Income tax demand a contingent liability Yes, the interest on income tax demand is a contingent liability because it is a potential obligation that arises from an event that has already occurred, which is the assessment of additional income tax. However, the final amount of interest payable may depend on various factors, such as the… Read More »
The system includes hardware, software, and procedures that are designed to support the accounting function of an organization. It typically includes modules for accounts payable, accounts receivable, general ledger, inventory management, payroll, and financial reporting. The system helps to ensure the accuracy and completeness of financial data, improves decision-making, and provides better control over financial… Read More »
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 »
Introduction Audits play a crucial role in ensuring transparency, accuracy, and compliance in financial reporting. Businesses and organizations undergo different types of audits to verify their financial records. Among the most common are statutory audits and tax audits. Though both serve regulatory purposes, they have distinct objectives, applicability, and legal requirements. This article explores… Read More »
Contingent Liabilities Contingent liabilities can verify by reviewing the company’s financial statements and related disclosures. Companies are required to disclose significant that liabilities in their financial statements, along with a description of the nature of the liability and the likelihood of it being realized. The notes to the financial statements may also include information about… 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 preparation Tax audit preparation Website Link Tax audit preparation: Preparing for a tax audit can be a daunting task, but with the right approach, you can make the process smoother and reduce your chances of encountering any issues. Ensuring precise record-keeping is vital when getting ready for a tax audit. It is… Read More »
User Intent People searching for “What is an external audit?” likely want to understand its meaning, process, importance, and how it differs from an internal audit. This article provides a structured and detailed guide to external audits, covering its applications, benefits, limitations, and a comparative analysis. Introduction In today’s fast-paced business world, financial transg, process,… Read More »
User Intent: Users searching for “Features of Auditing” aim to understand its key characteristics, applications, benefits, and limitations. This article provides a detailed and structured guide, ensuring clarity for students, professionals, and business owners. Introduction Auditing is a crucial function in business and finance, ensuring accuracy, compliance, and reliability of financial records. Whether… Read More »