Audit Interview Questions

how to done statutory audit

under 94 - I @ 2%

Vouching is the process of inspecting the books of account to ensure that the correct financial position of the entity

to ascertain or present the true and fair view of financial statement with regulatory legal compliance

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.

There are following types of audit Statutory Audit Non-statutory Audit External Audit Internal audit Final Audit social audit performance Audit Statutory audit: This is the audit governed by statute ...

Internal audit external audit are the main types and further they are classified on the basis of nature of work, tangible, intangible.

CARO means company audit report order 2003.It describes the matter on witch Statutory Auditors has to report in their Audit Report.

Company Audit Report Order

Contact the board of directors or the audit committee. They should ensure the independence of internal auditing.

Decommission Liability is costs that a company expects to incur in the future when the plant is shut down.

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

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.

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.

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 ...

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.

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.

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.