Dear Members,

I have a query related to Cost Audit Compliance:

We are a real estate company, engaged in the business selling of properties. We generally hire outside firms and contractors to execute our projects and which they handover to us to sell the same. Neither have we employed any material, labour nor overheads.

We pay to these contractor firms sum equal to their construction cost + their margin. Since we are not employing any material, labour and overhead expenses, we don’t have any costing records related to these constructions. It all lies with these contractor firms.

Does our company cover under cost audit compliance? If not …

How can we claim exemption for these?

Your co-operation will be greatly appreciated.

Thanklng you.

I read through the ICAI publication with respect to internal audit control implementation. In the questionairre format i have the following doubts w.r.t the heading of PURCHASES, RECEIPT OF GOODS AND PAYMENTS FOR INVOICES:
1.Are persons connected with receipt of materials and the keeping of receiving records denied authority to initiate purchases or to approve invoices ?
a) why the receipt of materials keeping person and to approve invoices be denied?
2.(a)Are all suppliers’ invoices routed direct to the Accounts Department ?
Why the suppliers invoices routed direct to the accounts department?

(b)Are they entered in a Bill Register before submitting them to other departments for check and / or approval ?
Why that has to be done as said above?

(c)Are advance and partial payments entered on the invoices before they are submitted to other departments ?
Why it has to be done like the above?

Thanks & Regards,
Rajesh.

Respected Experts,
I read through the internal control questionnaire issued by ICAI in order to ensure that the internal controls in the organisation is good or needs to be improved further. I am not able to understand the following questions , it will be a great help for me if the experts are able to guide me in this issue.
(Given under the heading of Purchases,Receipt of Goods and Payment of Goods)
1.Are purchase orders pre-numbered and strict control exercised over unused forms?
a)Why the purchase orders should be pre-numbered?
b)Why there should be strict control over unused forms?
2.Is a list of pending purchase orders complied by the Purchase Department atleast once every quarter ?
a) In what circumstances pending purchase orders has to be made?
Thanks & Regards,
Rajesh.

CAN CA IN PRACTICE DO THE TAX AUDIT OF HIS FAMILY BIZ..?

sir,
plz clarify me about the turnover limit for tax audit purpose in the case stated below:
if an organisation has a turnover of Rs. 56 Lakhs (excluding all taxes)in the f.year 2011-12, but the turn over including sales tax (i.e. VAT) is Rs. 61 Lakhs and the n/p is more than 8% of Sales, then is the organisation required to be Audited u/s 44AB.

So plz guide me in understanding the term Turn over for Tax Audit purpose; is that including taxes or excluding taxes.

one of my friend having business of milk distribution /supply. but he done turnover of 1.5 cr in last year. as we know there is a 3-4 % profit margin in said business. is there any relaxation given in tax audit to such kind of business.

need your valuable feedback !

Dear Experts ,
There is one bank account which has credit balance , pls tell me where should i classify the same in revised schedule vi.
I will be very grateful if you help me to solve this problem..

"Reliance Power Ltd.(RPL)

Share Price on Aug 17, 2012 Rs 87.70
Market Capitalisation (Rs Cr) Rs 24,600.73
Total value of Reliance Power Ltd. is Rs 24,600.73 Crores as on Aug 17, 2012

Company have not paid any Dividend from incorporation,

How can due to Coal & Land allotment, Loss to Govt is Rs 29, 000 Crores as per CAG Audit Report when present Market Price of Total RPL is 24,600.73 ?

Pl explain?

Note: - RPL sold 26, 00, 00, 000 Equity Shares (19.58 % of total equity) of Rs. 10 @ Rs 430 per share via IPO on Jan 2008 to small investors & Rs 450 per share to others.

RPL collected Rs 11, 440 Crores from IPO"

what is the scope of statutory audit and tax audit and what is the difference between the same
can a co.appoint two different auditor i.e one each statutory and tax auditor
how i will compute the ceiling limit in this case
as per ICAI GUIDELINES the ceiling limit of audit is 45.can any one explain this how much co audit and tax audit a ca can sign.

Hello,

I want to audit Co-operative Housing Society in Maharashtra. I've heard that a Chartered Accountant has to attend a 3-4 hours lecture on the same and get a certificate only after which this is possible. Where can I attend this lecture and is it really required? Please give me insights.