• The turnover of Mr. Aarav, engaged in wholesale trading business, for
    the P.Y.2020-21 is ` 2 crore and the gross receipts of Mr. Vishal,
    engaged in legal profession is ` 50 lakhs. Mr. Aarav has been regularly
    following mercantile system of accounting and Mr. Vishal regularly
    follows cash basis of accounting. Out of the turnover of Mr.…Read More

  • Statement 1: The establishment of the overall audit strategy and the
    detailed audit plan are not necessarily discrete or sequential process but
    are closely inter-related.

    Statement 2: The auditor shall establish an overall audit strategy that
    guides the development of audit plan.

    (a) only Statement 1 is correct

    (b) Only Statement 2…Read More

    1 Comment
  • (IESBA Code) related to an audit of financial statements establishes
    which of the following as the fundamental principle of professional ethics
    relevant to the auditor when conducting an audit of financial
    statements:

    (a) professional judgement;

    (b) professional skepticism;

    (c) professional intelligence;

    (d) Professional…Read More

    3 Comments
  • KDS Agro Pvt. Ltd., a newly incorporated company has not mentioned
    the names of first Directors of the company in its Articles of Association.
    Referring the provisions of the Companies Act, 2013, who shall be
    deemed to be the first Directors of the company?

    (a) The members of the company shall be deemed to be the first
    Directors of the…Read More

    1 Comment
  • Namita Ceramic Goods Limited having 152 members was incorporated
    with the main objects to manufacture ceramic goods, glazed, unglazed
    floor and wall tiles, etc. and to carry on trading in such products. After
    three years of successful operation, it wants to diversify its business by
    entering into the field of manufacturing electronic…Read More

    3 Comments
  • Miss. Raksha is engaged in providing private coaching services in Noida, Uttar Pradesh and is not
    registered under GST till 25-Sep-2020. Her aggregate turnover is ` 19,00,000/- on 30-Sep-2020. She got
    GST registration on 30-Sep-2020. Which of the following options are available to her?

    (a) She can pay tax @ 18%, charge it from customer and…Read More

  • AS PER CLAUSE (XV) OF PARAGRAPH 3 OF THE CARO, 2016, THE AUDITOR IS REQUIRED TO REPORT ON:

    a) Whether the title deeds of immovable properties are held in the name of the company. If not,
    provide the details thereof.

    b) Whether the company has entered into any non-cash transactions with directors or persons connected with him

    c) Whether…Read More

  • M/s Ram Raj & Associates have been appointed as statutory auditors of
    Venus Ltd. for the FY 2019-20. During the year, the company has
    entered into some related party transactions. CA Ram, the engagement
    partner has taken a management representation letter regarding the
    proper accounting, presentation and disclosure of such related party…Read More

  • The Board of Directors of Very Well Ltd. wants to contribute ` 60,000 to
    a charitable organization during the financial year 2017-2018. During
    the financial year 2015-2016, the company suffered losses. The
    Directors are contemplating to contribute the said amount inspite of the
    losses. In this connection, state whether the Board of…Read More

  • Innovative Tech Sol Limited intends to invite subscription to ` 1.10
    crores equity shares of ` 10 each on private placement basis. The
    persons identified as potential subscribers are within the statutory limit
    and also include the two other categories to which such statutory limit
    is not applicable. One such category is employees of the…Read More

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