SA-200 Basic Principles Governing An Audit

SA-200 Basic Principles Governing An Audit

Integrity,

Objectivity &

Independence

a) Auditor should be straightforward, honest and sincere in his professional work.

b) He should be fair and must not be biased.

c) He should maintain impartiality. He should be free of any interest.

Confidentiality

a) He should maintain confidentiality of information acquired during his work.

b) He should not disclose any such information to a third party without specific permission of client or legal or professional duty to disclose.

Skill &

Competence

a) He should perform work with due professional care.

b) Audit should be performed by persons having adequate training, experience and competence. 

Work Performed

by Others

a) The auditor can delegate work to assistants or use work performed by other auditors and experts.

b) But he will continue to be responsible for his opinion on financial information.

c) The Auditor is entitled to rely on work performed by others, 

• He exercises adequate skills and care and
• There is nothing to doubt

Documentation

a) He should document matters relating to the audit (maintain working papers).

b) Working papers are maintained to demonstrate that the audit was carried out in accordance with the basic principles.

Planning

a) He should plan his work to conduct audit in effective and timely manner.

b) Plans should be based on knowledge of the client’s business.

c) Plans should be further developed and revised during audit if circumstances require so.

Audit Evidence

a) Auditor should obtain sufficient and appropriate audit evidence by performing compliance and substantive procedures.

b) Evidences enable the auditor to draw reasonable conclusion.

c) Compliance procedures mean the ests designed to obtain reasonable assurance that internal controls have been properly designed & operating effectively throughout the year.

d) Substantive Procedures are performed to obtain evidence as to the completeness, accuracy and validity of data produced by the accounting system.

Accounting System

& Internal Control

a) Internal control system ensures that the accounting system is adequate and that all the accounting information has been duly recorded.

b) The auditor should understand the accounting system and related internal controls adopted by the management.

c) He should study and evaluate internal controls system to determine the nature, timing and extent of other audit procedures.

Audit Conclusions

& Reporting

a) The auditor should review and assess the conclusions drawn from the audit evidences obtained through performance of procedures.

b) The audit report should contain clear written expression of opinion on the financial statements.

c) His report is on whether:

• The financial information has been prepared using acceptable accounting policies which have been consistently applied;
• The financial information complies with relevant regulation and statutory requirements; and
• There is adequate disclosure of all material matters.

d) The report should be as per legal requirement. When other than  clean opinion is given, the audit report should state the reasons thereof.

Characteristics of Business Environment

Business environment exhibits many characteristics.

1] Environment is complex

2] Environment is dynamic

3] Environment is multi-faceted

4] Environment has a far reaching impact

Quick Tax Calculators

• For Calculate Tax (India):

http://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx

• For Yearly Income Tax Calculator:

Very Simple and Useful - Income Tax Calculator for Financial Year 2014-15

Click to download file :https://drive.google.com/file/d/0B41ZBasQMRnTeU1xQkVhWGF5azA/edit?usp=sharing

Open Link and press Ctrl+S to save file.

• Income & Tax Calculator:

http://law.incometaxindia.gov.in/DIT/Xtras/income_taxcalc.aspx

Why trademark registration is so important for your 

business??? 

Imagine for a moment that you have developed a new design and worked for years to make that design a popular brand and then someone has copied or steals your ideas to make it his own design.

Protecting your design or business name through trademark registration should be the first step and is the best way to get legal shell to your brand. By having a patent of your design, you are getting a license from government to own the rights of that particular design as a manufacture, user or distributor. 

Your company is known to public by its name. If you have chosen a name which is distinctive and creates a good impression of your business then go ahead and file for a trademark registration. Imagine if someone else use your name which you have innovated with your ideas and over the years created good impression to make future profit out of it.

Registration of your trademark is important for so many other reasons. In this article we have listed most important reasons for which trademark registration is so important;

• If you have designed a product and that gets popularity then your ownership on the design will protect you and no one can use it to compete with you.

• Trademark Registration gives you the exclusive rights on your business name, logo and design.

• You can build your goodwill over the years and use it in other profit making businesses.

• Trademark registration gives you legal recognition for your products that you manufacture. It also gives you legal rights in franchise business.

• Trademark registration creates a legal ownership.

• Owner of a registered trademark have a legal right to stop anyone else from using it.

Companies like TATA, Google, Yahoo, Microsoft, Apple and many others have registered their business name. If you think any of your design or name require trademark registration then go ahead and do it now to protect yourself from the sharks in the market.

Please find below the main highlights of the budget released by the Maharashtra Assembly for the year 2014-2015

1. P. Tax threshold limit increased from 5000.00 to 7500.00

2. Threshold limit for VAT audit increased from 60.00 lacs to 1.00 cr.

3. Turnover limit for Compulsory Registration of VAT increased from5.00 lacs to 10.00 lacs

4. The penalty for late filing of MVAT return reduced from Rs.5000.00 to Rs.2000.00 for upto 1 month

5. Tax on cotton reduced from 5.00 % to 2.00%

6. Sugarcane tax exempted for 2013-2014

7. Retailers have the option to pay 1% of turnover or 1.5% of the taxable turnover instead of VAT

8. Reduction in luxury tax for new hotels in B & C category Zones. Threshold limit for Luxury Tax also changed, so effectively Hotel Tariff may come down a bit...!