Recent Amendment in sec 147?
Sec 147 : Income escaping Assessment or Reassessment If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment year, the Assessing Officer…
Journal Entries and Differences between Provision & Contingent Liability
Provision Provision liability reduces an asset’s value because of a present obligation arising out of a past event The event which can result in a provisional liability may or may…
Journal Entries for Dividend
Dividends are payments a company makes to share profits with its stockholders. They're paid on a regular basis, and they are one of the ways investors earn a return from…
What is EOM para? Does mention of this lead to qualification?
As per SA 706 EOM is a paragraph included in auditors report that relates to the matters appropriately presented or disclosed in the financial statement and in auditors’ judgement is…
Types of Audit Report? Difference between General Purpose Audit Report and Special Purpose Audit Report?
Types of Audit Reports: 1. Unqualified Audit Report: The auditor issues an unqualified audit report to financial statements when auditors found no material misstatements after their testing. Therefore, this report…
What are the new requirements in CARO 2020
To enhance the scope of the audit, the MCA in consultation with the National Financial Reporting Authority (NFRA) released the CARO 2020. It lists out the subject matters on which…
What are the deficiencies of control (Specifically asking about Design Deficiency and Operating Effectiveness)?
A deficiency in internal control over financial reporting exists when the design or operation of a control does not allow management or employees, in the normal course of performing their…
What are preventive and Detective Controls? Give an example.
Preventive controls include security mechanisms, tools, or practices that can mitigate undesired actions. An example of preventive control is firewalls, anti virus software etc. Detective controls are designed to find…
What are controls? How are they different from Procedures?
Procedures are the systems that are set in place to meet the established standards of the organization. 1. Processes are the actions performed by accounting personnel that are not controls.…
What are the indicators of and whether company is going concern or not?
You need not cover all, but know at least 6-8 points from this As per SA 570, Events or Conditions That May Cast Significant Doubt on the Entity’s Ability to…
What are Audit Assertions/Financial Statements Assertions/Balance sheet and Profit and Loss statement Assertions?
DEFINITION OF ASSERTION: It refers to the representations by management, explicit or otherwise, that are embodied in the financial statements, as used by the auditor to consider the different types…
What are the audit risk components?
Audit risk means the risk that the auditor might give an inappropriate audit opinion that Financial Statements are free from material misstatements when in fact the financial statements are materially…
What is the 5 step model of recognizing Revenue as per IND AS 115?
This is one of the most commonly asked questions of all time, and irrespective of domain. It is as important as the "Tell me something about yourself question". You must…