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SA220

Auditing

answered on 05-Feb-24 21:29

In SA220 it is given that, Monitoring process has to be followed by the firm . But there is no clarification that in the firm is quality control review team responsible for monitoring or all the members of the firm should do monitoring except the engagement partner ? Or what? Also , if the quality control review team is performing the review, why there is need of monitoring process ? Also , is monitoring a part process of the quality control review team?

latest answer

Monitoring simply means to keep the firm's quality control policies and procedures are updated. Firms top management will be responsible for the same. Reviewer has a defined meaning. not everything will be reviewed by them. Before closing the audit, a review will be conducted to ensure firms quality control polices are adhered to or not. basically work of one partner will be reviewed by another. Also, there will be a mechanism in the firm where other employees can also give feedback based on which top management can consider changes to be made. Conclusion: Monitoring is checking whether policies are adequate or not, any change needed or new policies need to be designed based on changes.

Anirved Rahatgaonkar

Anirved Rahatgaonkar

CA Inter

0

1

269

FEMA

Corporate & Other Laws

answered on 08-Feb-24 14:23

Maam.. Do we have to focus on prohitibited cap acc transaction for prii. And also on permissible transaction for both proi and prii

latest answer

You will have to focus on both the transactions.

07- Issac Jolly-XII C

07- Issac Jolly-XII C

CA Inter

16K+

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374

Exemption in FM

Exams

answered on 13-Feb-24 14:39

Sir, My friend has completed CA Inter grp 1 long ago. In May-23 attempt in Second Grp he got Adv accounting exemption and in Nov 23 he got exemption in FM but not passed grp Now will he allowed To write only Audit in May 24 or he should also write FM

latest answer

What have you passed earlier?

Surya Prakash

Surya Prakash

CA Final

19K+

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Branch account

Accountancy

answered on 09-Feb-24 19:02

Does Branch profit is recorded as other income In statement of profit and loss of schedule 3 Or branch account is consolidated with the head office books?

latest answer

No. Not required

Atharv Sankliya

Atharv Sankliya

CA Final

3K+

3

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Marginal cost of Capital

Financial Management

answered on 09-Feb-24 12:55

I am unable to understand part C of illustration 18 in Chapter 4(page 4.37 old syllabus). Kindly assist. Thank you

latest answer

Understood sir. So an additional amount of 2950 over retained earnings(14750-11800) shall be raised as debt in order to maintain optimum structure. I misunderstood that the entire 14750 will be invested from capital thus leading to change from optimum structure. Thanks for clarifying.

Aswin Chandar

Aswin Chandar

CA Final

40K+

5

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Prospectus and allotment

Corporate & Other Laws

answered on 08-Feb-24 17:21

Minimum subscription Assume minimum subscription stated in prospectus is 6,00,000 Company decided to issue 1,00,000 shares at 120 Face value 100 Application money is 7 80,000 shares are subscribed. Here how to find minimum subscription compliance is met or not

latest answer

Thank you mam✨

Krishnan K

Krishnan K

CA Inter

5K+

8

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Capital gains

Direct Taxation

answered on 07-Feb-24 21:49

Sir in above problem indexed cost of acquisition is on 5lakhs but why 8 lakhs in 2nd question

latest answer

Please share the screenshot.

Jyoti Dulli

Jyoti Dulli

CA Inter

6K+

1

195

Investment decisions video no. 128 illustration 49

Financial Management

answered on 12-Feb-24 15:34

sir while computing Net ICO, we took S.V of the old machine as Rs.300000(Market value). we can compute Book value at the end of Y2 from the given data (purchase price- Depreciation for 2 years) but why didn't we compute BV and compare SV and BV for the tax Implication( tax on gain or tax saving on loss)? for the computation of Net ICO?

latest answer

Could you please post the question and tag the video

Roobashree Rajagopal

Roobashree Rajagopal

CA Inter

1K+

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NCI impairement

Financial Reporting

answered on 17-Feb-24 15:45

While calculating impairement loss of pluto ltd why intially good will is not added to CGU C and then find impairement? In all othercases we first allocate impairment loss out of goodwill..why it is not happening here?

latest answer

I see it is allocated to goodwill. Can you recheck once.

binu mathew

binu mathew

CA Final

0

1

170

Doubt regarding the Illustration

Financial Reporting

answered on 05-Feb-24 12:35

Dear Sir, In case Assumption 2 has the following sentence only (i.e., In question Assumption 2, Management Budget/ Forcastes have clearly stated they have an intention to sell the asset in the near future and replace it. Should we not Impair the Asset since the management has no intention to keep the asset in near future Hence the question of value in use will it not become irrelavent?

latest answer

If we cannot determine value in use, we will need to compute fv less cost to sell. An asset has to be impaired if there are indicators of impairment.

Vanacharla Sai Pavan Kumar

Vanacharla Sai Pavan Kumar

CA Final

8K+

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