Interesting Audit Update

As per SA we have to perform risk based audit that means where there is more risk then more audit efforts, we don’t treat all areas equally while selecting audit procedures.

Many researches has identified that revenue recognition is very sensitive area and it is prone to misstatement.

Hence when #SA240 was drafted, it is specifically mentioned in Para 26 that PRESUME that there will be risks (Not high risk just risks) in revenue recognition, so automatically we pay more attention to revenue recognition checking.

But this presumption is rebuttable that means if we have reason to justify no risk, then we can ignore this presumption and go for simple / limited audit procedures and we have to document reasons.

For example if company get revenue from single leasehold property and there is long term agreement for many years then there is no risk in revenue recognition of rent.

CA Ravi Taori

(0)

We are taking initiative to bring CA Firms & Students closer to reach other. So that firms get good articles and students can get suitable firms.

CA Firms can fill up small form about contact details, location and expected work in this link

https://goo.gl/9OPVKg

above form can be filled up by partners, employees and existing articles or any known person of firm.

CA Students can fill up their contact details and location in the given so that we can send list of firms with area of work expected during article-ship.

https://goo.gl/jkYOVT

So help each other for betterment of article-ship

CA Ravi Taori

(0)

Call Back Request