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Auditing

answered on 23-Aug-22 14:19

While carrying out the statutory audit of a large entity,what are the substantive procedures to be performed to assess the risk of material misstatements??

latest answer

Auditing standards don't specify what types of planning analytics to use. Analytical procedures are used as substantive procedures when the auditor considers that the use of analytical procedures can be more effective or efficient than tests of details in reducing the risk of material misstatements at the assertion level to an acceptably low level. Analytical procedures are performed as an overall review of the financial statements at the end of the audit to assess whether they are consistent with the auditorâ??s understanding of the entity. Final analytical procedures are not conducted to obtain additional substantive assurance. If irregularities are found, risk assessment should be performed again to consider any additional audit procedures are necessary. Analytical procedures - (i) set and document overall expectations based on past changes, management discussions, company minutes, etc (ii) compare prior period numbers to creating risk assessments at the financial statement reporting level.. (iii) add any key industry ratios tracked by management and those charged with governance (iv) summarise conclusions. These conclusions may indicate risk of material misstatement.

Lakki Kamu

Lakki Kamu

CA Final

4K+

1

565

Companies act 2013

Corporate & Other Laws

answered on 23-Aug-22 15:32

Affixing of common seal on company documents compulsory. This statement is correct or incorrect

latest answer

Common seal is not compulsory.

Ritika Chaudhary

Ritika Chaudhary

CA Foundation

170

7

552

Doubt Regarding SLR and CRR

Accountancy

answered on 03-Nov-22 12:48

What are the applicable CRR, SLR rates for Nov 2022 exams

latest answer

4% CRR and 18% SLR

Naman trivedi

Naman trivedi

CFA L1

55

3

1K+

#18 Question for the day (Auditing-Inter)

Auditing

answered on 24-Aug-22 12:26

ABC Limited is engaged in the business of manufacture of Bags and Belts. CA Dinesh is appointed as an auditor of ABC Limited for the year 20X1-X2. CFO of ABC Limited approached CA Dinesh with following details while finalizing the books of account of the Company as on 31st March, 20X2: Rate of Gross profit on sales - 20% FY 20X1-X2 and 8% for FY 20X0-X1. Describe any four steps that CA Dinesh should carry out to satisfy himself on the sharp increase in rate of gross profit on sales as compared to the previous year.

latest answer

It's done mam

Sudha Reddy

Sudha Reddy

CA Final

20K+

6

600

What is E voting

Corporate & Other Laws

answered on 23-Aug-22 12:18

Can someone explain what is E voting

latest answer

Electronic voting (also known as e-voting) is voting that uses electronic means to record the votes of members in a electronic register in centralized server with high a Cyber security. Example: Electronic voting machines (also called EVM) or computers connected to the Internet. Remote e- voting :means the facility of casting votes by a Member using an electronic voting system from a place other than venue of a general meeting.

Dhakshana Dhakshana

Dhakshana Dhakshana

CFA L2

18K+

4

441

Logarithms

Maths & Stats

answered on 29-Sep-22 16:23

Q. 18

latest answer

Options c is correct

Harshita Tripathi

Harshita Tripathi

CA Inter

2K+

6

576

Articleship

Exams

answered on 22-Aug-22 21:58

Can we join articleship after clear one group...if yes what shld we after the clearing group1?

latest answer

foundation route or direct entry foundation route after clearing one or both grp you are eligible for the articleship. 1. find auditor and join as articles by uploading form 102 and 103 in ssp portal

Sreejan P S

Sreejan P S

CA Final

18K+

5

551

Related parties

Corporate & Other Laws

answered on 23-Aug-22 09:25

What is sec 188 ? In relation to these related parties

latest answer

Transactions Regarded as Related Party Transactions. Any transaction between a Company and its related party relating to a. sale, purchase or supply of any goods or materials. b. selling or otherwise disposing of, or buying, property of any kind; c. leasing of property of any kind; d. availing or rendering of any services; e. appointment of any agent for purchase or sale of goods, materials, services or property; f. such related partyâ??s appointment to any office or place of profit in the company, its subsidiary company or associate company; and g. underwriting the subscription of any securities or derivatives thereof, of the company

PRO TECHS BY JANU

PRO TECHS BY JANU

CA Inter

13K+

3

507

Sec 9(1)(viii) meaning of non corporate non resident

Direct Taxation

answered on 23-Aug-22 10:45

What does this mean ,non corporate non resident or foreign company

latest answer

Non resident individual comes under Non corporate non resident

mani charan

mani charan

CA Final

3K+

4

1K+

#17: Question for the day (Adv. Acc - Inter)

Accountancy

answered on 22-Aug-22 21:25

Write the answer in a sheet as you would write in exam and send photo by 8pm. #LetsPractice Monu Ltd. sold machinery having WDV of Rs. 400 lakhs to Sonu Ltd. for Rs. 500 lakhs and the same machinery was leased back by Sonu Ltd. to Monu Ltd. The lease back was in nature of operating lease. Explain the accounting treatment as per AS 19 in the following cases: (i) Sale price of Rs. 500 lakhs is equal to fair value. (ii) Fair value is Rs. 450 lakhs and sale price is Rs. 380 lakhs. (iii) Fair value is Rs. 400 lakhs and sale price is Rs. 500 lakhs. (iv) Fair value is Rs. 460 lakhs and sale price is Rs. 500 lakhs.

latest answer

Correct answer below. Please refer and evaluate. Following will be the treatment in the given cases: (i) When sales price of Rs. 500 lakhs is equal to fair value, Monu Ltd. should immediately recognise the profit of Rs. 100 lakhs (i.e. 500 â?? 400) in its books. (ii) When fair value of leased machinery is Rs. 450 lakhs & sales price is Rs. 380 lakhs, then loss of Rs. 20 lakhs (400 â?? 380) to be immediately recognised by Monu Ltd. in its books provided loss is not compensated by future lease payment. (iii) When fair value is Rs. 400 lakhs & sales price is Rs. 500 lakhs then, profit of Rs. 100 lakhs is to be deferred and amortised over the lease period. (iv) When fair value is Rs. 460 lakhs & sales price is Rs. 500 lakhs, profit of Rs. 60 lakhs (460-400) to be immediately recognised in its books and balance profit of Rs. 40 lakhs (500-460) is to be amortised/deferred over lease period.

Sahibdeep Singh

Sahibdeep Singh

CA Inter

14K+

2

1K+