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Audits & Assurance

This category contains 14 posts

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” given to Corporates vide Companies (Accounting Standards) Amendment Rules, 2009 [G.S.R. 225 (E) dtd. 31-Mar-09] issued by Ministry of Corporate Affairs. Herewith attached is the ASB Guidance in the form of FAQs to illustrate and to assist in [...]

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 [...]

ICAI proposal may hit audit firms here

Indian audit firms, that informally work as the audit arms of big foreign accounting firms, may soon have to sever their foreign affiliations, if accounting and auditing rule maker ICAI has its way. In what could be a fall-out of the Satyam account fabrication episode, the Institute of Chartered Accountants of India (ICAI) has started [...]

Creative accounting helps cos cover up forex losses

Companies are getting creative in using the Company Act and Accounting Standards to avoid the impact of foreign currency loan on their profit & loss statement owing to currency fluctuations. Companies with foreign currency borrowings have now adopted various accounting tactics to ensure that their quarterly performance remains intact in the event of losses arising [...]