CA PCC AUDIT PAPAER

Ans of 2(a) is that is that the auditor will issue qualified report as the co. has violated the rule of Co.act 1956 which allows co to make max payment of onation of either 50000 or 5% of net profits of avg of prev. 3 years whichever is greater.he has given donation of 1 lac ; which the limit is 5pc of rs 15lacs ie 75000 

seems to b ovrconfidnt

Me too attemptted all the questions but at some questions like 2(b), 1(b),issue of shares at discount; As-6 disclosures ; i cudn't recollect all the imp points and write them down. i hope to get 60+.

Does the imp points to consider to consider during audit of hotel means the same as special audit of Hotel,no.

And what about the instructions given by CA to client before audit starting?

PCC audit was quite easy than any other paper on auditin in the recent times. Q 2 was little complicated for me . But Q 3 was an absolute jackpot. Also choices in the question paper was a great sense of relief for the students. It helped a lot especially in 2 marks...

But wat puzzles us is whether there would be choices in Law and other parers or not....

The Paper was really nice...a 10 marks straight forwad Q on SA200 (old AAS1)

N also a q on comenting worth 8 mark was also really a superb one...

 Answer to Q No 2 (a) is based on Section 293(1)(e) of Companies Act 1956 Re. 293.Restrictions on powers of Board

(1) The Board of directors of a public company, or of a private company which is a subsidiary of a public company, shall not, except with the consent of such public company or subsidiary in general meeting,-

(e) contribute, after the commencement of this Act, to charitable and other funds not directly relating to the business of the company or the welfare of its employees, any amounts the aggregate of which will, in any financial year, exceed ³[fifty thousand rupees] Rs50,000, or five per cent (5%), of its average net profits as determined in accordance with the provisions of sections 349 and 350 during the three financial years immediately preceding, whichever is greater. The board may contribute upto Rs.50,000 even if the company is incurring a loss.

In this case the company is giving donation of Rs.50,000 each for  2 charitable causes i.e. 50,000 x 2 = Rs 1,00,000

(i) Rs 50,000

Or

(ii) 5% of Last 3 years Avg Profits Rs. 15,00,000= Rs.75,000

Limit is Higher of above two= Rs75,000

But the company gave Rs.1,00,000. So the Auditor should qualify this in his report.

 easy

 but i dont think its part of ur syllabi question 2 a , lets see , is any one sure that was within ur pcc syllabi

newayz dis tym both d papers viz.,a/cs and auditing are easier

hope the other papers also follow the same saga

newayz dis tym both d papers viz.,a/cs and auditing are easier

hope the other papers also follow the same saga

 Eventhough paper was easy Q 2(a) was related in Sec 293 as well as vouching-payment controlled by The Companies Act,1956. So its not out of syllabus. But weightage matters.....

All situation questions had twists... Overall it was easy.....

Dear Friends !

As far Question Number 7 (a) is concern , the Auditor C can not be appointed on Which grounds Please reply ...........................your replies are welcomed .

regards to All

Amit

Directors can appoint an auditor only in case of casual vacancy (other than resignation).. but in this case the appointment of B was not complete as he declined to be the auditor. So we can say that auditor was never been appointed and thus there is no casual vacancy (Coz casual vacancy arises only when the auditor is appointed and later ceases to be the auditor, otherthan resignation)...Thus the appointment of C is not valid...C can be appointed by only shareholders in the general meeting and not by the board..

correct me if am wrong