CRITICAL AUDIT AREAS:
CRITICAL AUDIT AREAS:
1. TAXATION:
· Reason for Identification:
In making the estimate of income taxes currently payable by the company, the management consider the current income tax law and the decision of appellate authorities on certain issues.
· Management Responses:
Management intent that case will go in favor of company and company does not want pay any amount.
· Proposed Audit Approach:
Deeply analysis all the cases and through understanding paper and decision.
2. DEFINED BENEFIT PLAN:
· Reason for identification:
Critical actual assumptions have been adopted as disclosed in the financial statement for actuarial valuation of Defined Benefit Plan. Changes in the assumption in future years may affect the liability under this scheme in those years.
· Management Response:
Noted for future transaction and recording of liability.
· Proposed Audit Approach:
Analyze actuarial valuation report.
3. STOCK IN TRADE:
· Reason Of Identification:
Stock in trade is carried out at lower of cost and NRV (Net Residual Value) which include selling price + knowledge of recent comparable transaction.
· Management Response:
Management has ensured that they will give full disclosure of all Material facts.
· Proposed Audit Approach:
We have vouches the stock in trade, obtain physical verification and calculate the cost of stock at lower of cost and NRV.
Click the Link Below to Download the File in MS-Word
1. TAXATION:
· Reason for Identification:
In making the estimate of income taxes currently payable by the company, the management consider the current income tax law and the decision of appellate authorities on certain issues.
· Management Responses:
Management intent that case will go in favor of company and company does not want pay any amount.
· Proposed Audit Approach:
Deeply analysis all the cases and through understanding paper and decision.
2. DEFINED BENEFIT PLAN:
· Reason for identification:
Critical actual assumptions have been adopted as disclosed in the financial statement for actuarial valuation of Defined Benefit Plan. Changes in the assumption in future years may affect the liability under this scheme in those years.
· Management Response:
Noted for future transaction and recording of liability.
· Proposed Audit Approach:
Analyze actuarial valuation report.
3. STOCK IN TRADE:
· Reason Of Identification:
Stock in trade is carried out at lower of cost and NRV (Net Residual Value) which include selling price + knowledge of recent comparable transaction.
· Management Response:
Management has ensured that they will give full disclosure of all Material facts.
· Proposed Audit Approach:
We have vouches the stock in trade, obtain physical verification and calculate the cost of stock at lower of cost and NRV.
Click the Link Below to Download the File in MS-Word
