Advanced Auditing, Assurance and Professional Ethics - May 2019 MTP

One of your team members has recently qualified as a chartered accountant and joined your team to audit a portfolio of audit clients who are private companies. One of the clients Surrey Pvt. Ltd. is a hotel in the small town near Jaipur. The revenue generated for the current year ended is Rs.10.5 crores and the entity is not a holding or subsidiary of any public company. The owner of the business Mr. Hazelwood runs this family business from last…

Prakash Limited has around 25 branch offices and all the branch offices were on company’s own land and building. Company has the Policy that all the original title deeds for land and building owned by the company will be kept in the custody of authorised official at company’s head office and a certified copy of the same is kept with the respective branch for verification. You have been appointed as the internal auditor for the branches of the company and…

High Limited is a public limited company engaged in the manufacturing of watches. The company has appointed CA. Eshaan as statutory auditor of the company for the year 2018-19. On verification of the composition of Board of Directors of the company, the auditor observed that during the reporting period in one of the board meeting the chairman was non-executive director and less than one-third of the Board comprised of Independent Directors. The auditor wants to examine the effect of changes…

Following are the registered persons under GST Act, 2017. Which one of the registered person is required to get his accounts audited and also furnish a copy of audited annual accounts and a reconciliation statement, duly certified in FORM GSTR –9C? (a) Mr. A is an advocate whose turnover for the financial year ended 31 March 2018 was Rs.1.25 crores. (b) Mr. B is a labour contractor managing construction services and his turnover for 31 March 2018 was Rs.3.95 crores.…

As an auditor appointed under section 44AB of the Income Tax Act, 1961, under which c lause of Form 3CD, you will report for amounts deemed to be profits and gains under section 32AC, 33AB or 33ABA or 33AC (a) clause 24 (b) clause 40 (c) clauses 31 (d) clause 23

General Insurance Ltd. agreed to insure a large commercial client. Due to the size of this client's operations, there is the potential that it could suffer a substantial loss. It would be financially difficult for Bajaj Allianz to pay the entire claim itself. To spread this risk, Bajaj Allianz contacted Bharti AXA General Insurance to request that it cover a portion of the risk. Bharti AXA General Insurance agreed, but only on the condition that it receive a portion of…

An audit firm is the subject of the Peer review, please indicate the maximum number of years in the review cycle: (a) 1 year (b) 2 years (c) 3 years (d) 5 years