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 »
AIS AIS stands for Accounting Information System. It is a method utilized by organizations to gather, preserve, analyze, and communicate financial and accounting information. 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,… 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 »
Statutory Audit and Tax Audit Tax audit and Statutory audit are two distinct types of audits conducted for different purposes. Statutory audit Statutory audit aims to verify a company’s financial statements to ensure they present a true and fair view of its financial position. It is a legal requirement under the Companies Act, 2013,… 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,There are several types of accounting standards, including: 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.… Read More »
Section 40B Section 40B of the Income Tax Act pertains to the deduction of remuneration paid to partners from the taxable income of a partnership firm. This provision outlines the guidelines and regulations regarding the treatment of partner’s remuneration for tax purposes. As per this section, the payment of interest, salary, bonus, commission, or… 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 »
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 »