Ajmer din

Both Old and New Course Answer NEW 1 (a) Incorrect - Where the firm is appointed as the auditor, the report is signed in the personal name of the auditor and in the name of the audit firm. (b) Correct - The existence of a satisfactory control environment can be a positive factor when the auditor assesses the risks of material misstatement. However, although it may help reduce the risk of fraud, a satisfactory control environment is not an absolute deterrent to fraud. (c) Incorrect - Hold office till the conclusion of the AGM (d) Incorrect - A joint auditor is not bound by the views of the majority of the joint auditors regarding matters to be covered in the report and should express his opinion in a separate report in case of a disagreement. (e) Incorrect  - The auditor of a banking company is to be appointed at the annual general meeting of the shareholders, whereas the auditor of a nationalised bank is to be appointed by the bank concerned acting through its Board of

Computation of Purchase consideration The Purchase consideration was discharged in the form of three euqity shares of  Namo Ltd. For every two equity shares held in Raga Ltd. Purchase consideration = 9000 X 3/2 = 13,500 (i) In the books of Namo Ltd. Journal Entries Business Purchase A/C         13,500.00 To Liquidator     13,500.00 Plant and machinery           7,500.00 Furnitures           2,550.00 Inventory           6,061.50 Trade receivables           1,530.00 Cash at Bank               913.50 Receivables               120.00 Foreign project reserve           465.00 General Reserve           300.00 Profit and loss account        1,162.50 (Cost of isssue of debenture adjusted against PL) 12% Debentures        1,500.00 Trade Payables           694.50 Provisions    

Suggested Answers ISCA May 2019 - Compiled by Ajmer Din Download -  https://drive.google.com/open?id=1pcLWC7sBnGRhk5RhyA2MBkkA5lpCUcuw 1(a) Methods of Validating the proposal: Large organizations would naturally tend to adopt a sophisticated and objective approach to validate the vendor’s proposal. Some of the validation methods are given as follows: - Checklists:  It is the most simple and a subjective method for validation and evaluation. The various criteria are put in check list in the form of suitable questions against which the responses of the various vendors are validated. For example, Support Service Checklists may have parameters like Performance; System development, Maintenance, Conversion, Training, Back-up, Proximity, Hardware and Software. - Point-Scoring Analysis:  Point-scoring analysis provides an objective means of selecting a final system. There are no absolute rules in the selection process, only guidelines for matching user needs with software capa