powered by logo

Forums

Using work of internal auditor

Auditing

answered on 27-Jan-26 08:00

“The external auditor in some circumstances use audits or reviews of financial information by internal auditor of subsidiaries which is not a significant component to the group provided it doesn’t conflict with the requirement of SA 600”, in this regard can you provide some examples where such use of work by external auditor conflict with SA600

latest answer

Suppose, Internal auditor of the subsidiary -reports to local management, -has performance appraisal and remuneration influenced by subsidiary CFO, -lacks sufficient technical competence. The group auditor still uses the work due to low materiality. Conflict with SA 600 and 610 is- The group auditor must evaluate: • objectivity, • competence, • systematic and disciplined approach. Group audit risk cannot be justified on “low significance” when objectivity or competence is impaired. So here, the use of work by external auditor conflict with SA600 Let me know if you need some more clarity or examples

Mhd Mmp

Mhd Mmp

CA Final

585

1

95

Revaluation where decommissioning liability is there

Financial Reporting

answered on 13-Feb-26 13:03

When we buy an Asset, we add the present value of the decommissioning liability (Say 100+20). But when we revalue it, say based on DCF, (eg at Rs 110) we consider the liability as a negative right? So when we revalue it, should we not add back the present value twice? (20+20+100 so 140)

latest answer

Understood, thank you sir

Vishnu Muraleedharan

Vishnu Muraleedharan

CA Final

32K+

6

89

present value

Financial Reporting

answered on 25-Jan-26 12:11

sir, here we getting benefit interest but why are we calculating fair value of loan, instead why we not calculate by difference of interest rates and discount the interest of 15lakhs(25lakhsx%x5years) [Video Time Stamp: 04:32]

latest answer

You will understand the full logic in Ind AS 109

santosh durgapu

santosh durgapu

CA Final

2K+

1

58

Goodwill allocation

Financial Reporting

answered on 27-Jan-26 10:27

Sir goodwill on acquisition is not only allocated to the acquired business but also to the existing business right???? In this question goodwill is allocated to CGU A,B,C alone as the ratio is mentioned in the question.... If nothing is mentioned about allocation of goodwill that is no ratio is given and the carrying value of SUN Ltd is also given means..... Will we allocate Goodwill to Existing Business (SUN Ltd) as well??? If so who or in what basis we'll allocate the Goodwill??? [Video Time Stamp: 09:25]

latest answer

The question will specify basis of allocation.

Mohanbabu N

Mohanbabu N

CA Final

3K+

1

96

Change in ownership

Financial Reporting

answered on 24-Jan-26 09:51

If there is no loss of control, then we have to disclose under Financing activity, this is applicable only for CFS or even standalone?? [Video Time Stamp: 06:28]

latest answer

For standalone its a disposal of investment so investing activities

Shilpa hosmane

Shilpa hosmane

CA Final

12K+

1

103

Articleship

Others

answered on 29-Jan-26 16:21

Sir what is the monthly practical training record? And how to maintain it?

latest answer

Your principal will guide.

Priyanka R

Priyanka R

CA Final

20K+

1

82

illustration 44

AFM

answered on 24-Jan-26 07:20

Why dividend is cost for Xyz limited ..since they have only borrowed it will be directly received by Mr A na..so..it won't be cost for XYZ limited Equity valuation in AFM [Video Time Stamp: 22:46]

latest answer

Think of this as follows If u borrow a hen and keep it in your house. When it lays an egg initially u have possession of the egg. but u have to give the egg back to the person from whom u borrowed the hen 😀 Same logic applies here

Kanakesh 05

Kanakesh 05

CA Final

50

1

74

Mutual fund

AFM

answered on 24-Jan-26 17:35

Is the formula used in question no.8 is correct or is it a mistake sir

latest answer

Thank you sir for clarifying

Divakar P

Divakar P

CA Final

320

2

65

UDIN for Auit Report

Auditing

answered on 29-Jan-26 16:55

Mam, i see two diffrent auditors giving two different UDIN for the same audit report. Is it valid in practice? that same document can have two different UDINs? [Video Time Stamp: 09:15]

latest answer

Understood this as i covered SA 600, Thank you mam for the clarification

Vinod Kumar

Vinod Kumar

CA Inter

11K+

10

93

Syllabus sequence

Accountancy

answered on 23-Jan-26 18:39

Sir, In ICAI Syllabus, Accounting standards are been listed and grouped under specific chapters like asset based AS's like that. Should we have to study in that sequence or As per sequence of your study material.

latest answer

Ok sir. Thank you

Jagadeesh Jaidev

Jagadeesh Jaidev

CA Inter

645

2

89