According internal Audit, Problems in the valuation of assets

The accuracy of the balance sheet and the estimated profit of a concern depend upon the correct valuation of the assets and liabilities . the valuation of the assets is made by the proprietors or  officials of company or the firm. the auditor has simply to apply certain tests regarding the valuation of the asset. he is entitled to rely upon the certificates of component person such as valuers , surveyors etc. If he does so he, must mention this fact in his report . He cannot be expected to possess the technical knowledge to find out the value of the assets. Under such conditions , he should       the valuation also refer to the invoices to find out the prices at which such assets were acquired. Of course he cannot guarantee the correctness of the valuation of the assets. 

New company Registration issues and solutions

When any one or body  wants to start a business he has some question

  1. from what name business should be started this is major  problem among the people to choose the name of company or business it is not too much difficult we will provide you the solution to choose the business name.
  2. what business should be start how to calculate expected profit because the purpose of main business is a profit but how to calculate the profit which has been expected from the business that feasibility we will discuss the below
  3.   from where things to be prepared or Purchase to resell
  4. from where skilled  labor to be obtain, we will discuss this below
  5. how to get raw material
  6. how to select business
  7. how to see the hidden profit and expenses
  8. how to see the business in future.
  9. how to execute the business.

above mentioned issues are really has to face when any body think about to start new business 

What name of Business suit to 

owner can select the business name on his own name because people  knows him very well

otherwise he should start his business with the name of his parents

or start two , two alphabets from his father and mother name

or start his business name from his profession

or writ his business name with Islamic values

start his business name with local area

start his business name with city name

start his business with and worldwide famous name

start his business name with trade makr

 what business should start 

before starting any business you should see the skilled do you have that skilled or do u have people those have that skilled search people or group with the skilled business required

from where goods to be prepared or Purchase 

before starting any business you should know the places from where you will get raw material for your finished goods or you will purchase things.

what is the meaning of verification

Verification means proving the truth or confirmation the student is warned at this stage not to confuse verification with vouching the expenditure in connection with the acquisition of an assets. One of the most important duties of an auditor in connection with the auditors of the accounts of concern is to verify the assets and liability  appearing in the balance sheet. He has not only to examine the airthmatical  accuracy and bana fide of the transactions in the book of accounts bu vouching.

How to check Bills Receivable

the auditor  should examine the lease deeds and agreement to ascertain the amount of rent payable , the due date and provision regarding the receipts etc. rent received.

bills receivable book should be compared with cash book and the pass book to see that the amount has been received on the due date inquiries should  be made regarding the bills which have  matured but the amount has not been received for them . such billed might have been dishonored or retired It is also possible that such bills might have been paid and proceeds might have been misappropriated by the cashier.

 

what should be object of an Audit

Audit Object: Process of any reconciliation 0r checking  or calculation of independents judgment whether the amount of balance sheet or profit and loss account has true and fare reflection as per book of accountant company Ordinance and other Law enforce in Pakistan or in summary you can say that a purpose of calculation and the checking of accuracy called the object of Audit.

  

Voucher as Basic Documents in Bookkeeping cycle

VoucherAs it has been explained in our before published post as on 18-july 2018 that voucher is a documentary evidence  in support of transaction in the book of accounts.

Voucher has following particulars 

  1. Debit head of Accounts/ credit head Of Accounts
  2. Particulars of the Transaction  supplier name , shop name, purchase items detail or expense name and details 
  3. date and bill date
  4. amount in words and digit 
  5. particulars of person to whom cash or cheques has been delivered                                                                       photo is given below  

what is vouching in Audit planing and internal Audit

In internal Audit  planning the term vouching has basic importance, this is the basic action which has been taken during the audit or you can say audit start with the vouching,

vouching : as every body who is relating with accounts knows that voucher is  a documentary evidence is support of a transaction  in keeping the book of accounts . The act of establishing the accuracy and authenticity of entries in the accounts of books is called vouching it is a technical term which refers  inspection by the auditor of documentary evidence supporting and substantiating  a transaction.

Tax on Builders

Tax on builders
Subject to this Ordinance, a tax shall be imposed on the profits and gains of a person deriving income from the business of construction and sale of residential, commercial or other buildings at the rates specified in Division VIIIA of Part I of the First Schedule.
it is also observed that The tax imposed under sub-section (1) shall be computed by applying the relevant rate of tax to the area of the residential, commercial or other building being constructed