Statutory and non-Statutory Audit Statutory audit and non-statutory audit are two types of audits that serve different purposes. A statutory audits is a legally required audit that is performed to ensure that a company’s financial statements are accurate and comply with applicable accounting standards and laws. This type of audit is typically conduct by an… Read More »
Types of Accounting standard Types of Accounting standard, 1.International Financial Reporting Standards (IFRS): These are a set of accounting standards developed and maintained by the International Accounting Standards Board (IASB). They are use by companies in more than 140 countries, including India, to prepare their financial statements. 2. Generally Accepted Accounting Principles (GAAP): These are… Read More »
Section 40B The conditions are as follows: 1.The payment of remuneration should be authorize by the partnership deed or agreement. 2. The remuneration provided should be reasonable in relation to the profits generated by the firm. It should be specifically directed towards a working partner 3. who actively participates in the firm’s business… Read More »
Tax Audit Tax audit is a process mandatory by the Indian Income Tax Act, 1961, designed to verify the accuracy of an individual or business’s financial records and tax returns. It is an examination of income and tax deductions to ensure that taxpayers comply with applicable tax laws. The tax audit serves as a… Read More »
An External Audit An external audit, also referred to as an independent audit or statutory audit, involves an impartial auditor examining a company’s financial statements and accounting records. The main objective of this audit is to provide assurance to the stakeholders of the company, including shareholders, creditors, and investors. It verifies that the financial statements… Read More »
Auditing features Auditing features, The features of auditing encompass the following aspects: Independence: Auditing should maintain independence to guarantee an unbiased and impartial audit process, unaffected by external pressures or biases. Systematic Approach: Auditing should be conduct systematically and methodically, covering all relevant aspects of the audited entity to ensure comprehensive evaluation. Objectivity and Impartiality: Auditors… Read More »
The definition of a turnover in tax audit In the context of a tax audit, turnover represents the complete income generated by a business through its operations within a specific financial year. Turnover is an important factor in determining the tax liability of a business, as it used to calculate various taxes such as income… Read More »
Difference between a cost audit and an internal audit Cost audit and internal audit are two different types of audits that serve different purposes. Cost audit is a type of audit that focuses on verifying the cost accounting records of a company to ensure compliance with cost accounting standards and other regulatory requirements. The main… Read More »
