Notes And Study Material for Exam Papers

In the ordinary language capital means the money one invests in a business. But according to economists the capital does not mean money. They say that money is simply a medium of exchange capital may be measured in terms of money but money is not capital. Capital really consists of goods like machines, buildings, plants, raw materials etc which are invested to produce more goods. It is that part of the produced wealth which is invested for further production.  Capital is therefore wealth. But all wealth is not capital, it is only part of wealth. Only that part of wealth is capital which is invested in further production. The wealth which is directly consumed by its owner for satisfying his immediate wants is not capital. Whether an article of wealth is capital or not depends, not on any inherent quality in that article, but on the use to which it is put by its owner. Suppose a man possesses an engine or a boiler, it cannot be called capital; but if he uses it in a factory, it...

Division of labour is an outstanding feature of the modern organization of production. In its modern sense, it means the splitting up of the process of production. In primitive societies, every man produced what he required for his own use. There was no division of labour. But with the progress of civilization men learnt that it was not economic for the same man to be a hunter, a fisherman, a weaver and a farmer. So each began to adopt one particular occupation. Some, for example, adopted the profession of pottery, others became cobblers, still others carpenters, and so on. Thus specialization in occupation began. Division of labour has therefore, resulted in specialization. Every one became specialized in producing one article. A man secured his other necessities in exchange of his surplus products. Division of labour therefore also means exchange. With the passing of time, the division of labour has been carried further. In our present economic system every productive funct...

Need and Purpose of Auditing Programme The main purposes of an audit programme are: a.         Describe in detail the work to be carried out and its objectives. b.         Facilitate the prior approval of the planned steps. c.         Provide continuous control by means of comparison of actual work to planned work. d.         Facilitate review of work done. e.         Provide evidence of the work done according to generally accepted auditing standards. f.          Provide a basis for planning the next year’s audit. g.         Maintain a close vigil over the performance of audit work. h.         Ensures that the work is performed in an ordinary mann...

Advantages and Disadvantages The advantages of Audit Programme are: 1.         Provides a clear set of instruction on the work to be done. 2.         Provides clear record of work done and by whom. 3.         Work can be reviewed by senior auditor. 4.         Work will not be duplicated. 5.         No important work will be overlooked. 6.         Evidence of work done is available for use in defending charge for negligence. 7.         Audit Programme serves as a shield against any charge of negligence by a client on the part of the auditor. 8.         It provides an assurance that no material aspect of audit examination has been overlooked. 9. ...

Definition: Audit programme may be defined as the auditor’s plan of action indicating the work to be accomplished, the audit tests and procedures to be followed, the persons responsible for the accomplishment of the work, and the time within which the work is to be accomplished. Some Authoritative Definitions “An Audit programme is a detailed plan of the auditing work to be performed, specially the procedures to be followed in verification of each item in the financial statements and giving the estimated time required”. An audit programme is a flexible planned procedure of examination. Meaning & Nature of the Audit Programme Audit programme consists of a set of detailed guiding points or instructions describing the nature, timing and extent of the audit procedures required to implement the overall audit plan. It is a description, memorandum, outline or written scheme designed to identify the work to be done. It is the auditor’s plan indicating th...

The role of the auditor is that of an independent professional critic who investigates, analyses and evaluates the information underlying the statements as a means of reaching a conclusion as to their fairness. Before an auditor can express an opinion on financial statements, he must have sufficient Evidence that – a) The items in the financial statements are supported by the balances in the ledger accounts; b) The balances in the ledger accounts summarize correctly the numerous debit and credit entries; c) The debit and credit entries in the accounts represent proper accounting interpretation of all the transactions entered into by the business. In the audit of a company, this chain of evidence extends from documents describing individual transactions through the books of original entry to ledger accounts, and from ledger accounts to financial statements. The making of an audit may be thought of as the process of gathering and evaluating sufficient evidence to provide an...

Digital Image Processing –DIP- LAB 2 Objective: Introduction to image processing functions in Matlab. Fundamentals: A digital image is composed of pixels which can be thought of as small dots on the screen. A digital image is an instruction of how to color each pixel. Image Processing Toolbox: Overview The Image Processing Toolbox provides a comprehensive set of reference-standard algorithms and graphical tools for image processing, analysis, visualization, and algorithm development. You can restore noisy or degraded images, enhance images for improved intelligibility, extract features, analyze shapes and textures, and register two images. Most toolbox functions are written in the open MATLAB® language. This means that you can inspect the algorithms, modify the source code, and create your own custom functions. The Image Processing Toolbox supports engineers and scientists in areas such as biometrics, remote sensing, surveillance, gene expression...