Day: December 24, 2021

Travelling expenses are normally payable to staff according to rules approved by directors or partners. Where no rules exist, the auditor should recommend that these be framed for controlling the expenditure. In the absence of T.A. Rules, the expenditure should Read More …

The audit procedures for custom duties are listed below: Examine Cash Book: Examine the payment of custom duties in the cash book with reference to bill of entry.  Examine the Bill of Entry: ¾ Check the amount of custom duty Read More …

Payment on account of income-tax and other taxes consequent upon a regular assessment should be verified by reference to the copy of the assessment order, assessment form, notice of demand and the receipted challan. Payments or advance payments of income-tax Read More …

Normally, every item of expenditure has to be written off in the year in which it is incurred. But, considering the requirement of AS 10 and AS 26, the expenses relating to tangible and intangible assets can be capitalized if Read More …

Considering the requirement of AS 19, “Lease”, which classify transaction into  finance lease or  operating lease. In case of operating lease, lease payment should be recognised as an expense in the Statement of Profit and Loss on a straight-line basis Read More …

Where a movable asset, such as motor car or machinery has been acquired on a hire-purchase basis, it should preferably be adjusted in accounts at its cash value by raising a liability for the amount payable to the financing company Read More …

1. Under sub-section (1A) of section 227 Clause (e) requires personal expenses charged to the revenue account of a company should be reported. 2. Under section 293, the Board of Directors of a public company or of a private company Read More …

The purchase of an asset must be duly supported by the receipt for the amount paid. In case of an immovable property the auditor must also inspect the title deeds. The title of an immovable property passes only on registration. Read More …

The following points must be considered while vouching the directors’ remuneration in case of a public company and private company which is a subsidiary of a public company –  Examine the Entitlement: The directors are not automatically entitled to remuneration. Read More …

A director of a company or his relative, a firm in which a director or his relative is a partner or a private company of which the Director is a member, cannot enter into any contract with the company for Read More …