Advanced Auditing, Assurance and Professional Ethics - May 2018

(a) Toddle Limited had definite plan of its business being closed withina 5x4 short period from the close of the accounting year ended on 31% =20 March, 2017. The Financial Statements for the year ended 31/03/2017. * had been prepared on the same basis as it had been in earlier periods with an additional note that the business of the Company shall cease in near future and the assets-shall be disposed off in accordance with a plan of disposal as…

(a) Asan Auditor give your comments for the following disclosures made 5x4 by a Company which adopted IndAS—for compilation of Financial =20 Statements : (i) In the Balance Sheet, the sub-head inventories contained an item “goods in transit” in which a consolidated amount aggregating the cost of raw materials in transit and loose tools billed on company but delivery not made to company had been specified. (3) FKJS Marks (ii) Provision for doubtful debts of trade debtors was grouped in…

H Co. Ltd, isa holding company with two subsidiaries R Co. Ltd., 5x4 and S$ Co. Ltd. The H Co. Ltd., adopts straight line method of 720 depreciation for its assets whereas S Co. Ltd., follows written down value or diminishing value method. Though R Co. Ltd., follows straight line method of depreciation, it does not give effect to component accounting of depreciation in respect of high value assets. While consolidating the financials of the R Co. Ltd.. and S…

B, a Chartered Accountant in practice was invited to deliver a 4x5 seminar on GST which was attended by professionals as well as by =20 representatives of various Industries. One section of audience raised a particular issue unique to the industry to which it pertains. Mr. B enthusiastically explained the issue and elaborated how he actually solved this, for his client facing the same issue with worked out examples from the computer storage device using the actual data of one…

6. (a) Explain how a Forensic Audit differs from an Assurance Engagement. 4x5 =20 (b) Tee & Co., a firm of Chartered Accountants had been appointed by C & AG to conduct statutory audit of M/s Rare Airlines Limited, a Public Sector Company. They would like to check certain mandatory propriety points as required under section143(1) of the Companies Act, 2013. List the areas of check to meet these requirements. ~(c) Moon Ltd. of which you are the Statutory Auditor…