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Posted On:  2 years ago


Auditors Financial Statement

A financial statement audit is the examination of an entity's financial statements and accompanying disclosures by an independent auditor. The result of this examination is a report by the auditor, attesting to the fairness of presentation of the financial statements and related disclosures. The purpose of a financial statement audit is to add credibility to the reported financial position and performance of a business.

article author CA Nikesh Sheth

Posted On:  2 years ago


How to Audit Expenses?

Every business requires auditing procedures to assess financial health. Expenses can be considered as anything that the company pays money for in return for income. These can be contractual expenses such as rent, invoiced expenses such as the cost of supplies or reimbursable expenses such as travel charges incurred by an employee. Audit procedures are designed to evaluate these expenses to make sure they are necessary and in line with internal policies.......

article author CA Nikesh Sheth

Posted On:  2 years ago


Assesement after partition of HUF

As we know HUF (Hindu Undivided Family) is assessed as a separate person under provisions of Income Tax Act, 1961. It has its own identity and right to own property but not a juristic person. It can sue and be sued as a person..

article author CS Deepak Pratap Singh

Posted On:  2 years ago


Brief note of RBI guidelines on Concurrent Audit of Branches.

Attention for the concurrent auditors at bank branches, I have gathered recent directions by RBI for coverage for concurrent audit. The Reserve Bank recently directed that the concurrent audit at bank branches should cover at least half of their advances and deposits..........

article author CA Nikesh Sheth

Posted On:  2 years ago


MISTAKES TO BE AVOIDED WHILE FILING AN INCOME TAX RETURN

Every Tax Payer is required to send a duly signed copy of ITR V form to Income Tax department within 120 days of e filing an Income Tax Return at ..

article author ANKIT GUPTA

Posted On:  2 years ago


How to Audit Tangible Assets

Fixed assets are often main target in an asset audit. Audit of selected asset accounts is to ensure the integrity of their financial statement. Audit process for fixed assets follows several steps to ensure that reports are free from accounting errors.....

article author CA Nikesh Sheth

Posted On:  2 years ago


How to Audit Revenue

As part of a financial audit, the auditor must assess the inherent risk associated with the revenue cycle and perform tests to determine it is relatively free of error or fraud. The inherent risk for this cycle is related to the cutoff dates for particular types of sales and the pressures from management to misstate revenues. By conducting so-called substantive tests and tests of controls, the auditor can provide some assurance that the revenues of the company are recorded accurately.....

article author CA Nikesh Sheth

Posted On:  2 years ago


How to Audit Liabilities

A contingent liability is the possibility of a liability arising from a future event. The liability is contingent on whether or not the event occurs. The most common source of contingent liabilities are outstanding lawsuits and product warranties. Auditors usually ask management to write a statement acknowledging they disclosed all known contingent liabilities.......

article author CA Nikesh Sheth

Posted On:  2 years ago


How to Audit Cash and Bank Balances

Accounting and auditing procedures differ across companies and industries but audit procedures for cash are similar. The auditor must obtain reasonable assurance that the cash balances of the company are stated accurately and does so using mostly standard procedures. Knowing audit procedures for cash can eliminate any surprises for you and your company around audit time.....

article author CA Nikesh Sheth

Posted On:  2 years ago


How to Audit Debtors, Loans And Advances

During the process of verifying trade debtors, the auditors need to ascertain an adequate internal control on the clients accounting system. The auditor should study and evaluate the system of internal control relating to debtors, loans and advances, to determine the nature, timing and extent of his other audit procedures........

article author CA Nikesh Sheth

Posted On:  2 years ago


How to Audit Miscellaneous Expenditure

Miscellaneous Expenditure is a part of the auditing process for companies with various expenses. In addition, there are many complex accounting issues surrounding the topic of miscellaneous expenditure. Companies have a temptation to overstate miscellaneous expenditure and thus overstate expenses. This means that auditors should focus on proper checking of expenses......

article author CA Nikesh Sheth

Posted On:  2 years ago


How to Audit Inventories

Inventory is a large part of the auditing process for companies with physical goods. Inventory is a substantial portion of total assets for many companies. In addition, there are many complex accounting issues surrounding the topic of inventory valuation.....

article author CA Nikesh Sheth

Posted On:  2 years ago


How to Audit Investments

As an auditor you have to test security investments such as your client’s stocks and bonds. Testing investments during an audit is no different from testing any other financial account, such as cash. You must make sure that the amounts shown as investment assets aren’t materially misstated and that all income and changes in an investment’s value are properly recorded.......

article author CA Nikesh Sheth

Posted On:  2 years ago


Business funding for SMEs through CGTMSE

Collateral Security Free Loan for Small Businesses The SMEs sector in India has been booming for more than a decade now. India is a hub for innovation and entrepreneurship and this is proved best by the number..

article author SWETANG SHAH

Posted On:  2 years ago


Fraud Detection Questionnaire for Conducting Audit

That an auditor has the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditing, and has been one of the most frequently debated areas among'st auditors, politicians, media, regulators and the public. So following are some questionnaire regarding fraud detection for conducting audit.....

article author CA Nikesh Sheth

Posted On:  2 years ago


What Auditor should about the Accounting Policy?

The auditing environment continues to change in dramatic ways, and professionals must be prepared for a high standard of responsibility, strategies, and policies. Changes in Accounting Policies must be applied properly. Here I have gathered some information regarding accounting policies to be known by an auditor......

article author CA Nikesh Sheth

Posted On:  2 years ago


What Auditor should know about client?

Obtaining an understanding of the client's business is key to an effective and efficient audit. Our knowledge of the client's business also helps us to develop and maintain a positive professional relationship with the client. So following are important ........

article author CA Nikesh Sheth

Posted On:  2 years ago


Format of Engagement Letter by Auditor

It is very important to keep engagement letter for every professional for all kind of professional work, but it becomes of higher importance in case of Audit work. Following is format for engagement letter to be kept by auditor....

article author CA Nikesh Sheth

Posted On:  2 years ago


Information to be Collected in case of New Audit by Professionals / Auditors

Difficulties with companies act, 2013 has increased liabilities for auditors for some good purpose by MCA and GOI. But auditors are now required to maintain enough information in case of new audit or existing audit. I have gathered data to be collected format of the same is as below.......

article author CA Chirag Chauhan

Posted On:  2 years ago


Borrowing rates to get lower immediately

RBI have reduced repo rate three times by a total of 75 basis point in last 2 months but on an average banks were able to pass on to end borrowers only 20-30 basis points. This is mainly because of calculation of base rate by the banks.......

article author CA Nikesh Sheth