Scope of SA 260: To Deals with auditor’s responsibility to communicate with TCWG in an audit of financial statements. Who are “Those Charged with Governance” (TCWG): The Person(s) or Organization(s) with responsibilities of for overseeing the strategic direction of the entity and obligations related to the accountability of the entity. This includes those overseeing the financial reporting process and for some entities, TCWG may include the management personnel like Board Member. Who are Management: The person(s) with executive responsibility for
Tag: Audit
Audit trail Feature in Accounting Software
DEFINITION Audit trail is combination of two words where: Audit refers to examination of records Trail refers to series of clues that are left behind An audit trail is, essentially, proof of all the changes made to your financial data In general it is the history of a particular document since its creation PURPOSE Audit is a vast task depending on the financial statement there are some inherent limitation of audit that an auditor is not expected to mitigate
GST Return Audit & Assessment: What to Expect
Introduction Goods and Services Tax (GST) has transformed the Indian taxation system, bringing about a unified and transparent approach. However, with the implementation of GST comes the responsibility of complying with its intricate filing procedures. GST Return Audit and assessment is a crucial aspect that businesses must navigate to ensure compliance and avoid legal complications. In this blog, we will delve into the key elements of GST Return Audit and assessment, shedding light on what businesses can expect during this
Cost Records and Cost Audit Applicability
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 misreportings with regard to applicability. Recently many show cause notices were also issued to companies who had not prepared the cost records or had not filed the cost audit report though apparently as per the data gathered by MCA through various sources Cost Audit seemed to be applicable on those companies. Section
STANDARD ON QUALITY CONTROL (SQC-1)
Introduction: The purpose of this Standard on Quality Control (SQC) is to establish standards and provide guidance regarding a firm’s responsibilities for its system of quality control for audits and reviews of historical financial information, and for other assurance and related services engagements. This SQC is to be read in conjunction with the requirements of the Chartered Accountants Act, 1949, the Code of Ethics and other relevant pronouncements of the Institute1 (hereinafter referred to as “the Code”). The firm should
Statutory Audit Alert – March 2023
Implementation & Guidance on Audit Trail A. Management’s Responsibility Proviso to Rule 3(1) of the Companies (Accounts) Rules, 20141 (hereinafter referred as “the Account Rules”) states that for the financial year commencing on or after the 1st day of April 2023, every company which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made
Internal Audit Alert – March 2023
Robotic Process Automation (RPA) Introduction: In today’s world increase in population has caused increase in demand of almost everything. To keep up with the increase in demand industries and organisations push their employees to do more and more work. Due to increase in competitors in every field organisations are trying to find way to increase their rate of work along with efficiency and quality. This has caused various organisationss to turn toward automation. Automation can do daily repetitive task without
Statutory Audit – February 2023
Amendment in CSR rules Sec. 135(1) was amended pursuant to Companies Amendment Act, 2017 with effect from 19th September 2018. Post this amendment, the criteria of net worth of Rs. 500 crores OR turnover of Rs. 1000 crores OR net profit of Rs. 5 crores for applicability of CSR provisions was limited only to the extent of immediately preceding financial year. However, Rule 3(2) which, before this amendment, was the guiding provision as to the number of years for which
Internal Audit – February 2023
Internal Audit in Digital Era In a world of rapid change on almost every front, where organisations must adapt and grow – or risk decline and eventual demise – everyone confronts the same reality: either step up to contribute long-term value or be left behind. As the risks and complexities organizations face change, so do the focus, skill sets and capabilities needed by internal audit. Internal audit in the digital era involves using advanced technologies to enhance the effectiveness and
Statutory Audit – January 2023
RoDTEP Scheme RoDTEP stands for Remission of Duties and Taxes on Export Products. It is a new scheme that is applicable with effect from January 1st, 2021, formed to replace the existing MEIS (Merchandise Exports from India Scheme). The scheme will ensure that the exporters receive the refunds on the embedded taxes and duties previously non-recoverable. The scheme was brought about with the intention to boost exports which were relatively poor in volume previously. The following were some of the export