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New Course To be updated Old Course 1 (a) Section 123(1) + Rule 3 Declaration of dividend out of reserve in case of inadequate or no profits 1 (b) (i) Exemption of rule 6. However only for CFS when all its other members have been intimated in writing and for which the proof of delivery of such intimation is available with the company, and do not object to the company not presenting consolidated financial statement, securities are not listed or not in the process of listing on any stock exchange and its ultimate or any intermediate holding company files CFS with the registrar which are following the applicable AS> Opinion CFS is applicable 1 (b) (ii) Term of auditor and rotation for auditor seciton 139(2) and rule 5 class of companies Every listed company or unlisted public company having paid up share capital more than or equal to Rs. 10 crores shall not reappoint individual as auditor for more than 1 term of 5 consecutive years and firm as auditor for more than 2 terms of 5 consecu

Answers of old course paper and new course will be updated here. New Paper analysis  1(a) SA 501  1(b) SA 560  1(c) SA 720  2(a) SA 550  2(b) NFRA Rules, 2018  2(c) 2.I.2 and 2.I.7  3(a) Classification of advances and provisioning  3(b) SA 265 3 (c) 2.II.1  4(a) SA 250  4(b) Auditor's procedure to verify completeness of information CFS  4(c) Para 3 Clause (xiii)  5(a) Solution to Behavioral problem  5(b) Regulation 19 LODR  5(c) 1.I.6 PE Or Audit in IT environment/SA 315  6(a) Audit of NBFC  6(b) SA 240  6(c) Data mining technique - Forensic audit  New Course answers 1 (a) For practical reasons, the physical inventory counting may be conducted at a date, or dates, other than the date of the financial statements. This may be done irrespective of whether management determines inventory quantities by an annual physical inventory counting or maintains a perpetual inventory system. In either case, the effectiveness of the design, implementation and maintenance of controls over changes i

1(a) Person may withdraw his consent in such manner as may be prescribed: (i) No minor shall become member or nominee of the OPC or can hold share with beneficial interest (ii) "resident in India" means a person who has stayed in India for a period of not less than 182 days during the immediately preceding financial year. (iii) A natural person shall not be a member of more than one OPC at any point of time and the said person shall not be a nominee of more than one OPC. 1 (b) Section 139 - (b) First auditors [Section 139(6)]: (a) Notwithstanding anything contained in sub-section (1) of Section 139 i.e. the first auditor of a company, other than a Government Company, shall be appointed by the Board of directors within 30 days of the date of registration of the company and the auditor so appointed shall hold office until the conclusion of the first AGM Re-appointment of retiring auditor [section 139(9), (10) and (11)]: (a) A retiri

New Course and Old course both answer New Course 2c Peer-to-peer lending. In this process group of people come together and lend money to each other. Peer to peer to lending has been there for many years. Many small and ethnic business groups having similar faith or interest generally support each other in their start up endeavors. Crowdfunding. Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business initiative. Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together. 3c Bootstrap 4c a Side Pocketing in Mutual Funds leads to separation of risky assets from other investments and cash holdings. The purpose is to make sure that money invested in a mutual fund, which is linked to stressed assets, gets locked, until the fund recovers the money from the company or could avoid distress selling of illiquid securities. The modu

 This blog contain suggested answer of both old and new course intermediate accounting, please scroll down to your interested course.

Disclaimer The Suggested answers hosted in this blog do not constitute the basis for evaluation of the students' answers in the examination. The answers are prepared by our team with a view to assist the students in their education.  While due care is taken in preparation of the answers, if any error or omission are noticed, the same may be brought to our attention through comments. The blog owner is not in anyway responsible for the correctness or otherwise of the answers published herein. Pending answers Question 5 Old Course answers November 2020 1(a) (i) Since, net realisable value is less than cost, closing inventory will be valued at Rs. 4000. Therefore, closing inventory is Rs. 4,000 x 50 = 2,00,000/- 1(a) (ii) The event is a non-adjusting event since it occurred after the year-end and does not relate to the conditions existing at the year-end. However, it is necessary to consider the validity of the going concern assumption having regard to the extent of insurance cover. 1(