Centre for Audit Quality The Institute of Chartered Accountants of India 18th May, 2022 One Day Train the Trainer Programme for prospective trainers for "The Audit Quality Maturity Model v 1.0." The Institute of Chartered Accountants of India through its directorate "Centre for Audit Quality" is continuously focused on addressing the qualitative aspects of the audit and to undertake research in audit and allied areas. Accordingly, the Centre for Audit Quality is under..
Though Companies Act mandated the maintenance of Cost Records and Cost Audit for companies fulfilling certain criteria, however, the companies used to ignore the mandate by simply mentioning in the Director's Report and CARO report that Section 148 is not applicable. But no more such mis-declarations now as the with the use of softwares the companies are being identified and notices are being issued. Its the right time for the companies to check the applicability clause from Companies Cost R..
As you are aware that an Insurance Company is a company incorporated under provisions of the Companies Act, 1956/2013, licensed under the Insurance Act, 1938 and IRDAI Act,1999. An insurance company may engage in life , general or health insurance business. The financial statements of an insurance company are prepared according to the provisions of ; The Companies Act,2013; The Insurance Laws( Amendment) Act,2015 The IRDAI( Preparation of Financial Statements and Auditor’s Report..
SHORT SUMMARY In this editorial, author shall discuss the provision, applicability of Cost Audit and Cost Auditor on Companies along with reason of issuance of Notice from the Cost Department. Applicability of Cost Records As per Rule 3, The class of companies, including foreign companies, engaged in the production of the goods or providing services, specified in the Table A and B of Cost Audit Rules, having an overall turnover from all its products and services of rupees thirty-five cr..
One question always comes to the mind of the compliance officials of the organisations at the beginning of the year that whether they are required to appoint cost auditor or have to maintain cost records and in which form they have to maintain the cost records, if section 148 of the Companies Act is applicable. The concept of reporting with regard to the maintenance of cost records by directors and financial auditors separately was brought in specifically to ensure that there are no misreport..
Working capital finance in the form of cash credit against the security of hypothecation of stock and debtors is one of the most common methods of finance frequently adopted by various bankers. The borrowers in such cases are expected to submit the details of stock available, Balance of debtors and Creditors (Also known as unpaid stock) every month on the basis of which Drawing Power after reducing the prescribed margin as mentioned in sanction letter is calculated by the banks. Stock and debtor..
The Institute of Chartered Accountants of India (ICAI) being the world’s second largest accounting body and regulator of accountancy profession in India has always partnered in Nation Building and provided service to Indian economy in public interest. With the rapidly evolving business environment, introduction of new age companies, start-ups, increased number of companies going public and amidst increasing regulatory and reporting requirements, the role of auditors has increased manifo..
Notification from the government on the audit trail Companies have been granted a year to implement the Ministry of Corporate Affairs' latest change in accounting software to use the audit trail (edit log) feature. The audit trail will be mandatory for private limited firms starting April 1, 2022, according to a decision made this year. However, Notification MCA, in a letter dated March 31, 2022, states that the deadline for using accounting software with an audit trail feature has bee..
Auditing and Assurance Standards Board The Institute of Chartered Accountants of India 9th April, 2022 Invitation for Expression of Interest for Empanelment as Subject Matter Expert in the Statutory Audit of Entities pertaining to Auditing Aspects The Institute of Chartered Accountants of India (ICAI) being the world’s second largest accounting body and regulator of accountancy profession in India has always partnered in Nation Building and provided service to Indian economy in pub..
The RBI had issued certain clarifications vide its notification dated 12th Nov 2021 with a purpose to more accurately interpret the extant IRAC norms which we must keep in mind while conducting branch audits this time. The gist of the same are reproduced below which are very important from the perspective of deciding correct date of classifying various loan accounts as SMA or NPA, further downgradation of NPA accounts, in ascertaining quantum of interest reversal and also in creating provision a..
The social media has emerged as a strong interactive platform and it has started to make a huge positive impact on the society. Almost everyone today has a Facebook, LinkedIn, Instagram or Twitter account. It is estimated that there are more than 3 billion active social media users. While Facebook and its peers dominate the social media landscape in many parts of the world, there are some platforms that remain specific to one market. While social media is generally popular for personal use, i..
A. ARRIVING DRAWING POWER The SBA should verify the details of stock statement dated 31st March of 2021 submitted to the bank and the values of drawing power claimed therein with the values reported in audited balance sheet of 31-03-2021 and compare the drawing power as given below: Rs In Lakhs SL NO Description As per audited Balance sheet Dt 31-03-2021 As per Stock Statement submitted for March 2021. ..
The importance of cyber risk assessment has increased manifold due to the pandemic. Some of the cyber threats which has developed over the last two years during the pandemic were the ransomware where the attack has increased by 150% due to the "Work from home" culture. Since the culture of the work from home encourages the individual to perform activities from home using their own network and internet connection. The transfer of data happens through the open source resulting in the ris..
Auditing and Assurance Standards Board Guidance Note on Audit of Banks (2022 Edition) The Institute of Chartered Accountants of India 10th February, 2022 A. Foreword and Preface of Past Years B. Text of Guidance Note on Audit of Banks (2022 Edition) C. Appendices of the Guidance Note on Audit of Banks (2022 Edition) Appendices of Section A - Statutory Central Audit of Guidance Note on Audit of Banks (2022 Edition) Appendices of Section B - Bank Branch Audit of Guida..
2020 was a landmark year which has created many unprecedented changes in the lives around the world. It had disrupted lives / labour force, business operations, insolvency risks, resulted in inflation and supply chain. The pandemic has introduced us to new methodology of working by introducing a new concept of "Working from home". The introduction of new way of working has resulted in many cyber threats which the auditors need to address while doing the audit subsequent to 2020. High dependency ..
This article is the final part of the series on the Tax Audit and Form 3CD and I’ll be discussing clause 32 to 44 through this article. Clause Particulars Comments 32 (a) Details of brought forward loss or depreciation allowance to the extent available Such amounts need to be revised for any change arising out of a rectification order, assessment order, etc. ..
In this article I'm discussing clause 26 to 31 of Form 3CD. Let's get started- Clause Particulars Comments 26 In respect of any sum referred to in clauses (a), (b), (c), (d), (e), (f) or (g) of section 43B, the liability for which:- This section allows certain expenditure like taxe,duty cess or fee,contribution to PF, gratuity fund etc, conus/commission to employees, i..
If you have been following the series of these articles, we have discussed till Clause 20 of Form 3CD. Without further delay, let us discuss Clause 21 to 25 in this article. Clause Particulars Comments 21 (a) Please furnish the details of amounts debited to profit and loss account, being in the nature of capital, personal, advertisement expenditure etc. The nat..
In continuity with the series of articles on tax audit, let us discuss clause 15 to clause 20 of Form 3CD in detail with this article. Clause Particulars Comments 15 Give the following particulars of the capital asset converted into stock-in-trade: (a) Description of capital asset; Description of the capital asset is re..
In the previous part of the article, I had discussed tax audit and its applicability. In this article I'll be discussing about Form 3CD from Clause 1 to 14 in detail- Sl. No. Particulars Comments 1 Name of the assessee This clause requires the auditor to state the name, address and PAN/Aadhaar of the assessee whose accounts are being audited. The auditor should also ensure..