audit finals wosa - · pdf filechapter-1 (nature of auditing) audit: independent examination...

Prepared by: Yogesh Gupta ‐Page No: 1‐ http://facebook.com/mr.yogeshgupta For more notes: [email protected] visit me at: http://bit.ly/yogeshgupta

Summarize Notes On Audit for CA-I/PCC Please read your book first and after go through these notes, it is writing in a summarizing manner, when you read this at the time of revision, this will help you. Best of luck for your exams. – Yogesh Gupta

2013

Yogesh Guptahttp://yogeshguptarohtak.wordpress.com

http://yogeshguptarohtak.blogspot.com

YOGESH GUPTA Student CA-Final, CS-Executive

Bachelor in Buss. Admn. (June ’11)

Tel: +91 80596-35006 Write me at: [email protected]


CHAPTER-1 (NATURE OF AUDITING)

Audit: Independent Examination of financial information contained in financial statements for expressing an opinion regarding true & fair view.

Fraud & Error’s Detection & prevention’s duty is by management not by auditor, while auditor’s duty to consider the impact of fraud & investigation.

ACCOUNTING AUDITING INVESTIGATION

Concerned with recording of Transactions and Preparation of Financial Statements

Independent Examination of financial information contained in financial statements.

Systematic, critical examination of records for a special purpose.

SA 200 (AAS - 1) SA 200A (AAS – 2) SA 240 (AAS – 4)

Basic Principles Governing an Audit Objectives and Scope of the Audit of Financial Statements

Auditor’s Responsibility relating to Fraud in an Audit of Financial Statements.

GENERAL PURPOSE FINANCIAL STATEMENTS

TYPES OF AUDIT TYPES OF AUDITORS QUALITIES OF AUDITOR

Include: (a) Balance Sheet (b) Profit & Loss Account (c) Cash Flow Statement (d) Notes on accounts and

Explanatory statements

• Statutory Audit (Required under Law)

• Voluntary Audit (Not required under law)

1. Internal Auditor- Appointed by Management

2. External Auditor (Statutory Auditor) - Appointed by Company

1. Technical Qualities: Sound knowledge of accountancy, auditing, taxation & corporate laws.

2. Personal Qualities: Objectivity, integrity, independence, confidentiality, communication skills reliability and trust.

OBJECTIVES OF AUDIT

PRIMARY OBJECTIVE(SA 200A) SECONDARY OBJECTIVE (SA 240)

Expression of Opinion on True & Fair view of Financial Statements

Consideration of Risk of Material misstatements resulting from Fraud and Error

SA 200 BASIC PRINCIPLES GOVERNING AN AUDIT

SA 200A (AAS – 2) SCOPE OF AUDIT

INHERENT LIMITATIONS OF AUDIT

1. Integrity, Objectivity and Independence 2. Confidentiality 3. Skills and Competence 4. Work performed by others 5. Documentation 6. Planning 7. Audit Evidence 8. Accounting Systems and Internal Controls 9. Conclusion and Reporting

Determined by: 1. The terms of the

engagement 2. The requirements of the

relevant legislation e.g. CARO 2004

3. The pronouncements of the Institute (ICAI)

Due to: 1. Use of judgment 2. Use of Test Checking 3. Weaknesses in internal control 4. Persuasive nature of evidence

Last Minute Study Trick


CHAPTER-2 (BASIC CONCEPTS IN AUDITING)

AUDIT EVIDENCE AUDITOR’S INDEPENDENCE TRUE AND FAIR VIEW

Meaning: Any information, verbal or written obtained by the auditor on which he bases his opinion.

Objective: Audit evidence is one of the basic principles and requires that the auditor should obtain sufficient and appropriate audit evidence through the performance of compliance and substantive procedures to enable him to draw reasonable conclusions there from on which to base his opinion on the financial statements.

Sufficient and Appropriate Audit Evidence: Sufficiency of evidence refers to quantum of evidence; and appropriateness refers to relevance and reliability.

Types of Audit Evidence: • Depending upon its source may be classified as: Internal,

and External. • Depending upon nature, may be classified as: Visual,

Documentary, and Oral Evidence Reliability of Audit Evidence:

(a) External evidence is usually more reliable than internal evidence.

(b) Internal evidence will be more reliable, when related internal controls are satisfactory

(c) Evidence obtained by the auditor himself is more reliable than evidence obtained from entity.

(d) Documentary evidences are more reliable than oral representations.

Audit procedures: A) Compliance B) Substantive A) Existence, Effectiveness & Continuity of the control system) B) Completeness, Accuracy & Validity of data produced by the

accounting system) i) Vouching & Verification ii) Analytical Review Procedures

Methods of Obtaining Audit Evidence: Inspection, Observation, Inquiry and confirmation, Computation and Analytical Review.

SA-200 Independence implies that the judgment of a person is not subordinate to the wishes or directions of another person who might have engaged him. It stipulates that the independence is a condition of minds and personal character and should not be confused with the visible standards of independence. Visibility: “Independence of auditors must not only exist infact, but should also appear to exist to all reasonable persons”.

Objective: The main objective of an independent audit is to lend credibility to financial information contained in financial statements by expressing an independent opinion. According to Sec-226 of companies law these are not authorized as auditor: a) Employer b) Security Holder c) Indebtness > Rs.

1000/-

The phrase “true and fair” in the auditor's report signifies that the auditor is required to express his opinion as to whether the state of affairs and the results of the entity as ascertained by him in the course of his audit are truly and fairly represented in the accounts under audit.

What constitutes “true and fair” has not been defined in the legislation.

In specific terms to ensure truth and fairness, an auditor has to see:

(i) that the assets and liabilities are neither undervalued or overvalued;

(ii) the charge on assets, if any, is disclosed;

(iii) accounting policies have been followed consistently;

(iv) all unusual, exceptional, non recurring items have been disclosed separately;

(v) Accounts have been drawn as per requirement of Schedule VI to the Companies Act & AS.





MATERIALITY SA-320 DISCLOSURE OF ACCOUNTING POLICIES AS – 1)

AS-1 - Material items are “items, the knowledge of which might influence the decisions of the users of the financial statements. Information is material if its mis-statement could influence the economic decisions of users taken on the basis of the financial information. Factors influencing materiality: Materiality may be influenced by

Legal and regulatory requirements Considerations which may have a significant

bearing on the financial information, and Considerations relating to individual account

balances and relationships. Relation in audit materiality & audit risk: INVERSE High Material error: Low Audit risk Low Material error: High Audit risk

Auditor has to show separately which are material in book

Materiality can be judged from two items: P&L or B/Sheet AND with comparison from last year.

1) Meaning of Accounting Policies: Specific accounting principles and the method of applying those principles in the preparation & presentation of financial statements.

2) Factors affecting accounting policies: Prudence, Substance over form and Materiality

3) Fundamental Accounting Assumptions: Going Concern, Consistency and Accrual\

4) Areas in which different accounting policies may be encountered: Method of depreciation, Treatment of expenditure during construction Valuation of inventories, Treatment of goodwill, Valuation of investment etc.

5) Disclosure requirements: AS–1 recommends as under: a) All significant accounting policies adopted in the preparation and

presentation of financial statements should be disclosed. b) The disclosure should form part of financial statements and

should normally be at one place c) If the fundamental accounting assumptions are followed, specific

disclosure is not required. If a fundamental accounting assumption is not followed, the fact should be disclosed.



CHAPTER-3 (PREPARATION FOR AN AUDIT)

AUDIT PROGRAM AUDIT WORKING PAPERS

Detailed plan of work Prepared by auditor For carrying out audit

An Audit programme is a detailed plan of work, prepared by the auditor for carrying out an audit. It is comprised of a set of techniques and procedures, which the auditor plans to apply in the given audit for forming an opinion about the client’s statement of account. It not only constitutes the plan of the work but also provides a basis for the supervision and control of the audit work

Meaning: Working papers are written records prepared /kept by the auditor for: i. aiding in the planning and performance of the audit; ii. aiding in the supervision and review of the audit work; and iii. Providing evidence of the audit work performed to support the auditor’s opinion.

Importance:

Guidelines to audit staff Auditor able to fix responsibility on staff member Evidence Planning

Type of Audit File: Permanent Audit File Current Audit File

PERMANENT AUDIT FILE CURRENT AUDIT FILE

a) Memorandum and Articles of Association. b) Copies of important legal documents c) Details of study & evaluation of internal

controls in the form of narrative record, questionnaires or flow charts etc.

d) Copies of audited statements of previous years.

e) Analysis of significant ratios and trends. f) Copies of management letter, if any g) Record of communication with the retiring

auditor. h) Notes regarding significant accounting

policies. i) Significant audit observations of earlier

years.

Correspondence relating to

acceptance of annual reappointment. Copies of minutes of Board

Meetings and General Meetings as are relevant to audit.

Audit Programme Analysis of transactions and

balances. Record of the nature, timing, and

extent of audit procedures. Evidence to show that the work

performed by assistants was supervised and reviewed.

Copies of communication with other auditors, experts and other third parties.

Matters discussed with client

ADVANTAGE DISADVANTAGE

• Provide guideline & instruction

• Clear record of work

• Audit work can be reviewed

• Nil Chance of duplication

• Nil Chance of overlooking

• Easily evidence • Save as guide

for auditor in future.

• Mechanical & monotonous work

• Partly work has no value

• Initiative of audit staff is discouraged if program is rigidly followed.





AUDIT PLANNING AUDITOR’S ENGAGEMENT: KNOWLEDGE OF CLIENT BUSINESS

Scope of Audit Planning: Plans should be made to cover, among other things

the followings: Acquiring knowledge of client’s business; Establishing the expected degree of reliance to be

placed on internal control; Determining the nature, timing and extent of the

audit procedures to be performed; Coordinating the work to be performed.

Objectives of Audit Planning: Adequate audit planning facilitates: Devoting appropriate attention to important areas of

the audit; Prompt identification of potential problems; Expeditious completion of work; Coordination of work done by other auditors &

experts. Documentation of Audit Plan: The auditor should document his overall plan. And develop the audit Programme.

The auditor should send an engagement letter to the client, before the commencement of the engagement, to help avoid any misunderstanding with respect to the engagement. It generally include reference to: (a) Objective of audit of

financial statements. (b) Management’s

responsibility regarding the followings:

(c) Scope of Audit (d) Test nature of audit and

inherent limitations of non-detection of some material misstatement resulting from fraud.

(e) Unrestricted access to records, documentation and other information required.

Knowledge of the business is a frame of reference within which the auditor exercises professional judgment. The auditor can obtain knowledge of the industry and the entity from a number of sources. For example:

Previous experience with the entity and its industry,

discussion with people with the entity (for example, directors & operating personnel),

discussion with internal audit personnel; and

review of internal audit reports, etc.

AUDIT NOTE BOOK AUDIT TECHNIQUES CONTINUOUS AUDIT: AUDIT SAMPLING

An audit note book is usually a bound book in which a large variety of matters observed during the course of audit are recorded. Audit note book form part of audit working papers and for each year a fresh audit note book is maintained

Methods and means adopted by an auditor for collection and evaluation of audit evidence in different auditing situations. For Example: physical examination, confirmation, inquiry, calculation of ratios; etc.

Concurrent audit, thus, aims to examine transactions almost instantaneously as soon as the transaction occurs leading to shortening of the time interval between a transaction and its examination by an independent person not involved in its documentation.

The application of audit procedures to less than 100% of the items within an account balance or class of transactions to enable the auditor to obtain and evaluate audit evidence about some characteristic of the items selected in order to form or assist in forming a conclusion concerning the population. Methods of Sampling:

Random Sampling, Systematic Sampling Haphazard Sampling.

QUALITY CONTROL FOR AUDIT WORK SURPRISE CHECK: REPRESENTATION BY MANAGEMENT

AAS-17, "Quality Control for Audit Work" requires that the audit firm should implement quality control policies and procedures designed to ensure that all audits are conducted in accordance with Statements on Auditing and Assurance Standards (AASs).

Surprise checks are mainly intended to ascertain whether the internal control system is working effectively, and whether all accounting and other records are kept up to date and as per the statutory regulations. Such checks and surprise visit can exercise good moral checks on the client's staff.

Management representation constitutes audit evidence furnished by management to auditor in respect of any transaction entered into by the entity. Management Representation is of great use to the auditor when other sufficient appropriate audit evidence cannot reasonably be expected to exist.



TEST CHECKING AUDIT RISK:

Audit procedure wherein an audit is conducted on the basis of a part checking. Precautions in the application of test-checking techniques: • Appropriate classification and stratification of the transactions. • Sequential study of transactions from beginning to end • Evaluation of efficiency and soundness internal control system • Biasness should not enter into the selection. • Identification of the areas where test check may not be done. • The number of transactions to be selected should be

predetermined.

Items not suitable for test-checking: • Opening and closing entries. • Bank reconciliation statement. • Balance sheet items. • Matters involving estimation as well as computation, e.g.,

depreciation, royalty, etc. • Transactions which may be small in number but may be

important and material. • Transactions which are recognized by law to be looked into by

the auditor carefully, e.g., managerial remuneration, etc. • In case of seasonal industry, the auditor should not resort to

test checking on annual basis. • Transactions of non-recurring nature or exceptional transactions

may not be conducive for test checking.

Audit risk is the risk that an auditor may give an inappropriate opinion on financial information which is materially misstated. COMPONENTS OF AUDIT RISK:

•nherent risk,

•ontrol Risk

•etection Risk.

The inherent and control risks are functions of the entity’s business and its environment and the nature of the account balances or classes of transactions, regardless of whether an audit is conducted. Even though inherent and control risks cannot be controlled by the auditor, the auditor can assess them and design his substantive procedures to produce on acceptable level of detection risk, thereby reducing audit risk to an acceptable low level. Elaboration in simple way: Inherent: Susceptibility of transaction to be record wrongly or fraudulent activity of mgmt. Control: Material, but would not be prevented or quickly detected by the mgmt. control. Detection: Risk, which is not detected by the auditor. RELATIONSHIP BETWEEN MATERIALITY AND AUDIT RISK There is an inverse relationship between Materiality and the degree of audit risk. Higher the materiality level, the lower the audit risk and vice-versa.

DOCUMENTATION:

Recording of important observations and information in a systematic manner to enable formation of audit conclusions at the end of audit

PROCEDURES VS AUDIT TECHNIQUE:

Procedures are a BROAD term while audit technique is method to carrying on the procedures.

Procedures require an examination of documentary evidence. This job is performed by the other procedures known as vouching which include techniques of inspection & checking of documentary evidence.





CHAPTER-4 (INTERNAL CONTROL)

INTERNAL CONTROL INTERNAL CHECK INTERNAL AUDIT:

System of internal control may be defined as the plan of organization, and all the methods and procedures adopted by the management of an entity to assist in achieving management's objective

Review of Internal Control by mgmt: It is required to ascertain: • Whether the prescribed management

policies are being properly interpreted by the employees and are faithfully implemented.

• Whether the prescribed procedures need a revision because of changed circumstances or whether they have becomes obsolete or cumbersome.

• Whether effective measures are taken promptly when the system appears to break down.

Review of Internal Control by Auditor: The auditor’s objective in studying and evaluating internal controls is to establish the reliance he can place thereon in determining the nature, timing and extent of his substantive audit procedures. Methods of collecting information: Narrative record, Check List, Internal Control Questionnaire, Flow-chart Testing of Internal Control System: It may include: • Inspection of documents supporting

transactions and other events to gain audit evidence that internal controls have operated properly.

• Inquiries about and observation of internal controls which leave no audit trail.

• Re-performance of internal controls. • Testing of internal controls operating on

specific computerised applications.

Examination in Depth: It implies examination of a few selected transactions from the beginning to the end through the entire flow of the transaction, i.e., from initiation to the completion of the transaction by receipt or payment of cash and delivery or receipt of the goods.

Internal check has been defined by the Institute of Chartered Accountants in England and Wales, as the • checks on day-to-day

transactions; • which operate

continuously as part of the routine system;

• whereby the work of one person is proved independently or complimentary to the work of another,

• the object being the prevention or earlier detection of error or fraud”.

General considerations in framing a system of Internal Check: • No single person should

have an independent control over any important aspect.

• The duties of members of the staff should be changed from time to time.

• Persons having physical custody of assets must not be permitted to have access to the books.

• Budgetary control would enable the management to review from time to time the progress of trading activities.

• The financial and administrative powers should be distributed very judiciously.

• Procedures should be laid down for periodical verification and testing of different sections of accounting records to ensure that they are accurate.

Independent appraisal activity within an organisation, for the review of operations as a service to the organisation. It is a managerial control which functions by measuring and evaluating the effectiveness of other controls.

Scope Appraisal

• Review of accounting system & related internal controls

• Examination for management of financial and operating information

• Examination of the economy, efficiency and effectiveness of operations including non-financial controls of an organisation

• Physical examination and verification

• Organisational status:

• Scope of function • Technical

competence • Due professional

care • Follow up of

recommendations

Relationship between the Statutory Auditor and Internal Auditor: is a professional relationship wherein both can benefit from each other.

Reliance on the Work of Internal Auditor: It is a matter of individual judgment in a given set of circumstances. The ultimate responsibility for reporting on the financial statements is that of the statutory auditor.



CHAPTER-4B (AUDIT IN AN CIS ENVIRONMENT)

MEANING & OBJECTIVE

OBJECTIVE AND SCOPE OF AUDIT IN CIS

ENVIRONMENT:

INTERNAL CONTROL IN A COMPUTER-BASED

SYSTEM

COMPUTER AIDED AUDIT TECHNIQUES (CAATs)

Distinction between computer-based system of accounting and conventional nature: • Absence of Input

documents • Design • Complexity &

Reliability • Organizational

structure • Lack of Visible Audit

Trail Problems encountered while shifting from manual based accounting records to computer based accounting records: • Difficulty in Visual

Observation. • Inability to observe

the processing due to internal storage

• Making changes in Programmes without the auditor’s knowledge.

• Disappearance of Audit Trail:

• Use of High-level languages:

The overall objective and scope of an audit does not change in an CIS environment but the use of a computer changes the processing and storage of financial information and may affect the organisation and procedures employed by the entity to achieve adequate internal control. General considerations in framing a system of Internal Check: • No single person should have

an independent control over any important aspect.

• The duties of members of the staff should be changed from time to time.

• Persons having physical custody of assets must not be permitted to have access to the books.

• Budgetary control would enable the management to review from time to time the progress of trading activities.

• The financial and administrative powers should be distributed very judiciously.

• Procedures should be laid down for periodical verification and testing of different sections of accounting records to ensure that they are accurate.

1. GENERAL CIS CONTROLS:

2. CIS APPLICATION CONTROLS:

GENERAL CIS CONTROLS: The purpose of general CIS controls is to establish a framework of overall control over the CIS activities and to provide a reasonable level of assurance that the overall objectives of internal control are achieved. These controls may include: • Organisation and

management controls • Application systems

development and maintenance controls

• Computer operation controls

• Systems software controls

• Data entry and program controls

CIS APPLICATION CONTROLS: The purpose of CIS application controls is to establish specific control procedures over the accounting applications to provide reasonable assurance that all transactions are authorised and recorded, and are processed completely, accurately and on a timely basis. These include: • Controls over input • Controls over

processing and computer data files

• Controls over output

Techniques with the help of which auditor carried out the work of audit are known as CAAT. The auditor can use the computer to test: • the logic and controls existing

within the system, and • the records produced by the

system.

System characteristics resulting from the nature of CIS processing that demand the use of (CAAT) are: • Absence of input documents • Lack of visible transaction trail • Lack of visible output • Ease of Access to data and

computer programmes

Advantages of CAAT: Audit effectiveness, Savings in time, Effective test checking and examination in depth: Approaches to audit in CIS environment Two approaches - “auditing around the computer” and “auditing through the computer”.

AUDIT TRAIL: It refers to a situation where it is possible to relate, on a “one-to-one” basis, the original input with the final output.





AUDITING AROUND THE COMPUTER VS. AUDITING THROUGH THE COMPUTER

BASE Auditing around the computer Auditing through the computer Recognition of computers

Computers are recognised as mechanical aids for book keeping only.

Computers are recognized as targets of auditing and are used live for auditing.

Focus of Audit

Compare input vouchers with system outputs to obtain audit assurance.

To peruse the accounting systems and software used to provide audit assurance on various aspects of control.

Use of computers

Computers are used as Black Box only. Computers are used to check calculations, comparing the contents, analyzing the accounting ratio by comparing them etc.

Use of CAATs CAAT’s are not used. CAAT’s and other audit software tools are used for auditing.



CHAPTER-5 (COMPANY AUDIT-1)

APPOINTMENT & REMUNERATION OF AN

AUDITOR

APPOINTMENT OF AN AUDITOR BY

PASSING SPECIAL RESOLUTION

PROVISIONS AS TO APPOINTING/REMOVING AUDITOR REMOVAL OF AN AUDITOR AFTER EXPIRY OF HIS TERM)

QUALIFICATIONS AND DISQUALIFICATIONS OF AN

AUDITOR

UNDER SECTION 224 & SUBSECTION: •• ((11)) AAppppooiinnttmmeenntt bbyy

SShhaarreehhoollddeerrss aatt aann AAGGMM.. •• ((11AA)) IInnttiimmaattiioonn ttoo RROOCC

wwiitthhiinn 3300 ddaayyss tthhrroouugghh FFoorrmm NNoo.. 2233BB..

•• ((11BB)) CCeeiilliinngg oonn nnuummbbeerr ooff AAuuddiitt aassssiiggnnmmeennttss..

• ((22)) RRee--aappppooiinnttmmeenntt ooff aann Auditor.

• (3) Appointment by Central Government.

• (4)Intimation to ROC for non-appointment within 7 days from the date of an AGM.

• (5) Appointment of the First Auditor within 1 month of Reg.

• (6) Filling of Casual Vacancy.

• (6A) Filling of Casual Vacancy by Board of Directors.

• (6B)Tenure of such appointment till conclusion of next AGM.

• (7) Removal of an Auditor before expiry of his term.

• (8) Remuneration of an auditor.

UNDER SECTION 224A: AAllll tthhoossee ccoommppaanniieess iinn wwhhiicchh nnoott lleessss tthhaann 2255%% ooff tthhee SSuubbssccrriibbeedd SShhaarree CCaappiittaall iiss hheelldd bbyy::

•• AA ppuubblliicc ffiinnaanncciiaall

iinnssttiittuuttiioonn oorr aa ggoovveerrnnmmeenntt ccoommppaannyy oorr CCeennttrraall ggoovveerrnnmmeenntt oorr aannyy ooff tthhee ssttaattee ggoovveerrnnmmeenntt;;

•• ((bb)) AAnnyy ffiinnaanncciiaall oorr ootthheerr iinnssttiittuuttiioonn eessttaabblliisshheedd bbyy aannyy pprroovviinncciiaall oorr ssttaattee AAcctt iinn wwhhiicchh aa ssttaattee ggoovvtt.. hhoollddss nnoott lleessss tthhaann 5511%% ooff tthhee ssuubbssccrriibbeedd sshhaarree ccaappiittaall;;

•• ((cc)) AA NNaattiioonnaalliisseedd BBaannkk oorr aannyy IInnssuurraannccee CCoommppaannyy ccaarrrryyiinngg GGeenneerraall IInnssuurraannccee BBuussiinneessss;;

•• ((dd)) AAnnyy ooff tthhee aabboovvee ccoommbbiinnaattiioonnss..

UNDER SECTION 225 & SUBSECTION:

11.. SSppeecciiaall 1144 ddaayyss nnoottiiccee

iiss ttoo bbee ggiivveenn ttoo aallll tthhee mmeemmbbeerrss-- aa.. AAppppooii

nnttiinngg aannootthheerr ppeerrssoonn aass aann aauuddiittoorr;;

bb.. PPrrooppoossiinngg tthhaatt rreettiirriinngg aauuddiittoorr sshhaallll nnoott bbee rreeaappppooiinntteedd..

22.. AA ccooppyy ooff ssuucchh nnoottiiccee iiss ttoo bbee ggiivveenn ttoo tthhee rreettiirriinngg aauuddiittoorr aallssoo..

33.. PPrroocceedduurree ffoorr ssuucchh aa rreemmoovvaall aanndd ffoorr ffoorrwwaarrddiinngg tthhee ccooppyy ooff rreepprreesseennttaattiioonn ffrroomm tthhee rreettiirriinngg aauuddiittoorr iinn aann AAGGMM..

U/S 226 & SUBSECTION: 11.. AAnn aauuddiittoorr sshhoouulldd bbee aa

CChhaarrtteerreedd AAccccoouunnttaanntt ddeeffiinneedd uunnddeerr ‘‘TThhee CChhaarrtteerreedd AAccccoouunnttaanntt AAcctt ooff 11994499’’

22.. RReessttrriicctteedd SSttaattee AAuuddiittoorrss 33.. DDiissqquuaalliiffiiccaattiioonnss::

aa.. aa bbooddyy ccoorrppoorraattee;; bb.. aann ooffffiicceerr oorr aann

eemmppllooyyeeee ooff tthhee ccoommppaannyy;;

cc.. aa ppeerrssoonn wwhhoo iiss aa ppaarrttnneerr,, oorr wwhhoo iiss iinn eemmppllooyymmeenntt ooff aann ooffffiicceerr oorr eemmppllooyyeeee ooff tthhee ccoommppaannyy;;

dd.. aa ppeerrssoonn wwhhoo iiss iinnddeebbtteedd ttoo tthhee ccoommppaannyy ffoorr mmoorree tthhaann RRss..11,,000000 oorr wwhhoo hhaavvee pprroovviiddeedd aannyy sseeccuurriittyy oorr gguuaarraanntteeee aaggaaiinnsstt aa tthhiirrdd ppeerrssoonn wwhhoo iiss iinnddeebbtteedd ttoo tthhee ccoommppaannyy ffoorr mmoorree tthhaann RRss..11,,000000;; aanndd

ee.. AA ppeerrssoonn wwhhoo hhoollddss tthhee sseeccuurriittyy ooff tthhee ccoommppaannyy..

44.. IIff aa ppeerrssoonn iiss ddiissqquuaalliiffiieedd ttoo bbee aann aauuddiittoorr ooff aa ssuubbssiiddiiaarryy ccoommppaannyy,, tthheenn hhee iiss ddiissqquuaalliiffiieedd ttoo bbee aauuddiittoorr ooff iittss HHoollddiinngg CCoommppaannyy aanndd iittss ootthheerr ssuubbssiiddiiaarriieess

55.. IIff aa ppeerrssoonn iiss ddiissqquuaalliiffiieedd ttoo bbee aann aauuddiittoorr uunnddeerr ssuubb--sseeccttiioonnss ((33)) aanndd ((44)),, tthheenn hhee hhaavvee ttoo vvaaccaanntt hhiiss ooffffiiccee





POWERS AND DUTIES OF AN AUDITOR AUDIT OF ACCOUNTS OF BRANCH OFFICE OF THE

COMPANY UNDER SECTION 227 & SUBSECTION: • 227(1) Right of access to books of accounts & right to require information and

explanation from officers. • Duties of an Auditor:

Loans & Advances made by the company secured & prejudicial to the interest of the company,

Whether transactions of the company which are represented merely by book entries are not prejudicial to the interests of the company.

Where the company is not an Investment Company as defined in Sec.372 or Banking Company, which sells its assets & securities at the price less than its purchase price.

Loans & Advances have been shown as deposits. Whether personal expenses have been charged to revenue account. If no cash has been received in respect of shares then whether the position

stated in balance sheet is correct, regular and not misleading. (Auditor have to give reason for both negative & positive remarks)

• 227(2) Auditors should report whether the said accounts complies with all the compliances of The Companies Act, 1956.

• 227(2bb) If proper returns as required by auditor of the branches not visited by him are not received by him then he must state this fact in his audit report.

• 227(3) The auditor should report on the following matters: a) Whether he has obtained all the information and explanations which to the

best of his knowledge and belief were necessary for his audit. b) Whether in his opinion proper books of accounts as required by law are

kept by the company and proper returns have been received by him of the branches not visited by him.

(bb) Whether the reports on accounts of any branch offices audited u/s 228 have been forwarded to him as required u/s 228(3) (c) & the manner in which he have dealt with it for preparing auditor’s report.

c) Whether the company’s Balance Sheet & P/L Account are in agreement with the books of accounts & returns.

d) Whether in his opinion Balance Sheet & P/L A/c complies with the accounting standards u/s 211(3c).

e) The auditor has highlighted adverse effects in companies functioning by thick or italic type.

f) Whether any director has been disqualified from being appointed as director u/s 274(1) (g).

g) Whether cess payable u/s 441A (levy & collection of cess on turnover or gross receipts of the company) has been paid, if not, details of amount not so paid.

• Issuance of Companies (Auditor’s Report) Order, 2003, (CARO, 2003) vide notification no. G.S.R 480(E) dated June 12th, 2003

(Auditor must state the reasons only for negative remarks made by him in his report).

UNDER SECTION 228 & SUBSECTION:

11)) AAuuddiitt ooff aaccccoouunnttss ooff bbrraanncchh

ooffffiiccee ooff tthhee ccoommppaannyy ccaann bbee ccoonndduucctteedd bbyy tthhee ppeerrssoonn aappppooiinntteedd uu//ss 222244 oorr tthhee ppeerrssoonn qquuaalliiffiieedd uu//ss 222266 oorr,, iiff bbrraanncchh iiss iinn ffoorreeiiggnn ccoouunnttrryy tthheenn bbyy aannyy ccoommppeetteenntt ppeerrssoonn qquuaalliiffiieedd ttoo ddoo tthhee aauuddiitt aass ppeerr tthhee rruulleess ooff tthhaatt nnaattiioonn..

22)) IIff tthhee aaccccoouunnttss ooff tthhee bbrraanncchh ooffffiiccee aarree aauuddiitteedd bbyy tthhee ppeerrssoonn ootthheerr tthhaann tthhee ccoommppaanniieess aauuddiittoorr,, tthheenn tthhee llaatttteerr hhaavvee rriigghhtt ttoo vviissiitt tthhee bbrraanncchh ooffffiiccee && ttoo aacccceessss ttoo tthhee bbooookkss ooff aaccccoouunnttss,, eexxcceepptt iinn ccaassee ooff tthhee bbaannkkiinngg ccoommppaanniieess hhaavviinngg ffoorreeiiggnn bbrraanncchh ooffffiicceess,, tthhee aaccccoouunnttss ooff ssuucchh bbrraanncchheess mmaayy bbee ttrraannssmmiitttteedd ttoo tthhee hheeaadd ooffffiiccee iinn IInnddiiaa ffoorr tthhee aauuddiittoorr’’ss iinnssppeeccttiioonn..

33)) IItt wwiillll bbee dduuttyy ooff tthhee bbrraanncchh aauuddiittoorr ttoo pprreeppaarree tthhee aauuddiitt rreeppoorrtt ffoorr tthhaatt bbrraanncchh && ffoorrwwaarrdd iitt ttoo tthhee ccoommppaannyy’’ss aauuddiittoorr,, wwhhoo sshhaallll wwhhiillee pprreeppaarriinngg hhiiss rreeppoosstt ddeell wwiitthh tthhee ssaammee iinn tthhee mmaannnneerr hhee ccoonnssiiddeerrss nneecceessssaarryy..

44)) PPoowweerr ooff CCeennttrraall GGoovveerrnnmmeenntt ttoo eexxeemmpptt tthhee bbrraanncchh ooffffiicceess ffrroomm aauuddiitt ttoo tthhee eexxtteenntt aass ssppeecciiffiieedd iinn rruulleess,, eennttiittlleedd ““TThhee CCoommppaanniieess ((BBrraanncchh AAuuddiitt EExxeemmppttiioonn)) RRuulleess,, 11996611””..



222299

SSiiggnniinngg ooff tthhee AAuuddiitt RReeppoorrtt WWhheenn aa ssiinnggllee CC..AA iiss pprraaccttiissiinngg,, tthheerree ccaann’’tt bbee aannyy qquueessttiioonn ooff aannyy ffiirrmm nnaammee.. WWhheenn aa ffiirrmm ooff aa CC..AA iiss aappppooiinntteedd aass aann aauuddiittoorr,, tthheenn oonnllyy aa ppaarrttnneerr mmaayy ssiiggnn tthhee rreeppoorrtt..

223300

RReeaaddiinngg aanndd IInnssppeeccttiioonn ooff tthhee AAuuddiittoorr’’ss RReeppoorrtt AAuuddiitt rreeppoorrtt ooff tthhee ccoommppaannyy mmuusstt bbee rreeaadd oouutt bbeeffoorree tthhee sshhaarreehhoollddeerrss aatt aann aannnnuuaall GGeenneerraall MMeeeettiinngg aanndd sshhoouulldd bbee kkeepptt ffoorr iinnssppeeccttiioonn aatt tthhee ccoommppaannyy’’ss rreeggiisstteerreedd ooffffiiccee ffoorr tthhee iinnssppeeccttiioonn ooff eevveerryy mmeemmbbeerr ooff tthhee ccoommppaannyy..

223311

RRiigghhtt ooff aann aauuddiittoorr ttoo aatttteenndd aann AAnnnnuuaall GGeenneerraall MMeeeettiinngg TThhee aauuddiittoorr ccaann aatttteenndd aannyy AAnnnnuuaall GGeenneerraall MMeeeettiinngg ooff tthhee ccoommppaannyy ((nnoott rreessttrriicctteedd ttoo tthhoossee aatt wwhhiicchh tthhee aaccccoouunnttss aauuddiitteedd bbyy tthheemm aarree ttoo bbee ddiissccuusssseedd)) aanndd iiss eennttiittlleedd ttoo aallll tthhee nnoottiicceess aanndd ootthheerr ccoommmmuunniiccaattiioonnss rreellaatteedd ttoo tthhee ggeenneerraall mmeeeettiinngg ffoorr wwhhiicchh aa mmeemmbbeerr ooff tthhaatt ccoommppaannyy iiss eennttiittlleedd,, bbuutt iitt iiss nnoott oobblliiggaattoorryy aatt hhiiss ppaarrtt ttoo aatttteenndd tthhee AAGGMM.. HHee ccaann hheeaarr iinn tthhee mmeeeettiinngg bbuutt ccaann’’tt ttaakkee ppaarrtt iinn tthhee ddiissccuussssiioonnss..

223322

PPeennaallttyy ffoorr nnoonn--ccoommpplliiaannccee wwiitthh SSeeccttiioonnss 222255--223311 FFoorr nnoonn--ccoommpplliiaannccee ooff SSeeccttiioonnss 222255--223311,, tthhee ccoommppaannyy,, aanndd eevveerryy ooffffiicceerr ooff tthhee ccoommppaannyy wwhhoo iiss iinn ddeeffaauulltt,, wwiillll bbee lliiaabbllee ttoo tthhee ffiinnee wwhhiicchh mmaayy eexxtteenndd uupp ttoo RRss..55,,000000//--..

223333

PPeennaallttyy ffoorr nnoonn--ccoommpplliiaannccee bbyy tthhee aauuddiittoorr wwiitthh SSeeccttiioonn 222277 aanndd 222299 AAnn aauuddiittoorr mmaayy bbee ppeennaalliisseedd aatt tthhee eexxtteenntt ooff RRss..1100,,000000//-- ffoorr nnoonn--ccoommpplliiaannccee ooff tthhee SSeeccttiioonnss 222277 aanndd 222299..

223333AA

((11)) && ((22)) ((33)) ((44)) ((55)) ((66))

PPoowweerrss ooff CCeennttrraall GGoovvtt.. ttoo ddiirreecctt ssppeecciiaall aauuddiitt iinn cceerrttaaiinn ccaasseess TThhee aauuddiitt mmaayy bbee ccoonndduucctteedd bbyy tthhee ccoommppaannyy’’ss aauuddiittoorr oorr bbyy aannyy CC..AA,, wwhhoo mmaayy oorr mmaayy nnoott bbee

eennggaaggeedd iinn pprraaccttiissiinngg.. AAuuddiittoorr ssoo aappppooiinntteedd iiss ccoonnffeerrrreedd wwiitthh aallll tthhoossee ppoowweerrss aass mmeennttiioonneedd uu//ss 222277,, eexxcceepptt hhee hhaavvee

ttoo rreeppoorrtt ttoo tthhee CCeennttrraall GGoovveerrnnmmeenntt iinnsstteeaadd ooff tthhee mmeemmbbeerrss ooff tthhee ccoommppaannyy.. SSppeecciiaall aauuddiittoorr’’ss rreeppoorrtt mmuusstt iinncclluuddee aallll tthhee mmaatttteerr tthhaatt iiss ccoonnttaaiinneedd iinn tthhee nnoorrmmaall aauuddiitt rreeppoorrtt &&

aallssoo tthhee ssttaatteemmeenntt oonn aannyy mmaatttteerrss aass rreeqquuiirreedd bbyy tthhee ggoovveerrnnmmeenntt.. AAuuddiittoorr wwiillll bbee ppeennaalliisseedd ffoorr RRss..550000//-- ffoorr nnoonn--ccoommpplliiaannccee ooff tthhee oorrddeerr tthhaatt iiss iissssuueedd bbyy tthhee

cceennttrraall ggoovveerrnnmmeenntt.. AAllll tthhee eexxppeennsseess ffoorr ccoonndduuccttiinngg ssuucchh ssppeecciiaall aauuddiitt aalloonngg wwiitthh tthhee aauuddiittoorr’’ss rreemmuunneerraattiioonn sshhoouulldd

bbee ppaaiidd bbyy tthhee ccoommppaannyy aanndd iiff tthhee ccoommppaannyy ffaaiillss ttoo mmaakkee ssuucchh ppaayymmeenntt tthheenn ssuucchh aammoouunntt ccaann bbee rreeccoovveerreedd ffrroomm tthhee ccoommppaannyy aass aarrrreeaarrss ooff llaanndd rreevveennuuee..

223333BB

((11)) ((22)) ((44))

AAuuddiitt ooff CCoosstt AAccccoouunnttss iinn cceerrttaaiinn ccaasseess AAnn aauuddiittoorr iiss eexxppeecctteedd ttoo ccoonndduucctt tthhee aauuddiitt iinn mmaannnneerr aass mmaayy bbee ssppeecciiffiieedd iinn tthhee oorrddeerr iissssuueedd bbyy

tthhee CCeennttrraall GGoovveerrnnmmeenntt.. CCoosstt aauuddiittoorr sshhaallll bbee aappppooiinntteedd bbyy tthhee BBooaarrdd ooff DDiirreeccttoorrss wwiitthh tthhee pprriioorr aapppprroovvaall ooff tthhee CCeennttrraall

GGoovveerrnnmmeenntt.. TThhee ccoosstt aauuddiittoorr mmuusstt ffoorrwwaarrdd hhiiss rreeppoorrtt ttoo tthhee CCeennttrraall GGoovveerrnnmmeenntt aanndd tthhee rreessppeeccttiivvee ccoommppaannyy

wwiitthhiinn 112200 ddaayyss ooff ccoommpplleettiioonn ooff hhiiss aauuddiitt.. 661177

AAppppooiinnttmmeenntt ooff aann aauuddiittoorr bbyy ‘‘CCoommppttrroolllleerr aanndd AAuuddiittoorr GGeenneerraall ooff IInnddiiaa’’ ffoorr aannyy ggoovveerrnnmmeenntt ccoommppaannyy ddeeffiinneedd uu//ss 661199 aanndd ffoorr aallll tthhoossee ccoommppaanniieess ddeeffiinneedd uu//ss 661199BB..





CHAPTER-5B (COMPANY AUDIT-2)

SSEECCTTIIOONN PPRROOVVIISSIIOONN // CCOONNTTEENNTTSS

220099 ((11)) ((22))

((33))

((44))

((44AA))

((55))

((66))

((77))

MMAAIINNTTEENNAANNCCEE OOFF BBOOOOKKSS OOFF AACCCCOOUUNNTTSS BBYY TTHHEE CCOOMMPPAANNYY •• EEvveerryy ccoommppaannyy mmuusstt mmaaiinntteennaannccee pprrooppeerr BBooookkss ooff AAccccoouunnttss aatt iittss rreeggiisstteerreedd ooffffiiccee.. •• PPrrooppeerr bbooookkss ooff aaccccoouunnttss ooff bbrraanncchh ooffffiicceess sshhoouulldd aallssoo bbee mmaaiinnttaaiinneedd bbyy tthhee ccoommppaannyy &&

rreettuurrnnss ooff tthhoossee bbrraanncchh ooffffiicceess sshhoouulldd bbee ffoorrwwaarrddeedd ttoo tthhee hheeaadd ooffffiicceess aafftteerr ssuuiittaabbllee iinntteerrvvaallss wwhhiicchh sshhoouulldd nnoott eexxcceeeedd tthhrreeee mmoonntthhss..

•• FFoorr tthhee ppuurrppoossee ooff ssuubb--sseecc..((11)) && ((22)),, pprrooppeerr bbooookkss ooff aaccccoouunnttss sshhaallll nnoott bbee ddeeeemmeedd ttoo bbee kkeepptt iiff::

oo tthhee bbooookkss ddooeessnn’’tt eexxhhiibbiittss ttrruuee aanndd ffaaiirr vviieeww ooff tthhee ssttaattee ooff aaffffaaiirrss ooff tthhee ccoommppaannyy;; oo IIff ssuucchh bbooookkss aarree nnoott mmaaiinnttaaiinneedd oonn AAccccrruuaall BBaassiiss aanndd DDoouubbllee EEnnttrryy AAccccoouunnttiinngg

ssyysstteemm.. •• BBooookkss ooff AAccccoouunnttss aanndd ootthheerr ppaappeerrss sshhaallll bbee kkeepptt ooppeenn ffoorr iinnssppeeccttiioonn bbyy aannyy ddiirreeccttoorr aatt

bbuussiinneessss hhoouurrss.. •• BBooookkss ooff AAccccoouunnttss && aallll tthhee rreelleevvaanntt vvoouucchheerrss ffoorr pprreecceeddiinngg eeiigghhtt yyeeaarrss ffrroomm tthhee ccuurrrreenntt yyeeaarr

sshhoouulldd bbee kkeepptt ssaaffeellyy bbyy tthhee ccoommppaannyy iinn ggoooodd ccoonnddiittiioonn.. •• IIff tthhee ppeerrssoonn aass mmeennttiioonneedd iinn sseeccttiioonn 220099((66)) ffaaiillss ttoo ccoommppllyy wwiitthh tthhee aaffoorreemmeennttiioonneedd ssuubb

sseeccttiioonnss,, tthheenn hhee sshhaallll bbee ppuunniisshhaabbllee ffoorr eeaacchh ooffffeennccee wwiitthh iimmpprriissoonnmmeenntt ffoorr ssiixx mmoonntthhss aanndd ffiinnee wwhhiicchh mmaayy eexxtteenndd ttoo RRss..1100,,000000//-- oorr wwiitthh bbootthh..

((HHee mmaayy bbee rreelliieevveedd ffrroomm ssuucchh lliiaabbiilliittyy,, iiff oonn rreeaassoonnaabbllee ggrroouunnddss hhee pprroovveess tthhaatt aannyy ccoommppeetteenntt ppeerrssoonn wwaass aappppooiinntteedd ffoorr ssuucchh ccoommpplliiaanncceess))..

•• RReessppoonnssiibbiilliittyy ooff tthhee aaffoorreemmeennttiioonneedd ccoommpplliiaanncceess vveessttss wwiitthh:: oo AAllll tthhee ooffffiicceerrss && ootthheerr eemmppllooyyeeeess ooff tthhee ccoommppaannyy aalloonngg wwiitthh MMaannaaggiinngg DDiirreeccttoorr

oorr MMaannaaggeerr,, iiff tthhee ccoommppaannyy hhaass aa MMaannaaggiinngg DDiirreeccttoorr oorr MMaannaaggeerr.. oo EEvveerryy ddiirreeccttoorr ooff tthhee ccoommppaannyy,, iiff nnoo MMaannaaggiinngg DDiirreeccttoorr oorr mmaannaaggeerr..

•• IIff tthhee rreessppoonnssiibbiilliittyy ffoorr ccoommpplliiaannccee ooff lleeggaall rreeqquuiirreemmeennttss wwiitthh rreeggaarrddss ttoo tthhee bbooookkss ooff aaccccoouunnttss vveessttss wwiitthh aannyy ootthheerr ppeerrssoonn ootthheerr tthhaann aass mmeennttiioonneedd iinn sseeccttiioonn 220099((66)) aanndd iiff hhee ffaaiillss ttoo ccoommppllyy aallll lleeggaall rreeqquuiirreemmeennttss,, tthheenn hhee sshhaallll bbee ppeennaalliisseedd wwiitthh tthhee ffiinnee wwhhiicchh mmaayy eexxtteenndd ttoo RRss..1100,,000000//-- ffoorr eeaacchh ssuucchh ooffffeennccee..

220099AA

IINNSSPPEECCTTIIOONN OOFF TTHHEE CCOOMMPPAANNYY’’SS BBOOOOKKSS OOFF AACCCCOOUUNNTTSS •• CCoommppaannyy’’ss bbooookkss ooff aaccccoouunnttss,, ootthheerr bbooookkss aanndd ppaappeerrss sshhaallll bbee kkeepptt ooppeenn ffoorr iinnssppeeccttiioonn bbyy::

oo RReeggiissttrraarr;; oo aann ooffffiicceerr aauutthhoorriisseedd bbyy CCeennttrraall GGoovveerrnnmmeenntt;; aanndd oo AAnnyy ooffffiicceerr aauutthhoorriisseedd bbyy SSEEBBII..

•• ((NNoo pprriioorr nnoottiiccee oorr iinnttiimmaattiioonn iiss rreeqquuiirreedd ttoo bbee ggiivveenn bbyy ssuucchh aauutthhoorriittiieess ffoorr ssuucchh aann iinnssppeeccttiioonn)) •• IItt sshhaallll bbee tthhee dduuttyy ooff eevveerryy ddiirreeccttoorr,, ootthheerr ooffffiicceerr oorr aann eemmppllooyyeeee ooff tthhee ccoommppaannyy ttoo ffuurrnniisshh

aannyy ssttaatteemmeenntt,, eexxppllaannaattiioonnss,, iinnffoorrmmaattiioonn aanndd aassssiissttaannccee ttoo ssuucchh aann aauutthhoorriittyy wwhhiillee iinnssppeeccttiioonn,, aass rreeqquuiirreedd bbyy tthheemm..

•• TThhee ppeerrssoonn mmaakkiinngg iinnssppeeccttiioonn iiss aallssoo eemmppoowweerreedd ttoo mmaakkee ccooppiieess ooff bbooookkss ooff aaccccoouunnttss aanndd ootthheerr ppaappeerrss aanndd ppuutt aannyy mmaarrkk ooff iiddeennttiiffiiccaattiioonn oonn tthhee bbooookkss oorr ppaappeerrss..



221100 DDuuttyy ooff BBooaarrdd ttoo pprreesseenntt tthhee AAnnnnuuaall AAccccoouunnttss && BBaallaannccee SShheeeett aatt aann AAnnnnuuaall GGeenneerraall MMeeeettiinngg TThhee bbooaarrdd sshhoouulldd pprreesseenntt bbeeffoorree AAGGMM,, tthhee BBaallaannccee SShheeeett aanndd PPrrooffiitt && LLoossss AAccccoouunntt ffoorr tthhee ppeerriioodd ooff::

IInn ccaassee ooff ffiirrsstt AAGGMM,, ppeerriioodd bbeeggiinnnniinngg wwiitthh iinnccoorrppoorraattiioonn aanndd eennddiinngg wwiitthh tthhee pprreecceeddiinngg ddaayy ooff aann AAGGMM..

IInn ccaassee ooff ssuubbsseeqquueenntt AAGGMM,, ppeerriioodd ffrroomm tthhee bbeeggiinnnniinngg ooff tthhee ffiinnaanncciiaall yyeeaarr aanndd eennddiinngg wwiitthh tthhee pprreecceeddiinngg ddaayy ooff aann AAGGMM..

((AAnn AAGGMM sshhoouulldd bbee hheelldd wwiitthhiinn ssiixx mmoonntthhss ooff tthhee ccoommpplleettiioonn ooff ffiinnaanncciiaall yyeeaarr,, eexxtteennssiioonn ooff tthhrreeee mmoonntthhss ccaann bbee ttaakkeenn wwiitthh tthhee ppeerrmmiissssiioonn ooff tthhee rreeggiissttrraarr ooff ccoommppaanniieess.. DDiiffffeerreennccee bbeettwweeeenn ttoo ssuucccceessssiivvee AAGGMM sshhoouulldd nnoott eexxcceeeedd ffiifftteeeenn mmoonntthhss ((EEiigghhtteeeenn mmoonntthhss iinn ccaassee ooff aann eexxtteennssiioonn))..

221100AA

HHeeaadd

CCoonnssttiittuuttiioonn ooff ‘‘NNaattiioonnaall AAddvviissoorryy CCoommmmiitttteeee oonn AAccccoouunnttiinngg SSttaannddaarrddss’’ TThhee CCoommppaanniieess ((AAmmeennddmmeenntt)) AAcctt 11999999,, pprroovviiddeess cceennttrraall ggoovveerrnnmmeenntt tthhaatt iitt mmaayy ccoonnssttiittuuttee aa ‘‘NNaattiioonnaall AAddvviissoorryy CCoommmmiitttteeee oonn AAccccoouunnttiinngg SSttaannddaarrddss’’ bbyy iissssuuiinngg aa nnoottiiffiiccaattiioonn iinn aann ooffffiicciiaall ggaazzeettttee ttoo aaddvviissee tthhee cceennttrraall ggoovveerrnnmmeenntt oonn ffoorrmmuullaattiioonn aanndd llaayyiinngg ddoowwnn ooff aaccccoouunnttiinngg ssttaannddaarrddss ffoorr aaddooppttiioonn ooff ccoommppaanniieess oorr ccllaassss ooff ccoommppaanniieess uunnddeerr tthhee CCoommppaanniieess AAcctt,, 11995566 ((AA nnoottiiffiiccaattiioonn ffoorr ccoonnssttiittuuttiioonn ooff ‘‘NNaattiioonnaall AAddvviissoorryy CCoommmmiitttteeee oonn AAccccoouunnttiinngg SSttaannddaarrddss’’ wwaass iissssuueedd bbyy tthhee CCeennttrraall GGoovveerrnnmmeenntt iinn JJuullyy 22000011))..





How to Learn CARO:



About the Author: Hey friends, myself Yogesh Gupta, pursuing Chartered Accountancy

and company secretary Course. I’m not so much minded as some other

people; I just share my notes which help me in cracking my exams. I passed

senior secondary in 2008 in first division, after I passed Graduation Degree in

Business Administration (BBA) in June 2011.

There are some difficulties in my life that’s why I can’t do CA after

senior secondary. But ‘Jo bhi hota hai, ache ke liye hi hota hai, to mujhe is

baat ki koi tensions nahi hai’. In December, 2010 in passed CA-CPT & CS-

Foundation in first attempt, In November 2011; I gave both groups for CA-

IPCC, but only one group was cleared. So, I wrote papers in May 2012 for

Group-2, and cleared also second group. In December 2012, also clear the CS-

Executive in first sitting. Now, turn of crack inter stage of CS…hope for the

best.

I also feel happy in preparing notes for my friends & studymates. I’m

always working on my motto ‘sirf apne liye hi to sab jeete h…m different

so, kuch dusro ke liye b kru…!’ I’m also a student, and I’m always waiting for yours reviews. If you

have any complaint or suggestion about it, so please feel free to write me.

[email protected] http://fb.com/mr.yogeshgupta

http://fb.com/CAYogeshGuptaa http://yogeshguptarohtak.blogspot.com

audit finals wosa - · pdf filechapter-1 (nature of auditing) audit: independent examination...

Documents