The Nature and Fuction of Audit

In: Business and Management

Submitted By astro0428
Words 766
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The purpose of this paper is to explain the nature and functions of auditing in Indian Casino Industry. Generally, the Indian Casinos are required to issue the annual audited financial statements and compliance audit reports. Users of financial statements look to the independent auditor’s report for assurance about the reliability of information and its conformance to generally accepted accounting principles. The Casino’s audit process is a systematic process designed to obtain and evaluate evidence regarding management’s assertions about economic action and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to intended users.

The Casino’s financial statement audit involves obtaining and evaluating evidence about entity’s presentation of its financial position, results of operations, and cash flows for the purpose of expressing an opinion on whether they are presented fairly in conformity with established criteria-usually generally accepted accounting principles. The auditors’ responsibility is to express opinion on the Casino’s financial statements based on their audit which were conducted in accordance with GAAS.

The Casino’s compliance audit involves obtaining and evaluating evidence to determine whether the Casino conforms to Minimum Internal Control Standards (MICS) issued by National Indians Gaming Commission (NIGC).

GAAS is the most widely recognized auditing standard associated with the public accounting profession and originally approved by the members of the AICPAs in the late 1940s. They have since been incorporated into the Statements on Auditing Standards. The audit is to be performed based on following standards:

General Standards
1. The audit is to be performed by a person or persons having adequate technical training and proficiency as an auditor.
2. In all…...

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