How was the AUDIT today??

Page no : 5

VUELVE (CA- Student) (351 Points)
Replied 06 May 2010

My true or false is like this :

F, F, T, F, T, F, F, T, T, F

and i don't know whether it is correct or not...!!

Q 2(a) Auditor disqualified

Q2(b) CARO is applicable

Q2(c) Responsibility of mgmt. for outstanding expenses and for closing stock auditor responsibility.

this is what i wrote please let me know correct answers...!!

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ARUSHI (student) (34 Points)
Replied 06 May 2010

Originally posted by : Shrinaath Paravasthu

Section says "a person who is indebted to the company for an amount exceeding one thousand rupees, or who, has given any guarantee or provided any security in connection with the indebtedness of any third person to the company for an amount exceeding one thousand rupees;"
But does not say time . but he is appointed for 1.4.8-31.3.9 in which time he was indebted >1000.
though auditor term is only from an AGM to next AGM but period ends on 31.3.9 .
he does not begin the audit period from appointment date nor does it upto next agm .appointment is only for FY only
so he is disqualified

no he is qualified.. refer paduka time s given dir on da day f appointment he shndnt b indebtd... go thru scanner also same q has been askd in nov 02 o smthng ::)!

CA Punit GoSwaMi (Chartered Accountant) (310 Points)
Replied 06 May 2010

i think whoever attempted more then 80% marks with proper section mentioning in some answers will surely get atleast 40 marks...as per past trends i'm saying this.......

Shrinaath Paravasthu (Articles) (62 Points)
Replied 06 May 2010

except c where i did not give he is responsible.

I justified by saying may be got expert opinion or management representation and quoted kingston cotton mill case where judge said "auditors are entitled to believe the tried and trusted people of management provided there was no suspicion"

Nawaz (CA Final) (195 Points)
Replied 06 May 2010

Originally posted by : Ragav Manian
	answer is he is qualified to be an auditor because he has cleared his debt before his appointment ` 226(3) a person who is indebted to a company for an amount exceeding 1000 is not qualified.

The auditor is Appointed to do audit of financial statement of the year( 2008 - 2009). He is indebted to the company for more than rs. 1000 till the date 10.8.2008. which is covered in the period for which he is doing the audit (2008 - 2009). so i consider it as an disquallification .

I imagined the fact that the management may have just made the book entry for the repayment of debt. so as to exclude the auditor from such disqualification and after that appoint the auditor.

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himani khatri (student) (29 Points)
Replied 06 May 2010

paper was horrible.........

ARUSHI (student) (34 Points)
Replied 06 May 2010

Originally posted by : Aravind

for that 8 mark questions there are two parts.

1. the company can contend that auditors are responsible owing to the materiality of the items involved.

2. the auditor can prove he is not guilty by reasons that are mentions in sa-230 audit documentation, by showing his sincerity and that the mistakes are buried and cannot be found in normal course of the audit.

1 mor point whch i wrot other thn yu mentnd

as thy declared dividend how does it matterwho is responsible... thr obligation to pay dividend hv a bindin....... etc etc :p

himani khatri (student) (29 Points)
Replied 06 May 2010

paper was horrible.........

ViveK (.) (312 Points)
Replied 06 May 2010

Originally posted by : Divya
	how ll de auditor be respo for overvaln of comp stock...wht justificctn did u guys give..?

i give justification according to

SA 501 audit evidence- additional consideration for special items

the auditor should obtain MR if he can not be present while physical verification

Shrinaath Paravasthu (Articles) (62 Points)
Replied 06 May 2010

what q no in may 2002 i,m not getting it

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ARUSHI (student) (34 Points)
Replied 06 May 2010

Originally posted by : nawaz

Originally posted by : Ragav Manian

answer is he is qualified to be an auditor because he has cleared his debt before his appointment

` 226(3) a person who is indebted to a company for an amount exceeding 1000 is not qualified.

The auditor is Appointed to do audit of financial statement of the year( 2008 - 2009). He is indebted to the company for more than rs. 1000 till the date 10.8.2008. which is covered in the period for which he is doing the audit (2008 - 2009). so i consider it as an disquallification .

I imagined the fact that the management may have just made the book entry for the repayment of debt. so as to exclude the auditor from such disqualification and after that appoint the auditor.