foreign foreign foreign foreign 100 so first I will go with the company audit chapter Services first I will start the basic Sunday then after we will start with the vatma company only so just uh okay 30 minutes come shall we start the basics my first so just uh normally I want to know the definition of auditor I want to know what my definition of foreign audit is an independent independent examination of financial information of any entity whether profit oriented or not whether it is a profit oriented or not irrespective of its size or legal form irrespective of Atma its size or legal form nestama irrespective of its size or legal form when such examination when such examination is conducted with a view to with a view to express an opinion therea and then so here a definition definitely we need to highlight the vatma some keywords first of all independent examination is one keyword next one my financial information next one any entity next one opinion is another keyword so if keyword saying it is definition so first keyword I want to as a study down ma what is that first keyword ma independent independent examination or not what is that independent examination so I will take one company as an example ma can you tell me company Sr management hours or nothing but board of directors normally who can prepare the books of accounts of the company management and the management and the board of directors so they can prepare the vatma books of accounts they can prepare the vatma books of accounts so normally who are the owners of the company shareholder my shareholders answer is no yes no what is that my answer is no why what is the reason if I am purchasing the one share in the Reliance reliance so what is the section will prevent Monday section 128 of companies act 2013 section accounts under dividend and a chapter section 128 in chapters shareholders inspectors I am only investing in that company but they are restricting to inspect the books so that's why companies act 2013 another section introduces section 139 of companies Act 2013. what is the section ma section 139 of companies act 2013 so this is a right to the dhuma shareholders this isn't given as a right to the dhuma shareholders they can appoint the Huma auditor they can appoint auditors in order to in order to check what my books of accounts in order to check what my books of accounts so you put definitely ancientious independent examination checking verification is foreign foreign decision of one person Sr what is Atma decision of one person shall not be subordinate to the subordinate to the vicious or directions of wishes or directions of any other person answer and a decision of one person means now point of you know he is an auditarma decision of one person and every auditor auditor shall not be in subordinate shall not be subordinate is no subordinate under integers independent person he needs to conduct that auditing and whatma his own decision making foreign so what do you mean by the financial information is a second keyword we need to discuss so can you tell me financial information statements definitely you will get the vatma financial information nothing but Orchards bills Sr Etc financial statements so bills Journal Ledger trial balance and other books financial statements act 2013 basis cash flow statements in s1ma nodes to accounts vocabula if that is an ndis applicable like the intoma statement of changes in equity statement of changes in equity so these are the only that Charles in the only financial statements that's why we need to examine the financial information of Uma any entity so any entity and the equal definition are the profit oriented or not a profit oriented irrespective of its size whether it is a big company or small company these are all the things are Irrelevant for us so next legal form whether it is a company or partnership from sole proprietor local Authority Cooperative Society ajp by irrespective of its size or legal form profit oriented or non-profit oriented these are all the things are Irrelevant for us so we need to conduct that audit that's enough conducted exam such examination means vatma independent examination is conducted with a view to express what my opinion so can you tell me next keyword I will start about the what my opinion so next chapter is so that is only called as what my audit report 700. what is the 700 series [Applause] modified opinion is modified opinions so qualified Antarctica and then changes except the cash balance all the things are correct and Rasam reported qualified adverse and then it is a complete negative financial statements next one disclaimer foreign expression of what my no opinion that is only called as what my disclaimer so completing a positive and Dynamo unmodified modified under some type of negative extreme negative by the adverse just negative either qualified understood disclaimer so ultimately you are an independent examination conduction so you need to give the report on that company financial information you need to express an opinion on what now company financial information opinion expression is a financial information financial information are you clear as of Norma so this is only the just an introduction to the Doddy definition sir so ultimately auditor objective anti surrender he needs to express an opinion on the financial statement so nothing but opinion Express stadium is an ultimate objective so okay next uh foreign foreign as an auditor foreign audit this audit is called as what Mass statutory audit so under equal to the auditor definitely audit conductor so audit conduction setup a Provisions companies act 2013 Provisions as well as auditor also needs to satisfy so companies are 2013 but audit related Provisions so companies act 2013 auditory related that Provisions only we will discuss in this chapter sir the first of all I want to know that all the sections in an order section Clarity each and every section so first this chapter will be started with the section 139 sir already introduction appointment of auditor foreign foreign special notice so a special note is concept third one section 141 sir section 141 eligibility eligibility comma qualifications under disqualifications of an auditor disqualified section 142 is nothing but our remuneration to that auditor remuneration to the bhuma auditor section 143 is nothing but powers and duties of an auditor powers and the duties of Huma auditor next system section 140 forma prohibited services prohibited services next seventh one month section 145 duty to sign on duty to sign on audit report duty to sign on what my audit report section 146 a right to attend a a g m right to attend what my a g m I think annual general meeting section 147 ma punishment for contravention punishment for what my contravention finance 147 section 148 is in cost auditor so that is also very very important for our example audit is other than sir that is section 177 audit committee chapter audit committee clearance so you put one by one sections discuss essay chapter over so first of all name and answer and appointment first discussion first who can be qualified to be a point yeah 141 section 141 directly we will start from our materials so please open the material patma section 141 Acres section 141 is nothing but eligibility qualification and disqualifications of Uma auditor so qualifications after the qualification of CA you have the two vesma you can go to the vatma job and you can get into the vatma practice foreign foreign auditor then audit formula appointment majority of Partners must be practicing in India so I will tell you example Ma so in that audit form 10 partners are there ten partners yes [Applause] eligible because the majority of Partners practicing in India as an individual can I go further to audit on the yes okay qualifications disqualifications or qualifications disqualification disqualifications attractive are all automatically qualified individually content having a certificate of practice every time it is qualifications so body corporate other than LLP body Corporation disqualified company sir 10 or 20 Chartered Accountants so can I call the company body corporate subscribe company and shareholders always daylight top forms in India um companies are disqualified next time shall we start our discussion next officer or employee of the company officer or employee of the company so just took a point answer ABC limited is there is ABC limited is there in this ABC limited Mr e x is in foreign foreign foreign disqualified employee of the company Independence [Applause] that person's also Atma disqualified next summer second tournament s [Applause] foreign and it forms x y z limited again they want to become as an auditor Mr a vocabula securities foreign [Applause] foreign foreign holding company disqualified relatives next summer example yes if an auditor Sr is entered into any business relationship with the clerk so Nano auditor Reliance related disqualified so lesser Reliance jio Sim purchase a Samsung business relationships [Applause] that is relationship these two are not considered as Fatma business relationship rasnara foreign [Applause] foreign next thing sir I am in debited to that company up to how much my file s but in case disqualified foreign [Applause] foreign certificate of practice so nothing but he is a given that guarantee understood money so a guarantee amounts only fifty thousand each other if an R reader is given the guarantee towards the company up to one lakh one lack access is disqualified yes [Applause] second Point disqualifications if you are holding the Securities disqualified relatives and the whole change one lakh phase one next five lakhs in excess of five lakhs disqualified if that auditor having business relationship with the companies that is also disqualified professional relationship as well as um the services are not called as what my business relationship last one was guarantee in excess of one lakh only disqualified up to one lakh that's okay clear in the work foreign of that persons suppose my wife isn't acting as a director in one company a company definitely issues so that's why Father and Son brother and sisters report is not at all possible that's why we are disqualified that person in an if any person acting as a full-time employment elsewhere practices if any person that means auditor having the full-time employment elsewhere okay foreign foreign [Applause] employment elsewhere that person is disqualified for the company audits next summer so after qualifications ninety percent of students will say the job practice engine 20. if I am holding the certificate of practice qualification and certificate of practice disqualified foreign foreign [Applause] company foreign Capital more than what month more than 100 crores are limitations Limited foreign 40. first certificate of practice 10 into 20. 200. one person company don't mind the company small company private company less than 100 crores public Capital One is foreign criminals are broadcast no auditor is convicted by the court on the period of 10 years not elapsody and is a date of conviction only Sr 10 years from the date of conviction on the nesqualified 10 years 10 years you can appoint that person as an auditor but a period of elapsed 10 years foreign disqualified if you are providing this type of services you are disqualified for an appointment of an auditor for that company so shall we start that immediately what do you mean by the 144 service asthma foreign Management Services no Sonic Independence if you are doing that Management Services next one rendering outsourced Financial Services foreign [Applause] foreign [Applause] then you are disqualified to be appointed as in what month is section 144 services [Applause] clear you are disqualified so can you repeat that what are the eight points ma Management consultancy Services rendering Outsourcing Financial Services as a design and implementation of financial information system internal audit investment banking services investment advisory Services accounting and bookkeeping services any other kind of services as may be prescribed e144 services so as of now we are done with the two Provisions what is that part disqualification second one what 144 so disqualifications completed directly if any person is qualified to be appointed as an auditor that person needs to be appointed as per what my section 139 139. shall we start the directly what my appointment of auditor foreign foreign government company second one is what the non-government company Essa so what is my point surrender Auditors are classified into also two types one first auditor as well as subsequent auditor first auditor as well as vatma sub sequent auditor then we will proceed into this topic sir then we will proceed into what month sorry Incorporation data Forma incorporation so other data are such commencement of business production sir is commencement of business companies foreign foreign foreign [Applause] [Applause] we need to be appointed as an auditor that auditor is only known as watma first order incorporation one year or nine months or 15 months after that incorporation within 30 days if any person is an appointed as an auditor in the stadium or subsequent Asian then auditor is called as subsequent auditor is first order first [Applause] Auditor in case of non-government companies board of directors [Applause] [Applause] [Applause] within 90 days from the commencement of business 90 days next summer first auditory is subsequent auditor yeah holding period of an audit for stages five years yes sorry 100 years foreign [Applause] on the pouch in case c o m comptroller auditor general of India within some days from the incorporation incorporation within 60 days [Applause] board of directors 30 days foreign [Applause] every gamma controller auditor general of India the board of directors candidates 60 days [Applause] of India Europe foreign foreign foreign [Applause] five minutes long ER auditor appointments that person is called as what subsequent auditor only casual vacancies foreign [Applause] disqualification insolvency partnership foreign foreign [Applause] resignation is a danger thing sir is a so shareholders Casual Vacancy due to resignation I take Casual Vacancy due to what my resignation but within three months within 30 days definitely we need to convert the what my annual general meeting shareholders approval must be taken with regarding the department appointment within 30 days Ma government company resignations foreign [Applause] auditor but what is my doubt here surrender so there is a close association between the client and auditor companies foreign [Applause] is applicable if that company is borrowings [Applause] concept is applicable 50. 50 private company traditional ideas you cannot be appointed as an auditor for the how many years two terms of five years two terms of five years five years five years pooling period for the partnership firm or individual is on all base how many asthma five years same for the partnership individual sir rotation manner of rotation and a five years are two terms of five years NES AR but these are the companies only needs to appoint that auditors rotational basis clear next stigma audit an appointment yesterday you need to revise it just at least one or two times foreign number 36 section 177 in Japanese names aggregate outstanding loans our borrowings our debentures or deposits exceeding what my 50 crores so there is no second option sir you need to remember these limits unlisted private companies are equal or more borrowings 50. foreign committee if that company having that vatma are the committing yes recommendations foreign Samsung ABC Market okay board of directors [Applause] I am disagreeing with the recommendations why I am disagreeing also I will mention the water reasons foreign [Applause] foreign they need to mention the reasons recommendations but you need to mention the reason in your board report board of directors members next summer section 139 subsection 9 re-appointment of retiring auditor I already make the issue rotational Auditors concept applies you can reappoint the retiring Auditor in the Japan n number of years foreign [Applause] [Applause] reappointment of an existing auditor will be possible foreign clear [Applause] water foreign foreign foreign Ali and the second the central government approved sorry special resolution resolution central government permission special resolution in that annual general meeting how many days 30 days of the board resolution you need to submit to the central government central government permission within 60 days special resolution are you clear next one more removal resignation removal can be done by the company resignation can be done by the Uma auditor resignation can be done by the Huma auditor after the completion of an audit is after the completion of an audit or period is the removal is a different resignation is also what more different so auditor Angels within 30 days from the resignation as a resignation within 30 days low he needs to file a statement in the form of what my ad3 add two in the comma removal resignation appointment foreign foreign lower lower whichever is foreign auditor appointing the auditor other than what my retiring auditor Monday yeah new person as an auditor Maybe new person is [Applause] [Applause] not completed his term of office special notice for the passing the resolution in Asian appointing the another person as an auditor retiring order next summer completely but next time appoint another person and a new one is foreign [Music] foreign [Applause] [Applause] foreign [Applause] foreign only bottle 141 and removal resignation and giving up what my special notice so this is only the concept of Fatma special notice if any person is an appointed as an auditor in place of the redirecting auditor definitely the company will give the snow days to the dhuma auditor also auditor will send that make the representations in a reasonable length the company have a responsibility to circulate these are all the things to the members so if that is fails then redoches chances the first appointment is done next pays law rotational order is done next step is the manner and appointment of Auditors done 139 subsection nine what my reappointment is done removal is done resignation done appointing the any person other than the retiring auditor is done section 141 qualifications disqualifications and eligibility is also done next to the circle 144 done prohibited services what is the services remuneration so we need to receive the vatma remuneration so as per section 142 as per Varma section 142 auditor general meeting already that person is foreign foreign foreign foreign are you foreign branches so what are the rights month totally we have the sixth month so right of access to right to assess the books right to acquire that information right to receive the remuneration right to attend the general meeting right to sign on audit report write to visit the branches so next time surrendered totally is a reporting requirements auditor angels are definitely reported so what are the reporting requirements are and a we have the reporting requirements are classified into two times more first one normal reporting requirement what is Atma normal reporting requirement reportable sorry next Sunday audit reports in addition to the normal reporting we have the vatma some additional reporting requirement additional reporting requirements additional reporting requirements what are the additional reporting requirements or under some things I will mention Ma first one section 143 subsection One MA duty of an auditor to make inquiries duty to make vatma inquiries foreign duty to a report on what my fraud duty to report on what my fraud so in addition to the normal reporting additional reporting requirements for online is any Duty next time just only one matter and audit reporting is another chapter essay 700 audit reporting 143 1 as well as what month 143 12. so immediately Powers duties law first one is duty to make inquiries can you tell me section number section 143 subsection one additional reporting requirements six matters included in report foreign yesterday loan or advancement definitely loan or Advantage whether it isn't properly secured because the terms are prejudicial to that interest of the company so can you tell me presidential meaning against foreign next one alone so first loans and advances answer second one transactions are merely just a book entries not prejudicial to that interest of the company under transactions in terms of only book entries actually the transactions are not at all happened additional reporting requirement under Section 143 subsection one so transactions are merely book entries or not prejudicial to the interest of the company security suppose if you are selling for the 80 rupees or something fishy so if any Securities are sold Sr assets are selling price is less than its cost definitely you learn the transactions as an auditor but this provision is not applicable for that which companies surrender investment companies banking companies investment companies and banking companies can design a regular purchase they are definitely selling for the less than what it's cost less than its cost in this situation definitely what is that Mark we need to give that a report under Section 143 subsection one next one next one so loans and advances made by the company are showing it as what Mark deposit in that loans and advances loans and advances that's why this is what my liability sir learnson advances this could definitely loan and advance foreign no next one if Shares are issued for the cash key shares issues definitely summary utilize it for the same purpose actually other than that business we need to give the report under what Mark 140 foreign because client also know that these things mark 143 is clear so examples are section 143 subsection one duty to make inquiries proprietary elements in cost or sorry company audit and the indices six matters duty to main query the sudden matters clear repeat yesterday transactions are mainly book entries if any sales or Securities are selling less than its cost personal expenditures are charged to revenue loans and advances liabilities next one shares issued for cash foreign so I think you know company expansion definitely they need to establish the vatma branches Branch one branch two so head office head office auditor name auditor or head office so one branch is in located in India another Branch located in USA yesterday foreign disqualifications disqualifications Securities business business relationships ceiling limits full-time employment conditions [Applause] one example so next point is audit report after the preparation of Branch audit report this Branch audit report will be forwarded to the Huma head office auditor head office is only we can call it as an apartment company audit report so as a company auditor nothing but head office auditor Branch auditor will prepare the separate report on the records of Branch examined by him that will be sended to the vatma auditor of the company who shall deal with this in his report such manner as may be considered reporting he can prepare the vatma main report clear ly questions of that country so what are the things we need to discuss in this additional reporting requirements law 143 one on them six matters what is duty to reporter fraud so frauds currency reporting requirements around a one by one sir shall we start foreign foreign foreign foreign [Applause] [Applause] Central group foreign [Applause] all right foreign foreign 25 subscribe sir board of directors central government within 15 days 15 days 15 days 45 days board of directors within 15 days 60 days Within 15 days fortified section 144 is also over section 144 is also over section 145 signing on audit report signing on what month or any other document of the company documentary okay certified stock statements Etc so next one qualification reservation and comments of financial transaction which have in adverse effect on the functioning of the company so so normally qualification observation comments on that Financial transactions or matters which may have created the adverse effect on the functioning of the company that mentioned in that audit reports foreign Sports observation and qualifications all the members related inspection one for 139 140 141 142 143 144 145 so 147 punishment for the water contravention so 146 emulator each and every shareholders foreign only foreign unknowingly no English so next time sir imprisonment English just imprisonment office ten thousand to one lakh or both directors section 147 next month students so next step s of accounts are financial information this audit is called as foreign cop [Applause] [Applause] holder um foreign process it is an audit process verifying the vatma cost of production of any article can you tell me cost of production and in term of variable cost fixed cost so variable cost level amount of nothing but what much utilization of material labor other items of the cost that is maintained by the vatma company and nothing but if any cost accounting records are verified by the cost auditor that is only called as what cost audit can you tell me examples of cost accounting requirement cost records so nothing but material labor overheads Etc so next time every company including it units and the branches they need to maintain the watermark cost records in The Firm cra-1 2 every manufacturing company either service that is in the form number CRA one a formula 32 modules which is foreign [Applause] companies only companies entities foreign petroleum petroleum aeronautical spare parts sugar defense related on medical equipment foreign foreign foreign 35 [Applause] [Applause] you need to remember the limits all products 50 single product 25 so non-regulated all products hundred single product 35. foreign what are the three rules or three cases revenue from the exports in foreign currency exceeds the 75 percentage of total revenue total revenue 100 asthma secondary if any company is applied or happened transaction in the what Mass special economic zone acts Heaven jurisdiction Center so special economic zone so akkada then you will get the exemption of water cost audit cost audit exemption capital consumption units consumption units so what do you mean by the capital consumptions Capital consumption units generating what power foreign if any company is operated in a special economic zone Capital consumption units generating water power Capital consumption even is generating what more power sorry anyhow exemptions individual turnover that is 100 25 sorry 50 25 and 135 cross answer then you need to appoint the cost auditor appointed average foreign foreign [Applause] foreign within 180 days from the commencement of Varma financially foreign 30 days whichever is foreign [Applause] foreign foreign foreign [Applause] board of directors because auditor is an appointed by the board of directors that's why report also transferred to Huma board of directors a combination within 30 days no central government foreign foreign [Applause] [Applause] foreign records see Arya 2 is nothing but what my appointment related intimation to Oma Central bomb CRA 3 is what my cost audit report every development board of directors board of directors researchers no regulatory non-regulatory conditions some exemptions Clara every Financial year within 180 days within 30 days of the board meeting [Applause] whichever is earlier definitely you need to make an intimation to Huma central government are you clear with this month so as of now the cost started provision is also over last one in Japan so company audit can be done by the ca cost audit can be done by the CMA security area already can be done by the Huma CS company secretary course every company non-regulated limits your number foreign capital foreign foreign [Applause] next slide sir limits foreign so that's end with the company auditor company audits so we are divided company only so company audit Club provisions 140 141 142 143 4 145 146 endless every auditor has a right to know take the vatma notices related to Asian so much he can skip next number 147 punishment for contravention knowingly unknowingly foreign foreign secondary audit is also done so yesterday definitely you will get the tensor so normal reporting requirement about additional reporting requirement a section sometimes 143 one that is duty to make inquiries 143 11 Caro 143 12 fraud 143 12. foreign foreign foreign foreign [Applause] [Applause] foreign how can an auditor is an appointed under section 139 companies act 2013 be removed from the office before expiry after under in certain office special resolution in a general meeting foreign foreign records and audit rules as an amended submission of cost audit report to the board of directors 180 days from the closure of the financial year rotation to the cost auditor applies are same next number remuneration to the cost auditor ever appointed n a nearly 15 to 20 marks content then random opinions foreign foreign related so it's a company discussions independent examination of financial information of any entity whether it is a profit oriented or not irrespective of its size or legal form when such examination is conducted with a view to expressing an opinion there are decision of one person shall not be subordinate to the wishes or directions of vatma any other person financial information under discuss say some books of accounts plus Fatma financial statements whether it is a profit oriented or not is a next one must size or legal form also irrespective such examination is conducted with a view to whatma expressing of and what my opinion there are expressing of an Atma opinion there are so are you clear mind just a definition I discusses ultimate objective is nothing but to express an opinion on the financial statement so primary objective of an audit is nothing but what my expression of an opinion so please underline that expression of an opinion opinion Expressions the financial statements are showing the true and Fairview Sunday and these are exactly if the financial statements there is no fraud there is no misstatements in that financial statements and Report evali secondary objective is also there what is the secondary objective related to the auditor surrender prevention and detection of Fraud and errors foreign foreign so an extent is currently just I will tell you responsibility responsibilities we can say it as an objectives and rather expression of what my opinion expression of an opinion on the financial statement second one detection of Varma frauds under are they management first and foremost responsibility is nothing but vatma preparation of financial statement preparation of Atma financial statement secondary objectives design under implementation of design and implementation of internal control system and the organizational within that organization rules around early regulations implementation responsibility management auditor have the two objectives that primary is an opinion Express it is secondary one more what is it not deduction of frauds and errors so management primary responsibility and is a preparation of financial statement management secondary responsibility design and implementation of what my internal control primary objective secondary objective sir audit report whether the financial statements are showing what more true unfair view so you put them on concept of true unfair view window concept of true unfavorable sir assets reflecting balance on the same are they reflecting balance name balance foreign disclose challenge next summer yes yes balance more next discloses the all the material items required to the part two of schedule 3 of balance sheet in accordance foreign good job next all the unusual exception or non-recurring item under Indies are extraordinary activities ordinary economy BCC hello students ordinary activity bccf Building Sales agency this is called my extraordinary activity all the extraordinary activities must have been disclosure separately Maryland exception sorry exceptional as well as extraordinary activities definitely that matter needs to be communicated to Huma shareholders yes a financial statements are showing true and Fairview otherwise financial statements are not showing the true unfavor and you need to give the vatma report so can you repeat that sorry exceptional items extraordinary activities non-recurring these are all the activities are already disclosed properly then we can say in all the cases we can say Verma true unfair view is there foreign what are the areas are covered under the audit what are the responsibilities of auditor what are the powers of an auditor these are all the things will be decided by the three things responsibilities regulation Institute of Chartered Accountants of India is a given this some pronouncements as well as guidance system we need to give the watermark scope next last one terms of Engagement and terms of what is that now terms of Engagement so normally meaning in descendant at the time of appointment of an auditor you need to as a draft what my engagement letter download terms and conditions are nothing but agreement between the client and auditor so terms of Engagement basis applicable land regulations applicable law under regulation what do you mean by the letter of Engagement how to draft the letter of Engagement all the things I will tell you terms of Engagement means nothing but what my agreement between the Huma auditor and decline agreement between the Verma auditor under flight clear next one month overall objectives of our leader what is the overall objectives of auditor overall objectives surrender to express an opinion on the financial statement and then our overall objective so ultimate objective of an auditor or Oddities what my expression of an opinion as per se 200 what they are the given month of foreign statement auditor having the following objectives another having the vatma following objective first second one expression of opinion whether the financial statements are prepared as per vatma applicable financial reporting framework so suppose company number foreign rules and regulations are used by management in order to prepare present in order to prepare and the presentation of financial statements sorry compan the accounting standards next generally accepted accounting principles generally accepted accounting principles next one are fundamental accounting assumptions and advice or going concern consistency accrual fundamental accounting assumptions sir evenly follow I.E definitely they need to prepare the vatma financial statements as well as the financial whether the financial statements are prepared as per applicable financial reporting framework Point injectors or financial statements I need to give what my opinion next summer suppose if you are an appointed as an auditor for the company 100 confirmative evidence no answer if you are unappointed as an auditor of the company yes sir absolute Assurance absolute assurance so absolute Assurance Sunday audit risk zero confirm evidence reasonable insurance low level three months time reflection then you will get what more reasonable Assurance audit risk but acceptably low levels absolute Assurance so that is we need to obtain that what type of an assurance reasonable assurance about whether the financial statements are what Ma free from Material misstatement misstatements under Indonesia either fraud or error misstatements if that misstatement is a it having the significant influence a thousand cashier is not decision making effects definitely that is definitely so what is that material Monday if any users of financial statement decision making is an affected that is only called as what material ID 700 700 overall objective Sunday can you tell me how many things Ma second one my expression of an opinion whether the financial statements are prepared as per what my applicable financial reporting framework Express an opinion or nothing but what my Express opinion through the form of what my audit report foreign summary auditor needs to review the client internal control system internal control systems internal control system is an implemented and designed by Huma management whether it is an implemented correctly or incorrectly that should be reviewed by the Uma auditor review of Atma internal control system accounting definition on the day it is a recording and summarizing of data in what my accounting regards next summer it is an obtain and evalued the audit evidence on statements as well as what my assertions then this position will be what my easy is ma appointment of auditor foreign and a detailed description of audit procedures detailed description of what my audit procedures audit procedures so first audit procedure is nothing but what Mark compliance procedure what is the procedure compliance procedure second one is nothing but what my substantive procedures for example substantive procedures third one is nothing but vatma risk assessment procedures I will discuss it after sometime procedure auditor needs to review the client internal control system procedure client accounting systems substantive procedures so risk assessment procedures auditor procedures what are the audit procedures we have in our syllabus surrender compliance procedure substantive procedure complaints means client internal control substantive procedures so here what is the important point we need to consider surrender audit plan and nothing but as audit procedures after that planning definitely audit procedures after that implementation of an audit procedures you will get the vatma audit evidence so this is audit evidence sufficient and appropriate audit evidence sufficiency means what Mark quantity appropriateness means what my quality and the quantities quality so if that evidence whether the client is prepared the financial statement as per applicable financial reporting framework and the financial statements are free from what material misstatement overall objectives audit procedures based on that evidence based on that evidence you can express what my opinion you can express what my opinion opinion Express conclusions which type of an opinion is last stage line just answer audit report so total auditor appointments how many stages is there Ma process of audit how many stages are there Ma six stages audit procedures what are that audit procedures we have a compliance substantive risk assessment procedure if you are following these audit procedures you will get what my audit evidence conclusions next we need to get audit report this isn't what my phases in what month foreign internal control system means what type of procedure complaints next second point you say review on summarizing the data in what my accounting requires so next is obtain and evaluate the evidence evidence means what my information information Evolution means what not drawing the conclusions what type of conclusions we can make foreign so I will take that example Ma so fixed asset and Japan sir balance sheet local fixed asset and Japan one pro under management one program shift in the end 20 points is closure indirectly management shareholders Communications yes representations given by the given by yorama management representations given by the management in order to in order to show Atma items of in order to show what my items of financial statements in order to show Atma items of positive balance these are the attractions or representation given by the management of Uma shareholder intangible assets these are the assertions are called as what my negative assertion evaluation existence presentation disclosure rights and obligations type of negative assertions are you clear answer is these are the set of rules and the regulations that was used by the management in order to prepare and present the financial statement is representations it makes the financial statement decisions assessions are verified by the auditor audit prepare the financial statement recognized accounting principles accounting preparations report celebrity financial statements financial statements and audit reports these are all the things will be shared to whom a shareholder next last one month then audit automatically will start it starts important phrase what is audit starts when accounting was for example of five or six marks difference many times foreign foreign members foreign [Music] that is a difference between the vatma audit and investigation difference between the vatma audit an investigation so normally basic differences it is an examination of accounts and Records is with a view to ascertain any fact for the some special purpose in order to express an opinion investigation is foreign what is that Ma terms of Engagement nothing but is what my investigation it is limited as regard the period or areas to be covered areas a period related investigations foreign s to be covered foreign statement whether the financial statements are showing true and Fairview antenna foreign foreign partner generally accepted accounting principles investigation [Applause] so what are the audit procedures compliance substantive and risk assessment procedures that is only called as Fatma investigations so ultimately definitely evidence means what my information conclusive it is conclusion to confirm evidence is definitely you will get the profits next time approaches a suspicious remove watch next city or it is every year we need to appoint the auditor we need to verify the financial statement he needs to express what an opinion so but the investigation is Central Bureau of Investigation investigation so just one case this is foreign investigation expressions foreign honesty honesty sincerity sincerity under straight forwardness surrender it is unbiased objectivity unbiased impartial attitude impartial attitude some are Independence what is that much decision of one person shall not be subordinate to the wishes or directions of Atma any other person decision of one person shall not be subordinate to the Earth wishes or directions of others ethical requirements of an auditor and Quran ethics one personal quality of an Integrity objectivity Independence next confidentiality confidentiality Amma that means you need to maintain the secrecy over the maintain what my secrecy over clients as a secrecy over client information secrecy over what my client information client information exceptional situation slow you can give that vatma exceptions foreign skill and the competence Mark what is Atma skill and the competence so can I call it as incompetence means what my capabilities are under definitely whether this work isn't capable to perform by the auditor or not it needs to review now there are 10 article assistants so you haven't capable to do what the medium-sized audit because whether these are already suitable for me whether in case what are the my skills and what are the my capabilities all the things needs to be reviewed by the auditor himself or herself foreign I'm using you need to take that expert's work for that valuation of buildings Etc this is only what my work done by the others usage so next one documentation every point we need to maintain in an yes or in chronological documented form so whatever working papers working papers each and every matters are appointment in a letter of Engagement and agreement next at the time of conducting the audit procedures complaints substantive water whatever risk assessment procedures these are all the things you need to record in vatma working papers nothing but okay these are the property of Uma auditor because these are all the things are maintained by the auditor so that's why these are the properties of Puma auditor so an extensions plan I think audit plan means what my detailed description of audit procedures detailed description of detailed the description of what my audit procedures sufficiency means quantity appropriateness means what my quality after the conclusion we need to express in the form of what my audit report so these are the ten sorry enema nine basic principles governing the audit Mark so one by one repeat chain number Integrity what do you mean by the Integrity honesty sincerity straight forwardness objectivity unbiasedness impartial attitude Independence decision of one person shall not be subordinated to the wishes or directions of Atma in any other person next time our confidentiality auditor needs to maintain the secrecy over the client information acquired during that what month audit work in exceptional cases you can disclose that client information what are the exceptional cases my law professional duty to do so and the next one with the help of what my client approval next skills under competence work performed by the Huma others so normally building valuation under charted engine is next all the things needs to be documented as per the documentation next one my planning audit e planning nothing but audit procedures audit procedures so you will get what my evidence can you tell me evidence accounting system under internal control accounting systems based on evidence conclusions based on the conclusion report so basic principles governing an audit just over two minutes show Answer settings sir can I call this significance means what my importance importance or benefits of benefits of an audit or vatma importance of audit or significance of auditor we need to write these only sorry but benefits any point of viewership from legal point of view from law point of view a benefit sometime internal control point of view of benefits from external Affairs point of view benefit centers legal foreign external sources is financial statements are audited so last year one lakh on the number so definitely yes coach a quick discovery of what my errors and frauds internally happened yesterday it will be acted as well we can give the what my suggestions uniformity in accounts sir [Applause] en balance balance is definitely or it will be useful next external point of view Outsiders point of view advantage foreign foreign effects external effect so next time three questions inherent limitations are each afternoon reminding twenty basic principles basic principles inherent limitations foreign [Applause] internal audit internal or within that organization internal control that is [Applause] whether the management decisions audit what is Atma management the performance whether the management is an operating effectively and efficiently so management performance structures today or management decisions that is our examination of what my income tax return s people Reliance to someone who understood foreign [Applause] [Applause] audit resolution foreign two reasons foreign [Applause] [Applause] inherent limitations next question in this chapter is inherent limitations of what my auditing what is limitation can you tell me what do you mean by the inherence foreign foreign audit conduction these are the limitations are always attached to that what my audit so what are the inherent limitations we will check one by one zero auditor always can obtain the reasonable Assurance only auditor cannot obtain the absolutely are they absolute Insurance limitation sir due to inherent limitation of an audit due to which Auditors are obtained always what my persuasive evidence rather than what my conclusion the first way is means what my convincing under it is a perfect 100 conclusive evidence reasonable Assurance absolutely evidence we are a human sir so zero percent error always other matters sir inherent limitations inherent limitations audit evidence this is you know sorry provision for bad and doubtfulness balance as an auditor definitely I have a doubt why you are creating only eight percent eight percent eight percent management system I am considered the eight percent only the reasonable accounting is liabilities foreign audit also that is only the first one nature of Fatma financial reporting the preparation of financial statements or accounts involves the judgments by the management can you tell me what do you mean by the Judgment Mark decision making foreign limitations so first inherent limitation is about my nature of financial reporting for example nature of financial reporting are you clear second one nature of audit procedures nature of audit procedures compliance procedure substantive procedures risk assessment procedures internal control accounting systems sorry audit procedures they cannot provide the vatma complete information foreign if I am having the detention to conduct that audit in a proper manner then books of account settings information definitely they are giving them avoidance so this is also about my one inherent limitation nature of financial reporting isn't one inherent limitation second inherent limitation is nature of audit procedures audit procedures cooperation is needed if they are not cooperated that is also one inherent limitation office limitation with respect to the time and the cost results so 31st March of financial year completed within maximum three months or two months no so it time lack lack of time we are going with about Mass sampling so nothing but what my limitation with respect to the time means normally some statutes are given the less time limits in order to complete the audit because of that the numbers so that is will be acted as inherent limitation that will be acted as inherent limitation second number examples no foreign sample checking next other matters other matters foreign related body transaction next events are condition effects that entities ability to continue as a going concern examples that isn't one event or conditions ability to continue as a going concern so Financial indicator insolvency position insolvency because of the dim solvency entities ability to continue foreign so next summer the government banned into position Outsiders that is also one indicated to the vatma going concern effect next time non-compliances with the loss and regulations continuous guy you are the non-compliant about law that may be environmental law companies law civil law or whatever it may be the laws are applicable for you you are non-compliant with all the loss and regulation definitely that is also treated as a vatma foreign limitation after the completion of effect Ray transgender J foreign so I put a um inherent limitations sir inherent limitations on auditing yes 200. so next term materiality so before going to this concept just I want to go with the vatma just not spot auditing Learners are understandable series esca 300 series esca 400 series 500 Esa 600 next one esca 700 series 200 210 220 2 30. 250 260 265 299 so next SCA 300 Bunch low we have an SCA 300 Esa 315 Esa 320 ESA 330. SCA 400 series flow SCA 402 sa 450 so SCA 500 series 520 530 540 550 560 570 580 sa 600 series 600 610 620 700 series low we have an SCA 700 yes a75 sca706 SCA 710 SCA 720 these are the standards in CMA intercept Ed foreign [Applause] foreign [Applause] foreign foreign General responsibilities answer General responsibility General responsibilities plan next time material misstatements foreign audit evidence audit evidence related using the work of what my others using the work of Atma others next 700 in the comma audit reporting audit reporting moderation is asthma mclaration definitely audit reports on auditing follower owner so directly we will start with the what Mark concept of materiality that is located in vedma SCA 320 first chapter first chapter okay what is that question materiality three stages can you reveal that what are the six stages Monday first one appointment of auditor knowledge of client business audit plan audit evidence conclusions performance next one report execution so plan executions report so planning performance stays reporting stage E3 stages foreign I will take the Reliance limited as an example as well as ABC limited just a small company ABC limited law okay 10 000 rupees transactions ten thousand rupees transactions not recorded in the books of a concert much fair so you couldn't surrender a ten thousand Dakota this is a misstatement yes definitely this is so intentionally just a fraud unintentionally here next time this is also about my misstatement sorry for name and answered ten thousands definitely insignificant item under foreign not a material item not a material item so here what is it my points aren't a simple textures materiality is in relative term it is an applicable to that situational basis foreign foreign foreign two thousand yes five thousand ten thousand ninety five thousand one lakh 2 lakh five lakhs 6 lakhs Sr sixty thousand and a three point five lakh four point five lakh two point five lakh under 8 lakhs 2 lakhs 1.8 lakhs 1.4 lakhs 1.8 lakhs 1.9 lakhs is a 900 rupees 800 rupees Villa transaction spoon is just example time under Sr constraints are entire population sample basis important user decision making games foreign reflection population remaining injections [Applause] four mistakes population so materials materiality means an important item important ten thousand ten thousand transactions and it may considered chassis sample based on the sample we need to under the audit procedures population materiality level isn't decision making of Uma hero auditor decision making of Uma Auditors Judgment of an auditor only he can decide what is that materiality level any stages three stages what are the three stages of planning performing what is prefixes we can revise foreign first two stages planning and Performing means what my first two stages shall we start our discussion materiality in two stages planning stage and performances reporting stages chudama yesterday 320 standard number is discussing about the vatma materiality sa 320 is a standard number is discussing about the vatma materiality name Royal my protocol materiality in planning and Performing of an audit it lays down the materiality isn't applied by the auditor in which stages map both the planning as well as what my performing statement three stages only three stages so two stages so we are using the datma concept of materiality when a transactions below that not needed for that audit above needed for the vatma audit foreign Ty of an item transaction examples decision making on this is what are the factors to be considered for the determining the vatma materiality level foreign [Applause] big business and the individual contents are NTT to NTT materiality level changes [Applause] individually you need to check it out every client having the separate materiality level of factors foreign it will differ next number aggregate so Patrick has expenditure 365 days into tangent yeah individually that may not be what my material but if you are compounding that all the things aggregate that is material that is only so materiality may be determined in Verma aggregate example total income from the investment of a mutual fund can be more material than looking it often each individual investment investment is individual to individual change individuals so next Amma legal consideration what is Atma legal consideration normal directors full-time directors are not much foreign [Applause] piano is all expenses exceeding the one percentage of turnover or capitalism if that all the expenses are exceeding the vatma one percentage of turnover material advertisement expenditure foreign [Applause] [Applause] foreign [Applause] that is an important disclosures you need to maintain but you are not disclosing that information that's why that is also Atma material item improper disclosure of what my accounting policy in notes to that accounts that is also will affect the Atma significant economic decision that is also about my material s materiality level individual aggregate next legal definition legal consideration legal consideration not in accordance material last one is one or two pages of stuff is insignificant quantity but special context it may be insignificant special circumstances are computer software automatically it may be material in future it having the birthmark emulator can you tell me Community effect means what my aggregate effect so right now this is an insignificant but in future this may be what not significant and the future foreign insignificant quantity but the specific context future insignificant future significant insignificant means what not a material significant means material foreign audit engagement and what my audit program audit engagement and next Verma audit program two standards names inherent limitations audit audit engagement and the audit program so audit engagement and nothing but what is so what is agreeing the terms of audit engagement yes is 210 standard name and surrendered agreeing the terms of engagement agreeing the terms of Atma engagement agreeing the terms of Engagement accelerator of Engagement and indeed points so shall we start our discussion suppose ABC limited game ma ABC Limited e x y and z and Co is an audit firm wants to become as an auditor sir foreign terms and conditions relating to audit below terms and conditions and conditions if they are accepted the terms and the condition they will give it as a signature under another copy of work auditor we know management so they will sign on it and they will send it to that vatma one copy to that audit from Auditor's point of view appointed completely opinion stages in the first stage appointments suddenly responsibilities indeed not responsibilities management responsibilities while our responsibilities under auditor responsibilities what are the responsibilities auditor responsibility so we are acknowledging their responsibilities to them only foreign foreign audit engagement letter is a given by the Huma auditor to the company explaining the what Mass scope second one scope of work duties under next one responsibilities of auditor Next One MA management either responsibilities we are conveying the three things one this is on what Mass scope of audit foreign [Applause] in later stages so letter of Engagement confirms the acceptance of an audit by Huma auditor foreign foreign engagement letter address board of directors of ABC Limited scope foreign these are the set of rules under regulation that are used by the odds sorry management for the preparation and presentation of what my financial statement applicable financial reporting framework into identification I will communicate with the Huma yeah next one sir after the completion of an audit definitely indifferent day applicable financial reporting framework foreign [Applause] [Applause] [Applause] audit report so if particular letter of Engagement under inters are audit engagement and a first part completed can you tell me standard number yes 210 what do you mean by the two tens are under nothing but agreeing the terms of audit engagement your engagement letters are three items what are the three more auditor so then form and the content of letter of Engagement is also important day next Concept in our discussion is on what my audit program so shall we start the background relating to audit program customer so next Concept in this chapter is what my audit program then we will understood the concept of audit program so first of all we have the three terms in an audit Mark the first one audit strategy next one auditor plan next one audit program objectives overall objectives of audit is foreign audit procedures to be followed detailed description of whatma audit procedures so we have in how many types of audit procedures as of Noma compliance substantive next summer risk assessment procedure and a audit procedures program suppose Monday x y z and Cosa XYZ so X is an auditor y z also there and either article assistant runners or article assistant one an article assistant foreign foreign foreign foreign increase sales assistant verification procedures can be performed by the audit stuff program audit program only we have to discuss about the whatma audit program shall we start so audit planning and program and strategy all the things are discussed in what my SCA 300 that standard name audit planning 300 name and dama audit planning yes agreeing the terms of audit engagement audit plan English content detailed approach program so with a little more detailed answer and I can say it is in what month audit program only which one is a more detailed one audit program next time it consists of the series of verification procedures [Applause] this is a continuous process foreign these are the series of verification procedures to be applied on the financial statement for the purposes audit procedures performed series of verification procedures means what my audit procedures audit procedures financial statement audit procedure in order to obtain the evidence so in order to obtaining the vatma sufficient and appropriate audit evidence so can you tell me why you need to obtain the sufficient and appropriate evidence in order to express an opinion so nothing but any of the nursery audit procedures of verification procedures foreign so next Amma it is a detailed less D Delta detail it isn't detailed audit plan first plan the breakdown income more details program it is a detailed plan of audit procedures with an instructions understand an audit program okay Advantage indices certain instructions immediately cash debtors as well as inventory these are the instructions given by the auditor to his staff foreign [Applause] audit program foreign [Applause] others foreign hours foreign automatically these are all the things also will be changed answer one audit program is suitable for that all the entities are nature of business change about you one audit program is not suitable for the other scientists of business nature change about you internal control change that means situation to situation will be changing sir two types of audit programs of Derma one is in what month General audit program second one is watma special foreign foreign foreign [Applause] that is a general so special partnership foreign foreign yes sir shall we continue with the advantages and disadvantages of audit program sir audit strategy next we have in plan after that we have what my audit program it provides the assistance key clear set of instructions and the directions they can complete that work in an easily manner can I imagine the total audit work like about the heroes and answer three months audit program and the future every day education so you can imagine the what my total perspective of what my audit so today is foreign Bank as a bank related entries or nothing but even then you know so nothing but cash transactions cash transaction s provision related adjustment sir difficult provision related provisions foreign and every one never even performs really so first hour second our third hour fourth hour fifth hour sixth hour seven hours seven hours is foreign foreign written classroom yes sir what is Atma without a written program without environment written program so vocabula Eve written program is so the reason danger of ignoring overlooking until by mistakes so this is also an advantage if you have a proper written audit program there is no overlooking there is no danger of ignorance next time so assistance putting their signature on that audit program after the completion of scientches only responsible if an article assistant putting their signatures on that audit program accept the responsibilities of work carried out by them individually they are only the responsible for that works next summer principle nothing but auditor auditor can control the progress of various audits in Hand by the examination of the program so six months every day understood that overall perspective of audit yeah [Applause] 10 days so nothing but it will be acted as a guidance for the future audits may they get a proper documentation on the how many days we are using for the vatma how many days we are using for the sales five days and plan just to know but unfortunately it will take how many days more 10 days next year audit program 10 days so next Advantage is what my it will be acted as guidance for the succeeding year it will be acted as a guide for the what month succeeding years next article assistance foreign so these are the advantages of what my audit program so what are the advantages are set of instructions overlooking sorry over overall looking next one article assistant selection next one audit program ignorance who are responsible for that work also we can know next control the total work progress next one it will be serves as a guidance for the vatma future audit any negligence isn't done definitely it shows as in what my evidence foreign suppose he is an expert sir he is an expert he can complete that work in and half an hour um so they cannot do anything beyond the audit program foreign foreign foreign foreign so once again I am telling to you sir advantages and disadvantages many times so as of now we are done with the second chapter also can you tell me what is the name of second chapter Ma auditor engagement and audit program audit engagement is agreeing the terms of audit engagement audit program a standard SCA 300 that is so next chapter in our discussion that is what my third chapter audit working papers audit notebook and audit risk so third chapter in our discussion nothing but what my audit working papers audit notebook and audit risk so last chapter I'm gonna discuss session answer audit engagement and audit program so audit engagement means nothing but we are discussing the sca 220 that is an agreeingly terms of audit engagement so letter of Engagement our draft Chesters are auditor so management science another copy will be sended to the Huma auditor so that is only what my letter of Engagement audit plan or sorry audit strategy audit plan audit program audit program so audit program means nothing but series of verification procedures needs to be done by the article assistance types of an audit programs two types and Matlab and general locate specifically foreign foreign audit planning foreign foreign audit performing States foreign and answer so next reporting stage definitely we will discuss what Ma how to draft an audit reports audit working papers foreign Sr that is giving the discount on that Festival Sun nothing but company isn't Sr nothing but wholesale businesses conditioner whether they are given the corrected discount or incorrected discounts or not I need to calculate all the things on my paper that paper needs to be stored as in one record sir a purpose or chronological order next to Allah in chronological order I need to save in and one file ma that is only called as audit working papers foreign but 20 public company one person company 120 companies contact um that is only called as vatma working papers that is only known as working papers taking simple form so at the time of conducting that audit auditor needs to maintain some workings that papers only known as water working papers handwriting dates foreign [Applause] will be there so just imagine yes because confidentiality will be violated basic principles governing an auditory Integrity objectivity Independence confidentiality okay at the time of uh at the time of conducting the daughter definitely you will get some information related to what my client so that information is and your membership will be canceled and you need to face the penal consequences like a huge amount of penalties such huge amount of penalties professional ethics a professionals same rules foreign foreign foreign audit working papers suppose if I am appointing as an auditor for the XYZ Limited Sr XYZ limited working papers need two types current second one and first permanent and last answer what is Atma permanent working file permanent working file second one current foreign asthma it doesn't change frequently and if change is limitations [Applause] together so that's why we will keep the type of files in that permanent working papers sales transaction everyday sales transaction so rental agreements foreign current is in a company or company related information statuted documents Etc what name of permanently every day alterations so that's why the files are maintained in a two forms sir right now Auditors are conducting that audit in an automated environment all the things will be stored in an electronic form if that's off to copy you need to uh you need to keep it in your laptop or device in a secured mode visor one folder you put two types of folder but classes so one folder isn't foreign so next Point sorry audit working papers comprises of all the documents prepaid or obtained by Huma or auditor IES it can be prepared by the auditor or obtained by the auditor so prepare Json 90s or double udv calculations every person will be acted as an auditor only paid assistant audit formula junior senior article assistant partners foreign when it comes to work all the persons are auditor when it comes to reporting requirements only the CF holding cop only the auditor summary all the persons who are conducting the audit sir prepare Chester like about obtained yourself into seven years so suppose 20 to 23.23 audition Sunday as per the standard 230 yes foreign how we need to read the definition ma it is a prepaid and collected and retained by the auditor at the time of conducting the vatma audit so can you tell me two types of audit working papers current permanent current and the indices are every year change that is it related to what my current year it related to the vatma more than one audit engagement more than one audit engagement via why we are maintained because it was permanent for the all the years it doesn't change what Ma foreign it helps in planning and performance of what my audit in performance and in planning of an audit definitely these working papers will be what my helpfulness supervision and directions it helps in supervision under review of the work done by the Huma article assistance third one these papers can be solved as an Evidence of the audit work performed by the auditor to support his opinion suppose in the common example law auditor is expressing the SR modified opinion modified law qualified adverse disclaimer completely we are expressing the adverse opinion sir adverse opinion chapter number you need to show the reasons what are the reasons means nothing but your working papers only will be solved as an Evidence in order to support your opinion opinion is definitely we need to show about our working papers you can show your working papers so I am conducting the audit as per the standards given by the icai only so where all the things are conducted as per the standards on auditing gunship you can show as in proof on me these are the three benefits of an audit working papers first two helps planning and Performing second one supervision and review third one it can be solved as in what my evidence next up next important question form and the content of Fatma are it working papers salaries Etc the form means so you can write it as in what my physical Electronica nothing but digital on it next content means what more what are the type of content we need to maintain so sales transactions related of wdb calculation of Provisions whatever it may be form and the content of working papers will be vary from the Rd to audit sorry suppose we are conducting the audit of Reliance Amma just we are conducting that audit of what my famous General Store Japan so nothing but a Jaffa okay sole proprietary ships it is a retail store Justice located in one rooms foreign [Applause] electronic form Ula huge volume of content you need to maintain less volume of content is enough so nothing but decision will be influenced by the some factors what are the factors one two three four five six is six factors nature of Engagement and answer sorry engagement Center okay statutory audit I am appointing as an auditor in the one company by this statute so second end of Monday non-start tutoring foreign [Applause] voluntary on sorry Pudu statute documentation just we are appointing as an auditor for the partnership firm in order to resolve the dispute between the partner Sakura mandatory audit card we can maintain the less documentation until nature of Engagement is [Applause] foreign is always complexity nothing but Amazon a company e-commerce operators or any transaction sensor that is always difficult to track billion days sales all over India all over the world any production time a complexity of business is very high normal business serve only physical sales and a Reliance stores law practice order Reliance Place Reliant smart number of transactions is high the complexity of business is what Ma difficult that is more and more documentation is required and a nature and the complexity of business basis nature and the condition of what my client records if they are maintained electronically we need to maintain the data also working papers also in electronic if they are maintained physically we need to maintain all the things in the physical form next time degree of Reliance on internal controls or internal control stronger business based questions [Applause] foreign [Applause] level of Reliance on internal control always the degree means what my level next summer so in the common two types of working files 30 times there is a difference between the types of working papers that isn't permanent and current is foreign [Applause] foreign foreign first one legal and organizational structure of entity can you tell me companies so permanent audit filo the legal and organizational structure of entity related records and content company in case of a company what are the documents we need to maintain in a permanent memorandum and articles of Association foreign ment once again you are only appointed as an auditor foreign current doesn't change frequently frequency extracts are copies of legal documents so that copies of legal documents agreements and the minutes among can you tell me what do you mean by the minisma meetings that is only recorded in that one piece of paper or audio recordings MLS meeting decisions foreign foreign next summer extracts are board meeting extract of general meeting relevant to the current year audit year auditor is related current so much nothing but Japanese only board meetings foreign foreign [Applause] current so if any decision related to the future is under more than one year related that is an permanent only for this year that is what my current clearer the third one yesterday and evolution of internal controls or internal control Sunday and these are nothing but a simple definition internal controls means policies and the procedures policies and procedures are designed and implemented designers implemented by management by main Aspen in order to in order to Achu organizational objectives organizational objectives once again I am repeating that now what is Atma these are the policies and procedures are designed implemented internal control organizational objective integer bcca example this is foreign foreign foreign [Applause] [Applause] foreign [Applause] foreign analysis of significant ratios under trends the analysis of what my significant ratio sentence law insurance claims law gross profit ratio financial management every year will be increased by the two percent foreign so that's why that will be kept in about permanent transactions and balances so current assets ratio gross profit ratio permanent here closing balances and opening balances copies of audited financial statements of what my previous years and a previous year's audited financial statements per minute [Applause] can you tell me funding policies we need to follow consistently consistency is foreign [Applause] [Applause] [Applause] permanent ly Japanese questions foreign [Applause] foreign foreign auditor does not render the certain Services Amma going concern is what my fundamental accounting assumption is [Applause] so reporting of a fraud by the audited to the central government ADT functions foreign [Applause] foreign external audit there is a different sama star children acne basis that is called as what my external audit if a partnership but it is an independently work just that is branch under any establishment is started by the company that is only called as brancher so next month basic principles governing and audit foreign foreign services are not rendered by the auditor 144 um okay with the reference to the companies and cost audit and Records Rules 2014 amended the provisions relating to maintenance of Fatma cost accounting records and what Mark cost audit accounting requires 25 50 non-regulated 3500 and exception to the cost audit code total revenue 75 exports Capital consumption of power generating unit next number some of these situations calling for the quality um next Branch or it already discusses some Branch auditors foreign foreign December 2019 already next summer so in this chapter already we are done with the Verma working papers concept what is the standard related working so next we need to discuss about the audit notebook foreign foreign [Applause] notebook that is only the difference are the forming part of Atma audit notebook is current it is an bound book in which large variety of matters absorbed during the course of every auditor recorded it is a permanent record of auditor permanent under for each individual audit auditor needs to maintain the word mass separate notebook auditor every year audit notebook is a great evidence tool sir it will be acted as a defense when any charge is brought against them negligence that is only notebook final guy notebook permanently foreign [Applause] foreign [Applause] foreign foreign what are the things are required to be maintained by the auditor in general scenarios all the things we need to record now working papers you need to remember the one standard that is what is the standard number yes how many years auditor needs to maintain the working papers seven years from the data repo okay okay sorry bro subscribe Limited audit reports seven years seven years suppose uh 31st March 2023. year ending books are under 31st May 2023 Rose audit report auditory production is 60 days within 60 days low we need to assemble in and one file that is only audit notebook foreign clearer foreign foreign so modified will be again classified into three ma what is Atma qualified adverse disclaimer antenna so financial statements first unmodified qualified adverse under disclaimer these are the four types of opinions we have actually financial statements are actual financial statements are foreign given opinion as an as a modified equation financial statements are some type of negative second case financial statements that may be qualified adverse disclaimerable but unmodified can you tell me we are the given the wrong opinion is audit risk means risk means a risk of giving audit risk means risk of giving appropriate opinion inappropriate inappropriate opinion foreign foreign audit risk this is termed as what my audience so audit risk means risk of giving inappropriate opinion when financial statements are in a charter [Applause] audit risk that is only called as what my audience so nothing but audit risk means what my risk of giving inappropriate opinion so you put money actual definition that is discussed in the esa 315 what is that my standard name sca315 full name so audit risk meaning in it is a risk that auditor gives the what type of opinion inappropriate audit opinion when the financial statements are materially misstated materially misated modified one age so if you are observing that yes sir if you are observing that audit risk means nothing but risk of giving vatma inappropriate audit opinion inappropriate audit opinion so when the financial statements are materially misted I want to discuss the sca 315 standard name s a three one five standard name full name identifying identify and assess the assess the a risk of material misstatements identifying and assess the risk of material misstatements through understanding of through understanding of through understanding of foreign through understanding of entities environment including internal control through understanding of entities environment and what my internal control one by one can you tell me misstatement Sunday in Tama either mistaken or is statements if that misstatements are material misstatements I think foreign foreign auditor and uh shareholders [Applause] procedures procedure foreign [Applause] procedures understanding of entities environment foreign identifying and assess the risk of material misstatement through understanding of entities and its environment ndd and its environment including internal control analytical procedures foreign [Applause] third one so in her entries control risk deduction risk foreign internal control doubt of account the balance our class of transaction under account balance so nothing but any account balance transaction and then it's a journal ism to a misstatement misstatement misstatement material s are the transactions [Applause] credit balance debit debit Bank online I don't know transactions from statements or wrong entries individuals that means individually material foreign foreign [Applause] foreign foreign below transactions need cashier verified one lakh above transactions foreign foreign other balances on timely basis it will not be detected it will not been corrected and sorry it will not be prevented detected corrected deficiency of internal controls what is deficiency of internal controls control risk detection risk surgery Ma is substantive procedure internal control s auditor to the option it is a risk of an auditor substantive procedures risk of substantive procedures the procedures substantive procedures these are the procedures are designed to obtain the evidence completeness accuracy and validity of data produced by the vatma accounting system accounting systems number [Applause] ipudu EV Ade two types control slave is internal controls implementation and design our responsibility management responsibility is a substantive procedures substantive procedures Play Summer sorry what is that my audit is what is the two types of restaurants [Applause] foreign [Applause] [Applause] foreign foreign normal and a substantive procedures substantive procedures [Applause] performance internal controls weak and the meaning and statement sequence substantive procedures that's why what type of relationship between the three type of in inverse relationship then indirect relationships substantive procedures performed by the auditor it is not sorry it is unable to detect the vatma misstatements inverse foreign States surprise so nothing but every article at least once auditor needs to conduct the surprise checks so at least surprise surprise surprise two points [Applause] at least once in an audit as per an ICA guidelines every audit Supply section foreign foreign [Applause] [Applause] foreign foreign foreign foreign [Applause] foreign [Applause] foreign [Applause] foreign foreign [Applause] [Applause] surprising next surprise results foreign [Applause] checks should be communicated should be entered mandatory you need to communicate it with a Huma foreign that means modified unmodified is our name is foreign actually we are disclosing our audit plan and audit program to that client in order to facilitate the audit smoothness foreign [Applause] [Applause] foreign foreign [Applause] audit evidence foreign [Applause] foreign [Applause] opinion I information you need to follow what my audit procedures sir audit evidence we need to discuss under SCI 500 standard mark SCA 500 and a standard name is an audit evidence only audit evidence meaning it means the information received by the auditor yellow westerns are information client information is external information [Applause] foreign opinion audit planning audit procedure sometime he audit procedures conclusions conclusions based on this conclusion we need to express what my opinion stages based on conclusions auditor expresses an opinion definitions definition when financial statements are materially mistaken statements and information obtained by the auditor by management or external to that entity in order conclusions based on conclusions auditor needs to express whatever compliance substantive risk assessment procedures complaints procedures means internal control substantive procedures means risk assessment procedures means identify and assess the risk of material misstatement what is Atma identifying and assess the risk of material misstatement risk assessment procedures what are the audit procedures needs to be followed by the auditor in order to obtain what my audit evidence of financial statements are correct or incorrect or information obtains procedures only called as audit procedures without audit procedures are it completely foreign [Applause] together Food Industries yes sir next time so risk procedures foreign foreign foreign [Applause] what do you mean by the analytical procedures foreign ratio under Trend analysis ratio and vatma trained analysis gross profit rations are last year and the first year five percent secondary rendama ten percent Thirty random or fifteen percent so can you tell me what is the ratio we are using my gross profit ratio and the trend increases every year five percent surrender first permanent foreign analysis in order to in order to investigate unusual fluctuation unusual fluctuations 49 number the usual fluctuation all of the sudden five percent usually unusual unusual investigation [Applause] accounting system analysis of data is combined leverage ignore unusual fluctuations are reasons analytical procedures so audit procedures complaint substantive substantively to desktop details analytical procedure of details from only three times foreign [Applause] are you clear with isma so audit procedures names identify and assess the risk of material misstatement through understanding of entity and its environment audit risk is [Applause] foreign independent auditor overall objectives of Atma independent auditor under audit conducted in accordance with are it conducted in accordance with standards on auditing or it conducted in accordance with the vatma standards an order sorry puru overall objectives overall objectivity expression of opinion is 300 series 400 as well as 500 600 700 all the standards on auditing standard 200 as an independent auditor you need to follow the whatma all these standards on audited opinion Expressions audit procedures procedure evidence audit evidence substantial is an objective based on that he needs to express what the opinion that audit evidence sufficient and appropriate audit evidence information is a 10 transactions information 200 transactions information that is quantity foreign process the evidence [Laughter] 200 auditor shall obtain the sufficient and appropriate audit evidence and the performance of what my a procedures performance is compliance risk assessment procedures [Laughter] evidence that must be sufficient in terms of quantity appropriate in terms of quality in the form of what my performing the substantive procedures as well as complaints procedures foreign he can check the functioning of what my internal control system auditor is foreign foreign [Applause] foreign [Applause] section compliance procedures can you tell me what my substantive procedures normal Miku justices practical so in Practical life all the things will be done by the applications accounting software so medium organizations are following the word panic large organizations are following the Oracle as well as sap foreign foreign foreign [Applause] foreign [Applause] disclosures [Applause] analytical procedures compliance procedures existence relating to what my substantive procedures I think audit is relating to vatma foreign [Applause] foreign verification so assertions about the what my test of presentations and what my disclosures under into my day so nothing but what Ma last one disclosure notes to accounts foreign [Applause] sir salary paid enough definitely they will give you some information about this I'll repeat yeah foreign foreign foreign foreign foreign foreign [Laughter] historical cost minus depreciation should be foreign foreign foreign foreign Square occurrence accuracy completeness classification Ma verine osma occurrence accuracy completeness classifications foreign [Applause] tester presentation evidence sorry I will classify evidence foreign foreign [Applause] [Music] foreign foreign [Applause] foreign foreign so nothing but I will prepare one question foreign [Applause] foreign just we are observing yourself observing that is only visual foreign [Applause] foreign [Applause] [Applause] [Applause] [Applause] are strong the internal control internal evidence next third one evidence in the documents are written representation is usually more reliable than what my overall visual sorry written are more reliable written is only more alive ipudu sir example datas balanced.com obtained by the auditor himself is more reliable than the obtained by through the whatma entity and if at the nonsense lasted nonsense Point Emery is procedures to obtain audit evidence your number methods to obtain audit evidence foreign foreign foreign audit techniques are form part of firm part of audit procedures audit techniques audit procedures in the audit completely audit procedures poaching off credit sale transaction of Atma credit sale transaction audit procedure substantive procedure sorry poaching e substantive procedures Credit Salt credit sale transactions sample decision technique so credit sale transactions external confirmations audit procedures audit procedures completely and definitely we need to use whatma some tools techniques or methods exam so every example entries is an audit procedure credit sale transactions definitely angels are sample Technical and the answer okay foreign audit techniques and a audit techniques always will be included in the vatma audit procedure questions sample materials what are the procedures to obtain the vatma audit evidence inspection foreign [Applause] so nothing but what my audit procedures means a group of what my audit techniques what are the audit techniques are nothing but external confirmation conformation external confirmation computation analytical procedures observation inspection inquiry and Confirmation definitely you will get vatma body dividends audit evidence in performing the Verma compliance procedures substantive procedures are into performance one or more following others foreign [Applause] foreign foreign [Applause] foreign [Applause] foreign [Applause] foreign [Applause] take a break so next we need to discuss about the vatma audit report concept so audit report and again we need to remember the one standard number that is what my SCA 700 so nothing but SCS 700 is nothing but is talking about the Verma audit report sir last stage in an audit is what map we need to express audit opinion we need to express what my audit opinion so audit opinion Express said we need to use the what my audit report so audit report as per se 700 they are mentioned the one standard format for the vatma audit report the standard format only we need to follow in order to express what my opinion so example many times again sir what are the elements are contents of audit report and answer the first one is nothing but title second one is nothing but what my addressee third one is what my Auditor's opinion basis for opinion foreign key audit matters management responsibilities Auditors responsibility other reporting responsibility signature of auditor place of signature date of Auditor's report if 12 contains every auditor at the time of issuing that audit report maintenance 700 standard law they are mentioned about the vatma what are the elements are contents we need to maintain in and what my audit report foreign foreign shall we start Ma so this isn't what my Reliance annual report sir so I think Miro audit report so this is in what my Reliance annual report so I think every company needs to file annual return under Section 92. so nothing but what my every year annual return and file jails the annual returns nothing but directors responsibility statement and financial statement audited financial statement and audit report so company performance foreign foreign independent auditor support so first of all they are the given that what my title first they are the given that about what Mark title is independent auditors to the members of the Reliance Industries Limited foreign [Applause] foreign foreign we have audited the Standalone financial statements of the Reliance Industries limited company report if a company is limited so a producer and a nano while the financial statements what are the financial statement comprises of what month a balance sheet foreign foreign [Applause] unmodified opinion so sir prepared that financial statements are showing what Ma true and failure opinion paragraphs foreign foreign introductory second para in that opinion is what type of opinion we are expressed yes sir unmodified yes applicable financial reporting framework as it is [Music] reporting [Applause] financial reporting framework two types the classification foreign framework is it is so fair presentation number of production manufacturers surrender schedule three in companies act 2013 either slm follow or wdb follow and property plant and Equipment Productions complaints in our opinion the financial statements are present fairly in all material respect in accordance with the applicable Financial rape you can deviate from the compliance framework you can deviate from what my compliance framework foreign complaints yes sir next time balance sheets a presentations general purpose financial statement and a general purpose financial statements one day and is representation foreign most of the financial statements Allah paid presentations specific purposes foreign foreign [Applause] what is that one so Auditors responsibilities responsibilities requirements on the Integrity objectivity Independence audit evidence on this Earth that audit evidence sufficient and appropriate is responsibility scientists are under nothing but expression of opinion opinion evidence the dividends is sufficient and appropriate dividends then I am giving the datma audit opinion I am following the standards on auditing I have opinion foreign that is only we need to remember so eggs next time next para going concern ma next paragraph is near future business ES so this is on what my going concerned para no definitely so first one more tidal addressee opinion para basis for opinion going concern Ed matters are important important audit matters foreign attention foreign out of some matters are important in order to draw users attention are key audit matters in terms of whatever you put 100 matters now key audit matters five matters statements of listed entities the auditor will communicate the key audit matters in an audit report as per se seven not one under key audit matters reportables in the 700 standard law but seven understandable report is we need to remember key audit matters content is described in what month is sorry paragraphs key or it matters are those matters in our professional judgment not decision-making important in the Standalone financial statement and then it is important sorry matters according to these questions aren't a clearly these matters are addressed in the context of audit of financial statement is foreign emphasis means highlight only transactions and other matter means emphasis of matter paragraphs financial statements information in financial statement one highlights foreign foreign foreign only difference between the emphasis of matter paragraph and the key audit matter paragraph is simple ma TCW is the communicator in a matter of highlight challenge a key audit matter financial statements emphasis of matter paragraph notes information [Applause] foreign prepared approach [Applause] NRV Nissan internal controls implementation it is your responsibility only foreign foreign [Applause] foreign section 143 12 143 duty to make inquiry six matters next summer 143 11. Japan subscribe [Applause] reporting responsibilities requirements foreign foreign foreign auditor foreign foreign foreign management responsibilities Auditors responsibilities other reporting requirements Signature Place data data audit report Heroes audit report issues is audit types of audit report types of audit report so how many types of audit reports disclaimer Vita Network definition disclaimer foreign the contents of audit reports exchange or sorry so next we need to know about the different definitions of Fatma so each and every type of opinion so just talk sorry for two examples yes sir what is that concept so first of all the reason for our done by the cashier sir that is done by the Puma cashier foreign material s [Applause] foreign foreign foreign material but not always material but not pervasive so definitely it is a material and it is [Applause] qualified acceptance that evidence related fraud economy statement that misstatement is you know proper evidence [Applause] opinion material but not pervasive means qualified material and pervaso means what Ma ude sufficient and appropriate audit evidence is that material and overall impact is qualified antenna sir sufficient and appropriate Oddity evidence or other items other items material but not pervasive evidence we are expressing the batma qualified sufficient and appropriate audit evidence is not their mind sufficient and appropriate order dividends that is a material overall impacted qualified foreign evidence disclaims definition statements are showing true unfair view applicable financial reporting Frameworks we can express the word opinion unmodified unqualified clean report true and Fairview opinion foreign [Music] adverse next I'll ask to them disclaimers situation sufficient and appropriate audit evidence what type of opinion we can assume disclaimer sir not able to obtain the sufficient and appropriate audit evidence evidence but we are not satisfied with performance so if you also need lesser table and example evidence foreign foreign foreign foreign past audit report board of directors CRA 2 is an intimation about the appointment CRA 3 is nothing but what my report secretarial audit from MR2 last concept MR2 is foreign [Applause] are it okay so removal of statutory auditor 140 Master statutory auditor removal removal resignation and special notice is contained in water section 140 so details about the name and organization structure details of audit work to be performed audit program next time true or false law Sr true or false law maintenance of fast Accounting Standards is a mandatory okay sir wait sir foreign [Applause] true cost accounting standards chip in section 148 148 140 next summer foreign foreign foreign foreign thank you foreign 30. total how many marks um difference between the statutory audit and internal auditor coverage and subscribe my channel foreign foreign foreign so what is the next chapter normally I think chapter one chapter two chapter three chapter four and chapter 6 Dunson so next only three chapter spending sir but writer right now straight away I will go with the water foreign foreign audit applicability of Karo what is a draw applicability of curve applicability foreign auditors order 2000 20 Sr within the bracket what now 2020. Sr is an additional reporting requirement a normal reporting requirement additional reporting requirement is additional reporting a requirement additional reporting requirement order already the order order means the order is applies to is applies to every company every company including foreign company including which company foreign company until domestic company foreign it shall not apply to however it shall not apply to it shall not applies to following class of companies following what my class of companies so what are the following companies surrender the first company is nothing but Banking Company banking companies companies third one Section 8 company section eight companies next summer foreign foreign [Applause] a point not being a asthma what is Atma not being a subsidiary or folding company of subsidiary or holding company of a public company name not being in subsidiary or holding company sorry put a point into surrender foreign foreign shall not exceed rupees one crore as on the balance sheet date as on what did balance she did conjunctions important public company Holdings foreign foreign [Applause] total borrowing shall not exceed shall not exceed rupees one crore at any time during the at any time during the previous year at any time during development previous year at any time during the vatma previous year and is foreign turnover shall not exceed rupees 10 crores turnover shall not exceed what my 10 crores points borrowings satisfied yes guarantees Securities loans or advances next summer other loans Investments guarantees made by the company deposits next summer cost records next one month start tutor reduce next one discovery of undisclosed income next one month default in repayment of views next one month end use of funds rised next one reporting of frauds next one needy company next one related party transactions internal audit system next one non-cash transactions next Verma non-banking financial institution cash law says resignation of Auditors next one more material uncertainty Corporate social responsibility next one modified opinion in the other group companies so totally 21 sir but numbers foreign foreign foreign [Applause] foreign foreign physical verification at least once in a year at least once in a year auditor needs to as a conductor physical verification answer first physical verification channels and responsibility over the management physical verification channels and responsibility over the management so our physical verifications what type of an Evidence you can get Visual Evidence immobile properties definitely we need to check What My Title needs registration certificates value building on this sorry building in a value increase then we need to conduct the valuation that is not possible if the change is 10 percent or more of what my aggregate of net carrying value of each class of plant under property and Equipment suppose one like one lakh in the month net carrying value okay plant and missionary key one lakh is a net carrying value is changes revaluation upward standardization can you tell me you put net carrying value and the percentage increase in the surrender 50 percent is increasingly also foreign foreign foreign [Applause] Japan so are you clear with the first class fixed asset so fix it so what are the points you need to check my fixed assets register physical verification immobile property revaluation disclosure transactions the amount of change also so I think first one is overma second class in Karo is what my inventor is so nothing but we are in the desert side now fixed asses is done next one inventories so what is that inventories related surrender first we need to done that physical verification of inventories my physical verification of inventory average men one life foreign foreign raw material working Progressive foreign foreign foreign so that's why you need to give that information about the vatma all the quarterly written statements filled by the company with respect to the whatma bank whether these are all the things are correct or incorrect and auditor tells call fake returns auditor foreign [Applause] third one Investments security loans are advances whether during that year company provided company provided loans are provided advances in the nature of loans guarantees security to watma any other entity yes said for that is it what my ESET so I put a normal yes principal business is to give loans regular government loans shareholders regular businesses [Applause] Investments guarantees loans or advances are securities that is an important matter we need to communicate this information to whom our shareholder foreign if you are the given the loans are advanced Essa or guarantee security or Investments to whom subsidiaries joint venture Associates parties other than subsidiaries joint venture Associates aggregate amount during that year [Applause] starting of the year is balance outstanding Anthony at the end of the vatma balance foreign foreign foreign terms and the conditions of the loans and advances are not prejudicial to the company's interest I need to report under the Quran negative result also mentioned just a positive also we need to mention under what now section 143 subsection 1 duty to make inquiries foreign dueling foreign foreign foreign foreign company [Applause] is Investments guarantees made by the company ma okay foreign foreign foreign okay now what are the four points are done Ma fixed assets inventories Sr other loans are sorry loans Investments are guarantees Securities other loans so other loans on good news ah a report on other legal regulatory requirements additional reporting requirements additional reporting requirements fixed assets yes physical verification physical verification next summer foreign [Applause] [Applause] [Applause] [Applause] working capital limits in excess of I crores from the aggregate borrowings yes it is [Applause] foreign [Applause] extra so yeah [Applause] foreign [Applause] [Applause] foreign [Applause] foreign foreign foreign foreign foreign foreign foreign foreign foreign [Applause] foreign indeed sir income taxes foreign [Applause] foreign [Applause] [Applause] jonama companies regular in depositing goods and services foreign foreign foreign foreign company has not surrendered or disclosed any transactions foreign foreign foreign ers [Applause] can you tell me yes yes Indian bank and the default yes sir nothing but a financial institution can the default Jesus yes period and amount of default to be reported each lender we need to yes are given that format for format open SSC bank is next to digma sir name is nextrah purpose of terms five months sorry for five months alone highlight holding company is taking the loan in order to give the vatma secondary holding company is taking the loan foreign foreign foreign [Applause] next number is [Applause] the company is held in the world foreign [Applause] objective class ES [Applause] foreign [Applause] reporting initial public offer for other public offers section chapter last section preferential allotment around foreign foreign foreign foreign foreign [Applause] [Applause] next company so under E-class only nidhi company subscribe net wound funds deposits one issue 20 rupees foreign [Applause] company so that's why these are all the things are not at all applicable ten percent correct foreign system um external to the company you are an independent person is foreign [Applause] [Applause] matching [Applause] so an organizations foreign [Applause] all the reports of internal Auditors are considered by the Huma statutory auditor Nano report is utilization foreign foreign but you need to remember the section number Just One Day at the end of one of their schools transaction director stand right there 192. so reports transactions nbfc confusion is non-banking financial institution so if you are observing that Sr 45 IA of RBA actama questions that this needs to be registered under section 45 IA apartment RBA foreign the nbfc activities are nothing but yeah activities nbfc and random alone nothing but as deposits asset gives us a valid certificate of registrations activities next summer company can you tell me what my core investment sir core investment and meaning business activities satisfaction [Applause] Investment Company a company other companies [Applause] foreign foreign [Applause] foreign [Applause] depreciation depreciations foreign foreign [Applause] [Applause] resignation is a dangerous thing sir Casual Vacancy resignations [Applause] permanent previous auditor the communicator definitely we need to document all the things foreign Nesta material uncertainty foreign [Applause] foreign [Applause] foreign [Applause] is there and right audit report that company is capable to meet out the existing liabilities at the balance she did when they followed you erosion liabilities not in existence foreign social responsibility foreign schoolingana yes six months free foreign foreign [Applause] [Applause] similar subscribe memberships foreign foreign CSR responsibility for the public okay [Applause] last three years foreign modified opinion in Karo in other group companies subsidiary holding company Consolidated financial statements on Standalone financial statements holding company group companies foreign consolidation letter subscribe holding company subsidiaries financial statements include consolidation means Consolidated financial statement Consolidated financial statements Consolidated financial statements yeah foreign foreign there have been any qualification or adverse remarks by the respective Auditors in the company's report order in reports of the companies included in the vatma Consolidated financial statement holding a Consolidated even subsidiary holding company um they are not mentioned these points foreign car so shall we go for the next chapter the next chapter in our discussion that is chapter number eight ma that is what my miscellaneous audit what is that my miscellaneous audit so each afternoon we can call it as a what Mass special audience special or it's a entire order foreign foreign so first one is nothing but audit of can you tell me what my audit of what is that Ma educational so what is that first audit in our special auditsar and there so how to audit the educational institution or what my colleges foreign [Applause] next summer audit of Cooperative societies Institution hospitals trust local bodies Cooperative Society confirmed yes [Applause] Cooperative societies first we will start with the batma how to audit The Cooperative societies foreign foreign foreign foreign [Applause] okay foreign foreign [Applause] so West Bengal and konsa state these are all the things you need to identify at the time of appointment auditor for the Cooperative Society so Cooperative Society just imagination okay example milk distribution is cooperative societies foreign [Applause] Commission is a business organization Cooperative societies and what my business organization it is a what must special mode of doing that business pulling all means of production Productions fertilizers nothing but credit Cooperative Society centers foreign foreign Act foreign foreign person holding the government diploma in cooperation under accountancy and a degree holderness are these Central active only state active degree holders Cooperative Society always CEO only needs to be appointed as an auditor statement is true or false false also clear point is different register of companies or the different register of Cooperative societies of the different auditor appointment management auditor is report foreign Society [Applause] [Applause] statement of changes in equity cash flow statement this is only the answer yes or what is books and accounts and regards to be maintained Central Cooperative Society is Central Cooperative societies act 1912 yeah foreign foreign next foreign foreign the person cannot become the member and hold the shares of a limited liabilities of the society so 20 days of the total numbers and Share value of 1000 I think 1000 Amma one day foreign the above role is not applicable registered Society is a member of another Society Cooperative Society law in Coco Cooperative Society members individuals they can hold the more number of percentages also shareholding also but individual members restrictions all over India that means we need to read only Central AXA foreign next summer summary Cooperative Society members loans and advances member Cooperative Society yes without any doubt alone [Applause] foreign next number Central rule Center so it cannot lend the money based on the security of immobile property sorry mobile property at the sanction of Batman register loan column a direct Edge and security mobile properties lending the money immobile property by the order state government under State Exchange foreign borrowing [Applause] internal rules and regulations definitely will be applicable next summer a Cooperative Society Cooperative societies no foreign next summer is the same way Cooperative Society every distributions members Cooperative Society at least 25 days of net profits are faster profit profits low 25 percent is [Applause] remaining 75 distributions foreign foreign foreign so how this Society use the reserve fund outside the business or utilize as a working capital in the case business yes foreign [Applause] next number details relating to loan distribution any other subsidiary books as per the destination apartment management next restriction of shareholders 20 or 1000 whichever is higher so this restriction is not applicable if one registered Cooperative Society can become the member in that department another registered Cooperative Society next restrictions on the loans and advances yes sir you can give the loans to that members under vocabula registered Cooperative Society registered Cooperative Society immobile properties mobile properties permission from the state as well as authorities restriction on borrowings borrowings this rules under regulations foreign [Applause] foreign foreign University we need to maintain the few side reading Sunday initial consideration at the time of appointment of an auditor what are the things you need to know initially what are the points auditor needs to kept in his mind is these are the side readings we need to maintain these are the side readings always we need to maintain sir so first of all what Ma first of all what Ma initial considerations second one n comes third one expenses and reliabilities next initial considerations under evening questions foreign foreign foreign system of internal control do you know anything about the internal controls are s internal control means what Mark policies and procedures are designed and implemented by Huma Menace men policies and procedures designed and implemented by the management in order to Varma in order to achieve organizational objectives foreign compliance next time while the accounting records accounting policies foreign foreign foreign foreign foreign foreign capital of the educational Institution foreign foreign manufacturer next summer authorizations related to freeze concession foreign foreign in addition to that college if we are providing the Hostile facility so hostile related use a Navy correct timely basis foreign hostile facility how they are collecting that vatma hostile features these are all the things we need to look college so definitely we can receive the word rental income so rental income definitely tenancy Agreements are nothing but what my rental agreements are suppose so rental agreement 10 000 per month ten thousand so for that purpose you need to check the department agreement rent receipts though foreign donations two types special purpose general purpose foreign [Applause] calendar donations foreign foreign so books about you as a gifts about you or any price distributions about you so hostile facilities are consumable related abortion so staff can deserve salary that is a major expenditures next on the common expenditure in candles are water facility electricity bill Sr sweeping maintenance so towards the students what are the third Monday scholarships foreign Exchange so salary payments ideas how much deductions we need to make so payment made to the teachers as well as other personal reference to that password content is a faculty other non-daging staff can the payments are definitely salaries credited to the bank account that bank accounts needs to be verified maintenance are faster so these are the expenditure expenditures written representation example foreign management only because you are only given that one representation representation of trenches foreign last year educational institution you need to remember the four sided initial consideration incomes expenses assets and liabilities p is received from the students interest donations rent expenditure towards the student towards the staff common expenditure the assets and liabilities fixed assets fixed assets register physical verification depreciation written representation yeah liabilities so first two completed what is a Tuma Cooperative Society is done educational institution done next shall we start about the water Hospital initial consideration next summer assets and liabilities my initial consideration is Sue but most of the educational institutions foreign [Applause] legal status and applicable legal status [Applause] foreign business [Applause] [Applause] that is only what my knowledge of client business minutes or majority cases patience donations of sex grandson donations foreign foreign foreign foreign [Applause] common next ingredient is [Applause] so that's why we can get the written representation from the Huma management so auditor wants to get an information about the grants related to uses written representation foreign verification and interest investment registered exactly expenses salaries to the staff such medicine slow high value medicines and injection synthesis related written representations foreign next summer sir last year expenditures analytical review analysis of ratios and Trends in order to investigate the usual fluctuations are unusual unusual fluctuations that is an unusual fluctuations we need to investigate properly next up esides and liabilities so foreign foreign Trust so just we will discuss about development Trust Trust so normal initial considerations are same so what are the side readings we need to maintain ma initial considerations expenses and liabilities so anyways are no change all right my initial considerations next summer meetings of minutes of meetings next time applicable statute related documents system of internal control list of accountings records and accounting policies educational institutions example of what my Red Cross that is child relief for you the majority of the cases they have an income of what month donations under grants also General special General special donations all the donations donations statements donations always cash flow accounts is special points foreign foreign so I think of simple example foreign actually sorry bro subscribe foreign foreign foreign [Applause] foreign [Applause] [Applause] telesa state government local self government governments panchayat municipalities Corporation weed in a local bodies local body local body elections corporations elections local bodies means local self government that is less than what Mass state government foreign foreign [Applause] municipality can be defined as it is an local self government in and what my urban area rural area municipality but Corporation local self-government means it is an village town City McDonald's Village Corporation it is smaller than what Mass state state government's name on our local bodies and down clearer foreign foreign taxation local services foreign very very important for an MC Kuma they are following that what basis of accounting ma cash always what is the system of accounting cash foreign [Applause] normal how they are maintaining the finance local bodies Essa how they are maintaining the vatma financial aspects to them what is the citing we need to maintain Financial Administration procedure expenditure control already there is accounting system and the market system Financial Administration example foreign objective so budget allocation may be one crore one foreign [Applause] budget next up date foreign foreign foreign foreign foreign secretaries as well as what my Commissioners the accounting system in Tama Cash System s accounting systems of audit of local bodies only meaning of local bodies and the wall of financial Administration related expenditure foreign sarasalu reporting on the fairness of the content presentation of what my financial statement local bodies financial statement preparation make with each unknown factors foreign [Applause] complaints [Applause] or confirmation sir any reports only reporting reporting reporting reporting reporting fairness and content of financial statement second one must change and weaknesses in the financial statements related whether they are following the rules and regulations last one is we can detect the fraud error and misuse of what my resources resources means Etc foreign foreign Administration stationary repairs maintenance Etc government local boards office equipment Furniture fittings Etc absolutely liabilities so just uh next registered so accounting system and budget allowing first accounting systems basic information about the Constitution and functions and financial status of local body the reality and then it is foreign deposition is foreign foreign so it is this is not because of ICP governments are previously TDP Congress Pokemon grants and amounts accredited to the municipalities accounts in AP na is [Applause] then you can write something about the vatma local police clearance so special audience [Applause] actual figures while a budget related tax collection while a budget related expenditure we need to issue that audit report then audit is done so all the special audits also done in envirma miscellaneous topics are how many audits are done Hospital educational institution trust local bodies Cooperative societies dancer clearer foreign so shall we start the chapter number five sir so please tell me page number page number what Ma 21 okay so chapter number five internal check internal control as well as what my internal audit so first thing then foreign internal audit so first Total system means always it is in what month internal control download internal audit good yes sir already internal control simple definition what is the definition ma policies under procedures are designed and implemented by designed and implemented by Huma implemented by human management in order to in order to achieve in order to achieve organizational objectives and procedures internal controls and internally we need to put some control so that is only called as what internal control the internal controls implementation propagation two things internal audit cerebral celebrity Reliance Reliance law internal control challenge foreign is reviewed by another person what is Atma is reviewed by vatma another person working always it will be effectively adjusted foreign internal controls internal controls nothing but what my internal audience statutory what is statutory internal audit is a nothing but any other person so statutory auditorial and definitely CA Holdings foreign lack Independence these are the policies procedures are designed by the management in order to achieve the vatma organizational objective internal work done by the one person is reviewed by the vatma another person internal audit and nothing but internally we are appointing one person in order to check the vatma internal controls that is only called as what my internal or internal auditor everything so always definition is foreign foreign so this definition is as per the vatma esca 3 1 5. 315 identifying and assessing the risk of material misstatement through understanding of entity and its environment including internal control and the internal control definition but in standard number SCA 315 is foreign first one management policies second objective asset safeguarding third one prevention on the deduction of misstatements that is errors are Force fourth one more checking and accuracy apartment completeness of accounting records and the internal controls implemented internal controls we can achieve the how many objectives mark foreign foreign foreign [Applause] foreign prevention of wordsma frauds and errors next number safeguarding of esets safeguarding of watma esids last one employee satisfaction s segregation of duties dude segregate means dividing segregate means dividing foreign foreign [Applause] foreign irregularities advantages just you need to add what my employee satisfaction sorry employees satisfaction is foreign [Applause] foreign [Applause] better for activity [Applause] yes detective implementation before occurring itself we will prevent it that's a deductive one day after occurring we will identify it cameras [Applause] detective a security to the assets password reviews foreign what are the types of internal control system preventive detect examples what are the examples of preventive controls what are the examples of what my detected next one importance rape objectives benefits advantages of importance efficiency prevention of frauds and errors we can achieve that what my organizational objectives and goals financial information objectives accuracy and completeness of accounting requires accounting records means what my financial information complains with the loss and regulation complaints with the word Micra management policies advantages foreign foreign foreign foreign implemented organizations organizational structure the organizational structure mistakes foreign next one size of organization ma always small organization key low levels of internal controls so in this case sir normalization sole proprietary foreign [Applause] foreign foreign [Applause] foreign foreign awesome so that is only the point ma costly to implement always inters internal controls implements abuse of power what is that my abuse of power means stop management we cannot do anything design and implement it designs foreign human methods frequent follow-up measures last question in this chapter is responsibility management auditor foreign [Applause] foreign what are the techniques we have Monday foreign [Applause] foreign foreign foreign sir is a formal Control Systems we can say it hasn't written well a clear Clarity is suitable yes segregation of duties internal control system difficult to identify using the vatma narrative foreign foreign dancer soy potential so senior manager CEOs foreign foreign foreign foreign you can get an idea about the what is that internal control system is an implemented in our organization so it is in what my pictorial representation pictorial representation of internal control system depicting what various elements such as an operations processes controls which helps in giving the clear and comprehensive view of an organization working to that auditor yes foreign foreign sorry sales invoices Sr print printed numbers sales invoices serial numbers not applicable then I will get an idea about the what are the internal controls relating to sets so sales is series of questions series of instructions to the member of an audit staff required to follow any other person isn't staff in that audit form foreign as a stock monitoring related yes that is a senior persons in an audit firm nothing but ever seniors are experienced a person prepared childhood series of questions number of questions sometimes are nothing but foreign please stand up so same concept internal control question itself so in was the asking of questions to the various people at different levels of an organization question a reason pre-designed format is to ensure the collection of complete and all relevant information [Applause] only Japanese designs audit form design just say answer audit formulas checklist answers so that is we need to check our options [Applause] foreign nextra hello so last make a self study for the last answer self study means you need to read on your own 1159 um scope are functions components of internal control foreign Arrow just walk a revisions foreign foreign foreign