What should the internal auditor do where his independence is being interfered with?
What is decommission liability? In which senior it will occurs in balance sheet?
Decommission Liability is costs that a company expects to incur in the future when the plant is shut down.
Can we deduct TDS on hire purchase?
Answered by: ketavarapu
Member Since Jun-2007 | Answered On : Feb 3rd, 2009
Under Sec 94-I we can deduct TDS
Vouching is the process of inspecting the books of account to ensure that the correct financial position of the entity
Under Sec 94-I we can deduct TDS
Every firms has audit firms to audit their accounts but who will audit an auditing firm?
One auditing firm can audit other auditing firm.
Vouching is the process of checking for the existence an example for this is checking from the final record to the supporting document.
"In accounting language all P&L items vouched."
vouching means to check whether recorded transaction have any voucher or not.
voucher means supportive evidence with the transaction.
Internal audit is the audit system set by the company for audit of the company purpose.
Internal audit (IU) is not mandatory except condition stated by companies act 1956.
IU may be chartered accountant or may not be and having freedom setup by company only.
Internal audit is said to be an independent appraisal activity with in an organisation for review
of
1) ACCOUNTING
2) FINANCIAL
3) OTHER OPERATION
as a basis of service to the organisation
-SAFEGUARDING OF ASSET
INTERNAL AUDIT INCLUDE
OPERATIONAL AUDIT & MGMT AUDIT
My company is given machinery on rent basis to other company . Then it is matter of VAT or service tax ?
you have to pay income tax. if the renting of machinery is ur business then it is chargeable under PGBP(sec.28) of Indian income tax,1961. And it is in nature of service ...and renting of movable g...
Both are applicable if you are working in state of Karnataka.Hiring the machinery to be given to other party first of all we add 4% vat after that we will charge service tax on it.If karnataka is not ur state then to take suggestion from ur consultant.
What is the off balance sheet, and what do ledger 8 and ledger 9 represents to commercial institutions and banks?
What is the difference between tangible assets & intangible assets ?
Tangible Assets are those assets which we can see or touch like fixed asset ,machinery,etc.
intangible Assets are those which we can't be seen like goodwill of the company.
Tangible assets - which is visible, like machine & apply IAS 16
Intengible assets - which is invisible, like goodwill, brand name & apply IAS 38.
Merits and demerits of statutory audit
Statutory audit is always an external audit as the statutory auditor is appointed under the provision of section 226 by company shareholders and as per the professional ethics internal auditor cannot ...
When trial balance matches there could be a error, explain?
Trail balance may tally when there is an error of omission. ( for eg. if we made payment of rs. 1000/- for office expenses but both entries are omitted then trial bal will be tally )
Yes,the trial balance matches even when there are errors.For example when there is a compensating error the trial balance still tallies.
What is the requirement of board meeting on the annual basis
Minimum attendence of members must be in meeting at time.
Min. attendence is according to company's article of association (AOA) its vary company to company.
Can we claim depreciation on second hand purchased asset? If yes, whether it is fixed or floating?
Yes, any company can charge depreciation as expense in financial statement on second handed asset, but it must be fixed asset.
Thank you !
Good will always calculated by externally...
Internally calculated good will is unaccepted according to IFRS 3
Goodwill is recognised based upon the total value of the partnership implied by the new partner's contribution.
Which is the effective way of carrying out a stock check and usage at a lodge?
Inventory count - physically and through ledger (Purchase and Sale).
Check maintain stock register and valuation of stock
List out effective tools for internal audit in manufacturing company?
These are tools that enable Management conduct more targeted and cost-effective assessment of objectives and risks. Such as common organisational objectives, risk events that can affective the achievement of the objectives and typical controls to mmitigate the risk events.
What is caro 2003? What do you mean by management audit?
Company Audit Report Order
What are the reasons for getting audited?
It is requested by Audit commitee or the Companys; shareholders.
The main objective of modern Audit is to help the MGMT to acheive its various objectives by bringing a systimatic approaches and evaluating the risks.
To make sure companies and individuals are in compliance.
What is the difference between an internal audit and the annual external audit?
External Audit is defined as an an audit taken on financial statements to state the financial statements are represented fairly or not.
While the Internal Audit is to audit the process and system and evaluate the control over the company
an internal audit deals with compliance testing of established policies and is carried out in house for the firm to assist in highlighting weaknesses of controls while the external audit de...
The audit firm in one country is audited by global QPR team (Quality Periodic Assessment) it is kind of quality assessmnet team. The audit is conducting at least every 3 years by the international team of the same firm.
Contact the board of directors or the audit committee. They should ensure the independence of internal auditing.