Ajmer din

New Course To be updated Old Course "Analyse with Ajmer Din" 1(a) The auditor shall determine, from the matters communicated with those charged with governance, those matters that required significant auditor attention in performing the audit. The auditor’s decision-making process in determining key audit matters is designed to select a smaller number of matters from the matters communicated with those charged with governance, based on the auditor’s judgment about which matters were of most significance in the audit of the financial statements of the current period. In making this determination, the auditor shall take into account the following: - Areas of higher assessed risk of material misstatement, or significant risks identified in accordance with SA 315 - Significant auditor judgments relating to areas in the financial statements that involved significant management judgment, including accounting estimates that have been identified as having high es...

Recent Decisions 1. A Chartered Accountant in practice CAN Can Act as mediator in Court, [Same as “arbitrator’, Permitted under Regulation 191]  Can be a settler of a Trust. Can Engage himself as Registration Authority for obtaining digital signatures for clients.  Can be Internal auditor of a company & statutory auditor of its employees PF Fund. 2. WITH CONDITION, A Chartered Accountant in practice CAN Can be equity research adviser, but cannot publish retail report as it be other business/occupation.  Can hold the credit card of a bank when he is auditor of that bank, provided o/s is not more than Rs. 10,000/- beyond credit period limit. Can be a Director Simplicitor (which is generally permitted as per ICAI norms), if he is non – executive director, required in the BM only + remuneration to attending BM only. (CA in service)  Can appear as tax representative before tax authorities on behalf of his employer, but not on behalf of other em...

Intermediate New May 2019 1(a) Question from SM 3.131 1(b) Where long-term investments are reclassified as current investments, transfers are made at the lower of cost and carrying amount at the date of transfer Where long-term investments are reclassified from current to long term, transfers are made at the lower of cost and fair value at the date of transfer 1(c)

Theory 7 (a) Credit rating is a very important indicator for prudence but it suffers from certain limitations. Some of the limitations are: (i) Conflict of Interest – The rating agency collects fees from the entity it rates leading to a conflict of interest. Since the rating market is very competitive, there is a distant possibility of such conflict entering into the rating system. (ii) Industry Specific rather than Company Specific – Downgrades are linked to industry rather than company performance. Agencies give importance to macro aspects and not to micro ones; overreact to existing conditions which come from optimistic / pessimistic views arising out of up / down turns. At times, value judgments are not ruled out. (iii) Rating Changes – Ratings given to instruments can change over a period of time. They have to be kept under constant watch. Downgrading of an instrument may not be timely enough to keep investors educated over such matters. (iv) Corporate Governance Issu...

1. Min. no. of Directors (Individuals) in Public 3, In Private 2, In One Person 1, Max. no. of Directors is 15 for any type of co. More than 15 directors may be appointed by Altering AoA + Passing SR in GM. [Section 14 + 149(1) + First Proviso] 2. (a) Retiring director à At AGM à Vacancy not so filled up + Not expressly resolved to “Not to fill vacancy” à Adjourn AGM (Same day next week) à Vacancy not so filled + Not expressly resolved to “Not to fill” à Retiring director shall be deemed to have been re-appointed. (b) No Re-appointment if à Resolution for re-appointment was put and lost or Director expressed not to be re-elected or Director is disqualified [Section 152(7)] 3. AoA may give power to BOD to appoint any person as additional director (Other than person who failed get appointed in GM), Tenure – Till next AGM date / or last date on which AGM should have been held. Additional director can be appointed only by BOD and not by members. Other Conditions à...