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Who audits summarised FS

Auditing

answered on 05-Jan-25 23:18

If in the current year, there has been a change in the auditor and the entity requires audit of summarized FS of PY. So who will audit in such a case

latest answer

In cases where the auditor has changed, it is the predecessor auditor who is expected to audit and report on the summary financial statements derived from the prior year’s audited financial statements, as they have the direct knowledge and responsibility for the original audit. In case he is unable or not not willing to do, them newly appointed auditor can. But he will not be In a proper position to do the audit justifying his responsibility.

Manu Jacob

Manu Jacob

CA Final

6K+

1

259

EXEMPTION UNDER SEC 54 for residential house property

Direct Taxation

answered on 06-Jan-25 19:22

An assessee has sold a house for 110 lakh rupees. This property was purchased at 1998 so the indexation benefit applies for this sale. Computing indexation as on 01-04-2001, indexed cost of acquisition comes to 65 lakh rupees 110-65=45 has to be reinvested within timeline to avoid taxation. This reinvestment has to be house property only as per IT act. Say the assessee purchases a piece of vacant residential land without a house on it for 50 lakh rupees before the filing due date. Can he claim the expemption as this purchase falls under residential category because a house come from the land only, being it a primary purchase. If not whats the further treatment of this case.

latest answer

Already answered.

lithish kumar

lithish kumar

CA Final

3K+

1

1K+

Doubt

AFM

answered on 04-Jan-25 11:18

Why is the mean taken as Expected NPV??

latest answer

Expected NPV

Punniya Ramesh

Punniya Ramesh

CA Final

0

1

258

Employee benefits

Accountancy

answered on 06-Jan-25 14:01

How multi employer plan is working instead of they give fund to outsiders they pool such funds together and giving benefits at time of employees retirement?

latest answer

They pool fund together and can have a single trust managing them. Say for e.g Tata Trust (hypothetical). manages PF of Tata Motors, Tata Consultancy, Tata Steel etc.

Dhivakar27

Dhivakar27

CA Inter

240

1

922

Portfolio Beta

AFM

answered on 04-Jan-25 10:00

Not understood the part where we multiplied the beta with cost and calculated Portfolio beta, i was doing the weight calculation based on mkt price and then calculating beta

latest answer

Here they gave data for periods T0 & T1 and are asking us evaluate performance for period T1 We have to compute Beta as time of investment (To) and then compare return (at point T1) based on beta at T0 If you compute Beta at period T1, how will you measure performance of the portfolio with market

Hrishikesh Pradhan

Hrishikesh Pradhan

CA Final

18K+

1

901

Incremental approach

Financial Management

answered on 03-Jan-25 22:38

Here in icai book while calculating incremental approach In Total cost included fixed cost But your are doing with out fixed cost is only variable cost

latest answer

Sorry sir I understand it

Mr M

Mr M

CA Final

3K+

1

819

Time limit for Rectification of incorrect details

Indirect Taxation

answered on 03-Jan-25 21:59

What is time limit for Rectification of mistakes in returns? In one video it is said as due date of filing return for September month or annual return which ever is earlier and another it is saying 30th of November or annual return. Which one is correct?

latest answer

30th November following the end of FY OR DATE of filing annual return whichever is earlier. Will check the video and close it

Sitaram Kollepara

Sitaram Kollepara

CA Inter

200

1

193

Indirect Method

Financial Reporting

answered on 03-Jan-25 19:55

Sir, In class it has been mentioned that we can consider Net profit after taxes also but need to add it back because we will not consider accrual tax but actual tax paid Is it referred to tax on Accounting profit? Please Clarify.

latest answer

Tax charges to P&L

Gunda Sharan

Gunda Sharan

CA Final

150

1

176

What happens if TCWG tells not to mention the OM/EOM/KAM para

Auditing

answered on 05-Jan-25 23:08

What happens if TCWG tells not to mention the OM/EOM/KAM para. Does the auditor not mention the paras or mention it somewhere else

latest answer

Auditor is required to only communicate such inclusions in the auditors report. He is not taking their consent or undermining his integrity and independence . So he will include the matter

Manu Jacob

Manu Jacob

CA Final

6K+

2

892

Operating activities

Financial Reporting

answered on 06-Jan-25 13:59

Sir, Which method does IND AS Suggests to follow whether Direct or Indirect? Because in class it has been said as Indirect but in ICAI Study material it says Direct Please clarify.

latest answer

Direct is encouraged. But in real life we use indirect.

Gunda Sharan

Gunda Sharan

CA Final

150

1

187