Dear Experts:
If any company falling in cost audit records rules as per new notification issued in may 2011 fist time
a) in this case can company will receive the cost audit order letter from central govt or not ?

b)either company have to wait for cost audit letter from the central govt.?

pls clear the my confusion on this , what are the rules applicable .

thanks
Ravi

in one of my clients , i have noticed that the some of the expenses is appearing in rates and taxes and professional charges relating to a new project which is all together a new line of business in comparison to the present business.

My doubt is whether the expenses can be booked in the normal business P &L or should the same to be shown under expenditure during construction pending allocation as per the guidance note.

Dear Expert,
One concern engage in manufacturing activities and having turnover more than Rs. 100 crore but not listed in stock exchange,
1) here rules of cost audit will applicable or not?
2) can company have to mainatain the cost records under rule 2011.
pls clarify.

thanks
ravi

As an auditor, what are the things to be seen while doing a statutory audit of a big company

There is a Non-Deposit Accepting NBFC (Company).

Accounting Standard -3 Cash Flow Statement is applicable for Level 1 Enterprises only.

The company does not have the 50 crores turnover in the preceding Accounting period for applying AS3.

Is my NBFC a "Financial Institution" for getting applied AS-3.

What is "Financial Institution" for applying AS-3?

sir, as w know one ca can accept 45 tax audit maximum..
today i read kamal garg book..i read same line with ..." maximum 30 audit u/s 224/228 can be accepted"

sir, as per my knowledge ca can accept 45 audit...of whoich only 20be companies..subject to limit of public co. having. 25 or more paid up share capital be 10.

please clarify the matter....

my question are as follows:

Why private company choose to conduct internal audit of its financial statements and spend money as it is not mandatory.

Further they also choose to conduct statutory audit of its financial statements and spend huge money on it.As we know that statutory auditor reports to shareholders and in private company there is only max 50 members and they are relatives and friends,so why spend money in conducting st audit they can know there internal control weakness when they have conducted Internal audit of their financial statements..Please help me out, having difficulty with above.

Dear Sir,

pls advice me
As per Sec.44AD
my clients are running a Medical stores business Partnership Firm - if partnership firm income is loss can audit is complusary

if yes or no pls advice

regards
praveen

I am narendra doing my third year articleship in a firm... In one of my company which iam auditing, the company have started a new line of business for which the construction has started in the same factory.For that business they have ordered a machine.As at March 31, 2011 the machine has not entered the company premises but the company based on a completion certificate from the vendor have taken the cost of machinery into CWIP.
I am not satisfied saying the asset has to be taken into books only when it entered the premises and is not when it is with vendor and not on the based on the completion certificate at the vendors premise.I argue that it should be taken only when GRN for the machinery is raised.
For taking into books they passed the following entry:
CWIP ...Dr
to Vendor A/c



Kindly suggest me whether my arguement with the client is right or is there any other option for treating the same.

The profit in proprietary concern is about 0.80%, is it mandatory to get the book of accounts audited by a CA. (may be Section 44ab)

The total turnover (net of sales) = 18,35000.00
Profit = 15000.00

15000/1835000 = 0.81%

please help.