Objective of surprise checks is to ascertain effectiveness of internal control and currency of accounting and other records. Surprise check is more important for (i) audits where the auditor is not satisfied with regard to the system of internal control or (ii)the organisation is too huge, diversified and spread out that management is not active in total control (iii) certain items, for example, cash, investments, stores and stocks, statutory registers, books of primary entry, etc. especially where there is scope for fraud. Surprise visits by the auditor can be a good moral check on the client's staff. The element of surprise in an audit can be both with regard to the time of the audit and the items which are subjected to audit. Wherever feasible, a surprise check should be made at least once in the course of an audit.

sudha reddy

Moderator

18-May-20 10:29

Thanks

Suraj Lakhotia

Admin

30-May-20 11:51