hello experts
i am doing audit of a listed concern which has been declared sick by BIFR
it had issued rs.4 cr debentures earlier
n now due to non payment of int,n principal amount it gone for OTS(one time settlement) and has written back the balance amount as income of the previous year
now my quest.is if co.used the principal amt.against purchase of fixed assets and now when it is writing off both int n principal amt,will it have to adjust principal amt.against fixed assets n capital will come or writting off full amtas b.income is correct
plz refer section also
thankx

What is the celing limit for Tax & Statutory Audits for an auditor?

Hello freinds,
My attempt is due in November and there is change in relation to Advertisement clause.
whether i have to do changed or old provisions?
Naveen Garg
gargnaveen2115@gmail.com

This query was posted few days back but strangely it disappeared shortly after posting(after the site was down for maintainance). Here is the question again:


What are the specific instructions to be issued to the client BEFORE taking up the physical verification of stock by the auditor?

This query was posted few days back but strangely it disappeared shortly after posting(after the site was down for maintainance). Here is the query again:



In what all ways internal audit process is going to be different in ERP environment compared to internal audit process in non ERP based environment ?


Please explain in Detail.

hello frnds,
i hv a doubt as far as company audit is concerned..
wht shd we see in a MINUTE BOOK of a company???????????????

One of my client is contractor, his previous year Gross Billing was Rs. 45 Lacs but actual cash receipt is below Rs.40 lacs . TDS was also deducted on Rs. 45 Lacs.Whether return can be filed on cash basis as the balance receivable amount is disputed, may be received or may not be or audit is required.
and if audit is required what is the remedy for disputed amount.
please reply with accounting standard.
This is the first year of business.

A pvt. ltd. company formed in February 2008 and got the certificate of business commencement in 15.05.2008, has the following positions as at 31.03.08:
a)No expenses have been incurred except preliminary expenses,
b)It has purchased furniture for office on 13.03.08 and incurred preliminary expenses,
c)It has placed order for purchase of Raw Material to manufacture a product on 5.05.2008, purchased furniture and incurred preliminary expenses during the year.

My queries are as below:
i) Whether company can be said to have commenced business as at 31.03.08 in any of the situation?
ii) What should be the accounting treatment in each situation for-
a) Preliminary Expenses
b) Purchase of Furniture
iii) Do I have to prepare P & L Account for the year ending on 31.03.2008.

I have a opinion that P&L A/c should not be prepared until business is commenced. But then a problem arises what would happen to the depreciation on furniture and audit fees paid to CA for the year 2007-08.

Further I am confused because as per para 51 of AS- 26 expenses which does not bring into existence any intangible asset should be charged to P&L A/c.Hence preliminary expenses should be charged in P&L A/c.

Please answer in detail as I Have to finalise the Balance Sheet of such company.

1.Assessee working as builder gross turnover is 15L.
OR
2.Assessee is working as Interior Designer turnover 15L.

Wheather tax audit is applicable in both the cases under professional catagery or only in case no 2?
If the assessee not having professional qualification, can he decide on in which catagery to fall in?

in stat audit when we have to complete audit in very little time than what we have to do to complete the work in that time.What points we can skip?