Dear readers, experts

Can any one please clarify the reason for increase of tax audit limit from Rs 60 Lacs to Rs l00 Lacs. In just 2 years the limit was increased from 40 Lacs to 100 Lacs which was intact from some decades.

Whats the ICAI doing in these regard?. In one side our presidents are saying that there is bright future of the current C.A in practice & on the other side the work is all most gone, now bank audit also gone away.

So what left with the new chartered accountants, the ICAI must seriously think over the matter.

can a ca not in practice provide service of an arbitrator for fee?

Tax Audit is not applicable for a pvt ltd co whose turnover is below the limit mentioned in 44AB. Is this correct?

What is the role of statutory auditor in such a case?

Auditor duties to inspect Register of Directors, MD, Manager and Secretery.

The Auditor should refer to this register:

1.To identify the composition of personnel who are charged with the governance of the entity.

Sir,i did not understand this point.

2. Also i want to know the reason of the provision that why a CA cannot act as both the liquidator as well as the Auditor of the company..

Dear Sir,

Can any body provide the areas to be covered in management audit of asset management company of mutual fund or some guidelines to be followed by the AMC

I got a problem during the course of audit in our client place.
and we can not make the decision about the account procedure on such case.
the case is as follows


*My Client had purchased land for Rs. 1 Crore in April 2005.
*In the year 2011 my client entered in an agreement with a party(say ABC ltd) to sell such land for Rs 10 Crore, to be sold on 30.11.2012.
*They entered an agreement to be performed with in 6 months and received an advance of Rs. 2 crore on 01.06.2011
*on 1.12.2011 ABC Ltd fails to perform the contract, they refused to purchase the land and as per the terms of the agreement our client forfeited the money of Rs 2 cr.
* Now the problem is how can we present such 2 cr. In Financial Statements of 2011-12?

Mr. A is chartered Accountant in service want to resign his service and want to join his family business. Can he do so?

its urgent

We know that if fees charged for other services is more than statutory audit fees , he(auditor) would be guilty of prof.misconduct. But certain services are exempted for this puepose.
Friends, can anybody provide me all such exempted services?

I have a query about disqualification of auditors.The firm where i am doing articleship gives consultation services in addition to statuatory audit to some of its clients .Some of the clients account show that we have credit balances from the clients.(say 10,000)(i.e.the firm owes the clients or the firm has the liability to pay or has got payments for future works).does this mean that according to companies act,section 226 we are disqualified for performing audit? Or should we ignore that amount(that we are owing to clients) taking them as transctions in normal course of business (assuming them as mere advances ). Please clarify (if there is any case of ignoring the indebtness)

when foreign currency purchased how is it recored in books of ac?

eg. foreign exchange ac dr. 109533
to abc pvt ltd 109533
being 1500 purchased for london tour from___ to ___


is above entry is coorect to pass in books of accouont?