Summary: The text discusses the responsibilities and duties of an auditor in examining the financial statements of various types of institutions, including stock-in-trade, service companies, and private limited companies. It emphasizes the importance of impartiality, methodical approach, honesty, and integrity in conducting audits to ensure accuracy and transparency in financial reporting. The text also highlights the need for auditors to adhere to professional conduct standards outlined in the Chartered Accountants Act, 1949, to maintain ethical practices while carrying out their duties. Additionally, it addresses specific audit considerations such as internal control procedures, compliance with regulatory requirements, and evaluation of financial transactions to detect any potential window-dressing or misrepresentation in balance sheets. Various cases and scenarios are presented to illustrate the application of audit principles and the significance of upholding ethical standards in the auditing process.