puifsxjtf!ps!tupsfe!jo!b!ebubcbtf!ps!sfusjfwbm!tztufn!xjuipvu!uif!qsjps!xsjuufo!qfsnjttjpo!pg!uif!qvcmjtifst/!Uif!qsphsbn! mjtujoht!)jg!boz*!nbz!cf!foufsfe-!tupsfe!boe!fyfdvufe!jo!b!dpnqvufs!tztufn-!cvu!uifz!nbz!opu!cf!sfqspevdfe!gps!qvcmjdbujpo/ Uijt!fejujpo!dbo!cf!fyqpsufe!gspn!Joejb!pomz!cz!uif!qvcmjtifst-! 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Wjtju!vt!bu;!xxx/nifevdbujpo/dp/jo Efejdbufe!up Our Parents 0ѽѰѱѬѮѰ Globally, the concept of Auditing has undergone a radical change in its approaches, principles and procedures. At the same time auditors of the 21st century must be prepared to “audit” virtually anything—operations (including control systems), performance, information and information systems, legal compliance, financial statements, fraud, environmental reporting and performance, and quality. All these elements have made the subject quite dynamic and at the same time complicated too. The constant changes in the regulatory framework relevant to its conduct further add to the complexity of the subject. In India, the regulatory changes during the past few years have brought a paradigm shift in the approach of Accounting and accordingly Auditing. The introduction of The Companies Act, 2013 along with all the associated rules (including Company Auditor’s Report Order, 2015), promulgations from the Institute of Chartered Accountants of India and more recently the introduction of new set of converged Indian Accounting Standards (Ind AS) have made the concept of Auditing more rule-based than being principle-based. Keeping this in mind, this book has been written with the objective to describe the modern tools and techniques of auditing in a student-friendly approach. The contents of the book have been lucidly explained point-wise with appropriate examples wherever necessary. The key points are summarised at the end of each chapter. Model questions along with the answers have also been included at the end of the book to provide ample scope for practice and at the same time making students well-versed with the exam pattern. This book is intended primarily for the commerce students pursuing undergraduate courses from University of Calcutta and other Universities of Eastern India. We believe that our present endeavor will be beneficial for our readers. Authors !ѮѶѹѺ҂ѷѰѯѲѰѸѰѹѿѾ This book would not have been possible without the unstinting support of many people. We take this opportunity to offer our sincere thanks to all of them. It is a great pleasure to express our deep sense of gratitude to all our respected teachers associated with the Department of Commerce, University of Calcutta, who have enriched our academic knowledge and outlook and have also given us valuable suggestions in drafting this book. We also express our deep gratitude and indebtedness to all the renowned authors on this subject from whom references have been taken. We are immensely benefited from the interactions we had with our friends, teachers of different colleges and universities at different points of times. We are grateful to the editorial and production teams at McGraw Hill Education (India) Private Limited for their constant support and encouragement in publishing this book. Specially, we would like to offer our sincere thanks to Mr. Suman Sen, Mr. Amit Chatterjee and Mr. Atul Gupta for sparing their valuable time in going through our drafts and providing invaluable suggestions. Last but not the least, we also acknowledge the endless support of our family members who had to sacrifice quality time spent due to our continuous engagement in this venture. Any suggestions for the improvement of the book from professionals, teachers, students and other readers will be very much appreciated. Authors