Audit

The existing provisions of the Companies Act, 1956 (hereinafter referred to as the Act) contemplate two situations, viz; (a) where the company has only one auditor; and (b) where it has more than one auditor. Full Article

In past about a decade, if one gives a close look at the business environment, professional experience with clients and employer expectations, one could derive that the period has witnessed a theory of ‘Big change’. The drivers at macro level are altering the business environment radically and as a result transforming the accounting profession. Full Article

A US court has dismissed civil claims filed against former independent directors of Satyam Computer in a lawsuit over a one billion dollar accounting fraud. Hearing the petition, the US District Court Judge Barbara Jones of New York said there were insufficient allegations against the former independent directors and members of Satyam Computer’s audit committee. Full Article

The recent global financial crises, intense regulatory requirements, extensive competitive pressures, voluminous data, have created a challenging environment for financial institutions to operate, make effective decisions, manage risk, thereby affecting financial reporting and regulatory compliance. Full Article

It has been observed that there is a multiplicity of overlapping audits in the Public Sector Banks (PSBs). While the audit is essential for the health of the PSBs, it has been observed that multiple overlapping audits throughout the year engage a lot of attention, resources and time of the PSBs. It has also been observed that there is a need to revamp the audit system in PSBs in the wake of increasing computerization and shifting of operations on I.T. based system. The p.. Full Article

The Foreign Account Tax Compliance Act (FATCA) forms section 501(a) of the broader Hiring Incentives to Restore Employment Act, one of several pieces of legislation designed to boost the economic output of the U.S. following the global financial crisis. FATCA was signed into U.S. law in March 2010, and comes into effect in January 2013. Full Article

Organisational response to the environment and the role of the acco- unting profession for the environ- mental protection are fairly recent developments. Environmental issues are business issues and have consid- erable implications for 'audit' in all its semblance leading to a separate spe- cialised area viz., 'environmental auditing'. Full Article

In very broad terms, audit risk is the risk of a material misstatement of a financial statement item that is or should be included in the audited financial statements of an entity. In this regard, a financial statement item includes any related notes to the financial statements. Full Article

Statutory Auditor’s Reporting Responsibilities in Respect of Depositing of Cess Pursuant to Clause 4(ix)(a) of the Companies (Auditor’s Report) Order, 2003and Section 227(3)(g) of the Companies Act, 1956. The Council of the Institute has decided to modify the auditor’s reporting responsibilities in respect of the cess payable by a company under section 441A of the Companies Act, 1956. Pursuant to this decision, paragraph 63(g) of the Statement on Companies (Audito.. Full Article

In this article an attempt has been made to make a analysis of provisions under different laws relating to Related Party Transactions. An awareness of various provisions is very much required so as to take adequate care while entering into related party transaction and disclosing the same in the Financial Statements. Full Article