About: Reverse charge is a mechanism under which the recipient of the goods or services is liable to pay the tax, instead of the provider of the goods and services. According to the normal taxation system, the supplier collects the tax from the buyer and deposits the same on adjusting the output tax liability...
Continue readingHUF & Benefits
Introduction The Hindu Undivided Family (HUF) is a distinct form of Business organization peculiar to India. Hindu Undivided Family (HUF) is created by the operation of law. Hindu Undivided Family (HUF) does not have any separate legal entity from that of its members. The laws that govern HUFs are not codified and are read...
Continue readingTypes of audits conducted by the Comptroller and Auditor General of India
Financial audit An audit is primarily conducted to express an audit opinion on a set of financial statements so as to enhance the degree of confidence of intended users. Audit opinion expressed as to whether the financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework or whether...
Continue readingProhibition on acceptance of a foreign contribution
Certain persons and organizations prohibited from accepting foreign contribution No foreign contributions shall be accepted by any of the following: Candidate for election. Correspondent, columnist, cartoonist, editor, owner, printer, or publisher of a registered newspaper. Judge, government servant, or employees of any corporation or any other body controlled or owned by the government. Where...
Continue readingPowers of SEBI
Securities and Exchange Board of India (SEBI) is the regulatory body of the security and commodity market which is owned by the Government of India. SEBI has powers respect to same which are mentioned below: Regulating the business in the stock exchange and any other securities market. Registering and regulating the working of stockbroker,...
Continue readingConcurrent Audit in Bank
Meaning: It is an examination which is conducted within a few time with the occurrence of transactions. It tries to shorten the time gap between a transaction and its examination by an independent person who is not involved in its documentation. There is an emphasis in favor of deep checking in key areas rather...
Continue readingINFORMATION SYSTEM AUDIT OR INFORMATION TECHNOLOGY AUDIT (IS AUDIT)
Information System (IS) audit is a systematic process of objectively obtaining and evaluating evidence/ information regarding the proper implementation, operation, and control of information and the Information System resources. Information Technology (IT) in banks and financial institutions, has facilitated greater systemic efficiency in the banking and financial sector. It has introduced new areas of...
Continue readingPeer Review Board
What is the Peer Review? It means a review of work done by a professional, buy another professional of similar standing. It is a regular mechanism for monitoring the performance of professionals for maintaining the quality of service expected of them for enhancing the reliance placed by the users of financial statements for economic...
Continue readingRole of KYC in banking
The objective is to prevent fraud at entry-level. It enables the Bank to understand the customers and their financial dealings to manage their risks prudently. The KYC policy includes: Customer acceptance policy. Customer Identification procedures. Monitoring of Transactions and Risk Management. Among them, important are Customer Identification and monitoring the Transactions. Customer Identification means...
Continue readingConcept of forensic accounting and audit
Forensic means suitable for use in a court of law which gives confidence and sound professional judgment and it is to that standard and potential outcome that forensic accountants generally have to work. It provides detailed oriented workings. Forensic accounting can be described as it is a specialized field of accountancy that investigates fraud,...
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