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Audits & Assurance

This category contains 16 posts

COVID-19 will change how companies report earnings – 20 point checklist for CFOs

[Source: www.businessinsider.com] The COVID-19 pandemic has had an adverse impact on all aspects of the economy, be it earnings, supply chains, operational efficiencies and the stock markets. Since the financial year ends on March 31, 2020 in India, it falls amidst the COVID-19 pandemic. This will have an impact on the way companies report their […]

ICAI Advisory on “Impact of Coronavirus on Financial Reporting and the Auditors Consideration”

Apart from the health and safety of mankind, COVID-19 has unfavourably affected the economic environment which in turn has consequential impact on the results in the financial statements and reporting. There is also a need to advise the preparers of financial statements to ensure that the potential impact of COVID-19 is suitably considered in preparing […]

SEBI audit flags discrepancies at warehouses

Mumbai: A Securities and Exchange Board of India (Sebi) audit of warehouses accredited by commodity exchanges has found discrepancies in both the quantity and quality of stock they hold, said two people familiar with the matter. Current Sebi norms allow commodity exchanges to outsource warehousing of stocks to third-party warehouse service providers that are accredited […]

India may make the Calendar Year, instead of April-March, as its new Financial Year from as early as 2018

India may make the Calendar Year, instead of April-March, as its new Financial Year from as early as 2018

Auditors in China: US unable to force auditor regulation

It’s difficult to come together when the parties in a dispute are not looking at the disagreement in the same way. Two of the most important concepts in Chinese culture are guanxi and mianzi. Guanxi is defined as sharing favors between individuals, connections, relationships, and the ability to exert influence. Mianzi means face: saving face, […]

‘Unless you act on audit reports, don’t blame the auditor’

The Institute of Chartered Accountants of India (ICAI),  with over 1,50,000 members and 6,00,000 students, is one of the largest accounting bodies in the world. Mandated to regulate the profession of chartered accountants (CAs), the ICAI has been in the news since the auditors of ill-famed Satyam Computers failed to detect the lengthy accounting fraud […]

FAQ on AS 11 by MCA

Relaxations were given in Accounting Standard 11 (AS-11) on “The Effects of Changes in Foreign Exchange Rates

Accounting norm changes help major companies boost earnings

Benefit of option to capitalise/amortise differences in forex rates. Walking stick Profits of Tata Motors, M&M and Sterlite Industries would have been lower but for the amendment JSW Steel, Bharat Forge and Ashok Leyland may have slipped into losses in FY-09 if the new option had not been exercised Relaxations in AS 11, the Accounting […]

The right medicine?

The present crisis of confidence in the audit profession among users and stakeholders, arising from recent market events has to be addressed in a fair manner. The profession, regulators and all concerned have to determine – what is the right medicine? A professional issue requires a professional response. Thus, the fundamental point is that the […]

Scope of an audit is different from that of an investigation

Investigators, regulators and stakeholders of fraud-hit Satyam Computer Services attribute auditor’s failure in detecting the fraud to either negligence, incompetence or blatant connivance with the promoters who cooked books for years. Ideally, auditors, who accept hefty fee, should ensure that they independently verify all documents they rely on before certifying the financial statements of a […]