Forums
Is this an example for techniques by which management override controls?
Auditing
answered on 02-Dec-20 14:46
The legal expert of X Ltd informed the management that it is probable that X Ltd will lose the case filed against them in court. The accounts team of X Ltd wants to recognize Contingent Liability as per AS 29 because outflow of future Economic benefits is not remote. TCWG of X Ltd tells the accounts team to ignore it for the accounting period ended.
latest answer
Yes
Kumarjit Dey
CA Inter
★ 4K+
1
691
Types of audit procedures vs audit procedures to obtain evidence
Auditing
answered on 02-Dec-20 14:50
1. Risk Assessment Procedures (RAP) 2. Substantive Procedures a. Test of Details (ToD) i. Verification ii. Vouching b. Substantive Analytical Procedures 3. Test of Controls (ToC) / Compliance Procedures _________________________________ Inspection - 1, 2, 3 Observation - 1, 2(a.i), 3 (Walkthrough) External Confirmation - 2, 3 Recalculation - 2(a.ii) Reporformance - 2a, 3 Analytical Procedures - 1, 2, 3 Inquiry - 1, 2, 3 Connecting the two worlds is so confusing theoretically.
latest answer
What is your query?
Kumarjit Dey
CA Inter
★ 4K+
1
1K+
What is share market...how will nifty make profit.
Others
answered on 03-Feb-23 18:09
..
latest answer
The stock market, also known as the equity market or share market, is a platform for buying and selling ownership stakes in publicly traded companies. Investors can purchase stocks, also known as shares, of these companies and participate in their potential growth and profits. The National Stock Exchange of India (NSE) 50 index, also known as Nifty 50, is a stock market index of the top 50 companies listed on the NSE by market capitalization. The index is used as a barometer of the Indian equity market and is considered a good gauge of the overall health of the Indian economy. Investors can profit from the Nifty 50 by purchasing index funds or exchange-traded funds (ETFs) that track the performance of the index. If the nifty share price and the underlying companies in the index perform well, the value of these investments will generally increase, and investors can sell their holdings for a profit. On the other hand, if the Nifty 50 and the underlying companies in the index perform poorly, the value of these investments may decrease, and investors may incur losses. It's important to remember that investing in the stock market involves a degree of risk and past performance is not indicative of future results. It's recommended to seek advice from a financial advisor and to diversify your investment portfolio to manage risk. https://www.indiainfoline.com/nifty-50
Shreesha .T.u
CA Foundation
★ 2K+
2
782
Facts which become known to the auditor
Auditing
answered on 03-Dec-20 09:11
Either After the date of the auditors report but before the date the financial statements are issued Or After the financial statements have been issued If auditor believes that such events or facts require FS to be amended, and management refuses to co-operate and not only that, auditor believes that such events or facts would have caused him to amend his report. Since Auditor's report have already been submitted with the company, now what will the auditor do? since he cant amend his report anymore. In the ICAI material it ends simply by writing "inquire how management intense to address the matter in the financial statements". Thats it. But then what? What if management does not bother about it since they have received Auditor's report already? And say in worst case scenario, FS have been already been issued at the AGM where auditor was also present but at that point of time did not have that information. Later came to know about it.
latest answer
Both.
Kumarjit Dey
CA Inter
★ 4K+
4
671
Appointment of an auditor in the place of retiring auditor
Auditing
answered on 02-Dec-20 14:55
Sir here, it is said that the notice should be sent to members whose voting rights is not less than one percent of the total voting power or members whose paid up capital not exceeding5 lacks. Not exeeding 5 lakhs means even share holder having just one share should also entitled to receive notice. Is this correct
latest answer
This is the minimum requirement of shareholding to ask company to give special notice. Notice will be given to all.
sakthi saravanan
CA Inter
★ 510
1
639
Format of BRS
Accountancy
answered on 02-Dec-20 14:55
Which format of BRS should be followed in exam? The 1st one or second one?
latest answer
Either is fine.
Aman Mahajan
CA Final
★ 19K+
1
939
Audit Programme and Appropriateness
Auditing
answered on 02-Dec-20 14:56
As per the definition given in the book, Audit Programme is a series of verification procedure to be applied to the financial statements for the purpose of obtaining sufficient evidence. It doesnt mention appropriateness (quality of) audit evidence. It is purposely omitted?
latest answer
It is implied.
Kumarjit Dey
CA Inter
★ 4K+
1
599
ESOP
Accountancy
answered on 02-Dec-20 14:56
How can the company estimate today ,the furute market value of the Employee stock on the vesting date,in practically how can a company can estimate the market value of the Employee stock ?
latest answer
There are mathetical formulae which are used to estimate. Black scholes is one such model.
Paidala Harish
CA Final
★ 2K+
1
678
Benefits of Planning vs Overall Audit Strategy - assistance to auditor
Auditing
answered on 02-Dec-20 14:57
Since Audit Plan and Overall Strategy are closely interrelated. Can we write the points for benefits of audit plan if question asks for benefits of overall strategy and vice versa?
latest answer
They anyways have common points.
Kumarjit Dey
CA Inter
★ 4K+
1
754
What does this mean and why should this be recorded in Audit Engagement Letter i.e. in advance before even starting an audit
Auditing
answered on 02-Dec-20 17:27
" reference to the expected form and content of any reports to be issued by the auditor" What does expected form and content mean? If auditor is execting issue a qualified/unqualified report. Such thing? Why should such a thing be stated in advance (before even performing Audit procedures) in the AEL?
latest answer
Thank you.
Kumarjit Dey
CA Inter
★ 4K+
3
856