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Saturday, August 30, 2014
Download RTP for CA Final Nov 2014 - Revision Test Papers

Download RTP for CA Final Nov 2014 - Revision Test Papers

You can easily download all the revision test papers (RTPs) for CA Final November 2014 exams at free of cost in pdf format. Just click the following links.




Group 1:
  1. Financial Reporting
  2. Strategic Financial Management (SFM)
  3. Advanced Auditing and Professional Ethics
  4. Corporate and Allied Laws

Group 2:
  1. Advanced Management Accounting (AMA)
  2. Information Systems Control and Audit
  3. Direct Tax Laws
  4. Indirect Tax Laws


Recommended Posts:
  1. Check out the Amendment & Notes for IPCC - Nov 2014 Exams Here
  2. 10 Rules to pass CA / CS / CWA Exams  Here
  3. How to Pass Costing/ FM paper of IPCC? Take a look
  4. Download Companies Act 2013 Notes (Chapter wise) from Here
  5. How to Pass CA Exams Here
  6. All articles which is relevant to November 2014 exams at one place- check Here
  7. Our all articles at one place?





Download Revision Test Papers for CA IPCC Nov 2014 | RTP

Download Revision Test Papers for CA IPCC Nov 2014 | RTP

You can easily download all the revision test papers (RTPs) for CA IPCC November 2014 exams at free of cost in pdf format. Just click the following links.


IPCC Nov 2014 RTP - Revision Test Papers

Group - 1:
  1. Accounting
  2. Business Laws, Ethics and Communication
  3. Costing and FM
  4. Taxation

Group - 2:
  1. Advanced Accounting
  2. Auditing and Assurance
  3. IT and SM

Recommended Posts:
  1. Check out the Amendment & Notes for IPCC - Nov 2014 Exams Here
  2. 10 Rules to pass CA / CS / CWA Exams  Here
  3. How to Pass Costing/ FM paper of IPCC? Take a look
  4. Download Companies Act 2013 Notes (Chapter wise) from Here
  5. How to Pass CA Exams Here
  6. All articles which is relevant to November 2014 exams at one place- check Here
  7. Our all articles at one place?




Friday, August 29, 2014
Amendments in Auditing for CA IPCC Nov 2014 - Companies Act 2013

Amendments in Auditing for CA IPCC Nov 2014 - Companies Act 2013

Amendments in Audit for CA IPCC Nov 2014 Exams (as per companies act 2013)
As we all know after the application of Companies Act, 2013, syllabus is changed in our academic textbooks. Law.. Accounts... Audit... everything is affected from this new act. So, our institute take a good step in the interest of students toward the updation in their study materials. This is the academic update as per the amended syllabus of Auditing & Assurance of IPCC which is issued by I.C.A.I..

Related Post: All amendments for CA IPCC November 2014 Exams are at one place:

amendments-in-auditing-nov-2014-ipcc


PAPER – 6: AUDITING AND ASSURANCE
PART – I : ACADEMIC UPDATE
(Legislative Amendments as per the Companies Act, 2013)

1) Payments controlled by the Companies Act, 2013:
a) Under section 180, the Board of Directors of a company except with the consent of the company by a special resolution exercises the following powers.
i) to sell, lease or otherwise dispose of the whole or substantially the whole of the undertaking of the company or where the company owns more than one undertaking, of the whole or substantially the whole of any of such undertakings.
ii) to invest otherwise in trust securities the amount of compensation received by it as a result of any merger or amalgamation;
iii) to borrow money, where the money to be borrowed, together with the money already borrowed by the company will exceed aggregate of its paid-up share capital and free reserves, apart from temporary loans obtained from the company’s bankers in the ordinary course of business:
Provided that the acceptance by a banking company, in the ordinary course of its business, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise, shall not be deemed to be a borrowing of monies by the banking company within the meaning of this clause.
iv) to remit, or give time for the repayment of, any debt due from a director.
b) Under section 181, the Board of Directors of a company can contribute to the bonafide charitable and other funds any amount in any financial year. Prior permission of the company in general meeting is required in case if the aggregate of such contribution exceeds 5% of its average net profits for the three immediately preceding financial years.
c) Section 182 deals with prohibition and restriction regarding political contributions. According to this section, a government company or any other company which has been in existence for less than three financial years cannot contribute any amount directly or indirectly to any political party. In other cases, contribution in any financial year should not exceed 7½ % of average net profits during the three immediately preceding financial years.
d) Section 183 permits the Board and other person to make contributions to the National Defence Fund or any other Fund approved by the Central Government for the purpose of National Defence to any extent as it thinks fit. 

2) Allotment of shares and receipt of Allotment: (Section 39 of the Companies Act, 2013)
i) Director’s Minutes Book to verify approval of allotments.
ii) Compare copies of letters of allotment with entries in the Application and Allotment Book.
iii) Trace entries in the Cash book into the Application and Allotment Book for the verification of amounts collected on allotment.
iv) Trace the amount collected on application as well as those on allotment from the Application and Allotment Book into the Share Register.
v) Check whether the amount stated in the prospectus as the minimum amount has been subscribed and the sums payable on such application have been received by the company.
vi) Check that the amount payable on the application on every security is not less than five percent of the nominal amount of security or such other percentage or amount as may be prescribed by the SEBI.
vii) If the stated minimum amount has not been subscribed and the sum payable on subscription is not received within a period of thirty days from the date of issue of the prospectus or such period as my be specified by the SEBI, check that the amount received above is returned within a period of fifteen days from the closure of the issue and if in case the amount is not repaid within such period, the directors in default shall jointly and severally be liable to repay that amount with interest at the rate of fifteen percent per annum.
viii) Check totals of amounts payable on allotment and verify the journal entry debiting Share Allotment Account and crediting Share Capital Account. 

3) Prohibition for buy back in certain circumstances : Section 70 of the Companies Act, 2013.
i) No company shall directly or indirectly purchase its own shares or other specified securities—
(a) through any subsidiary company including its own subsidiary companies; or
(b) through any investment company or group of investment companies; or
(c) if a default, by the company, in repayment of deposit or interest payable thereon, redemption of debentures or preference shares or payment of dividend to any shareholder or repayment of any term loan or interest payable thereon to any financial institutions or bank, is subsisting. Provided that the buy – back is not prohibited if the default is remedied and a period of three years has elapsed since the cessation of the default.
ii) No company shall directly or indirectly purchase its owns of Sections 92,123, 127 and 129. Section 92 relates to the filing of Annual Return, Section 123 and 127 to declaration and payment of dividend and Section 129 to the financial statement of the company. 

4) Central Government to prescribe Accounting Standards (Section 133 of the Companies Act, 2013):
Section 133 of the Companies Act, 2013 provides the provisions for Central Government to prescribe accounting standards. According to section 133 of the Companies Act, 2013: “Accounting Standards” means the standards of accounting or any addendum thereto as recommended by the Institute of Chartered Accountants of India (ICAI) constituted under section 3 of the Chartered Accountants Act, 1949, as may be prescribed by the Central Government in consultation with and after examination of the recommendations made by the National Financial Reporting Authority constituted under section 132 of the Companies Act, 2013.
In respect of accounting standards, the role of National Financial Reporting Authority is limited to advise the Central Government on the accounting standards recommended by ICAI for adoption by companies. The Ministry of Corporate Affairs (MCA) vide General Circular No. 15/2013 dated 13th September, 2013 has clarified that till the Standards of Accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. 

5) Payment of Dividend in proportion to amount paid-up (Section 51 of the Companies Act, 2013):
A company, if so authorised by its Articles, may pay dividend in proportion to the amount paid-up on each share.

You can download these amendments in PDF format, with clicking here.
Monday, August 25, 2014
Amendments for CA IPCC November 2014 Exams - Accounts, Tax, Law, IT

Amendments for CA IPCC November 2014 Exams - Accounts, Tax, Law, IT

After giving you changes in the paper of Information Technology and Strategic Management, now I'm here providing you the amendments which are applicable in CA IPCC November 2014 Exams.
These amendments are provided by the ICAI.


Applicability of Standards/Guidance Notes/Legislative Amendments etc. for November, 2014 – (CA IPCC) Intermediate (IPC) Examination
Amendments for syllabus of IT Paper 1: Accounting
Accounting Standards
AS 1 : Disclosure of Accounting Policies
AS 2 : Valuation of Inventories
AS 3 : Cash Flow Statements
AS 6 : Depreciation Accounting
AS 7 : Construction Contracts (Revised 2002)
AS 9 : Revenue Recognition
AS 10 : Accounting for Fixed Assets
AS 13 : Accounting for Investments
AS 14 : Accounting for Amalgamations

Paper 5: Advanced Accounting
Accounting Standards
AS 4 : Contingencies and Events occurring after the Balance Sheet Date
AS 5 : Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
AS 11 : The Effects of Changes in Foreign Exchange Rates (Revised 2003)
AS 12 : Accounting for Government Grants
AS 16 : Borrowing Costs
AS 19 : Leases
AS 20 : Earnings Per Share
AS 26 : Intangible Assets
AS 29 : Provisions, Contingent Liabilities and Contingent Assets.
Non-Applicability of Ind AS's for November, 2014 Examination
The MCA has hosted on its website 35 Indian Accounting Standards (Ind AS) without announcing the applicability date. Students may note that these Ind ASs are not applicable for November, 2014 Examination.
A. Applicable for November, 2014 examination
(i) Revision in the Criteria for classifying Level II Non-Corporate Entities
Due to recent changes in the enhancement of tax audit limit, the Council of the ICAI has recently decided to change the 1st criteria of Level II Non-Corporate Entities i.e. determination of SME on turnover basis from ` 40 lakhs to ` 1 Crore vide announcement “Revision in the Criteria for classifying Level II Non-Corporate Entities” issued by ICAI on 7th March, 2013. This revision is applicable with effect from the accounting year commencing on or after April 1, 2012.
(ii) Section 24 of the Banking Regulation Act, 1949 Maintenance of Statutory Liquidity Ratio (SLR) - Local Area Banks
In exercise of the powers conferred by sub-section (2A) of Section 24 of Banking Regulation Act, 1949 (10 of 1949) as amended from time to time, RBI vide notification DBOD.No.Ret.BC.48 /12.02.001/2012-13 dated September 28, 2012 has decided that Statutory Liquidity Ratio for Local Area Banks be reduced from 25 per cent to 23 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning August 11, 2012.
(iii) Maintenance of Cash Reserve Ratio (CRR)
Reserve Bank of India has decided to reduce the Cash Reserve Ratio (CRR) of Scheduled Commercial Banks by 25 basis points from 4.25 per cent to 4.00 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning February 09, 2013 vide circular DBOD.No.Ret.BC.76 /12.01.001/2012-13 dated January 29, 2013. The Local Area Banks shall also maintain CRR at 3.00 percent of its net demand and time liabilities up to February 08, 2013 and 4.00 per cent of its net demand and time liabilities from the fortnight beginning from February 09, 2013.
(iv) Buy Back of Securities (Amendment) Regulations, 2013
In exercise of the powers conferred under section 30 of the Securities and Exchange Board of India Act, 1992 read with clause (f) of sub-section (2) of Section 77A of the Companies Act, 1956 SEBI made Securities and Exchange Board of India (Buy-back of Securities) (Amendment) Regulations, 2013 to amend the Securities and Exchange Board of India (Buy back of Securities) Regulations, 1998. The important provisions of the new regulations are:
  • No offer of buy-back for fifteen per cent or more of the paid up capital and free reserves of the company shall be made from the open market.
  • A company shall not make any offer of buy-back within a period of one year reckoned from the date of closure of the preceding offer of buy-back, if any.
  • The company shall ensure that at least fifty per cent of the amount earmarked for buy-back is utilized for buying-back shares or other specified securities.

B. Not applicable for November, 2014 examination
Ind ASs issued by the Ministry of Corporate Affairs
The MCA has hosted on its website 35 converged Indian Accounting Standards (Ind AS) without announcing the applicability date. These are the standards which are being converged by eliminating the differences of the Indian Accounting Standards vis-à-vis IFRS. These Ind ASs are not applicable for the students appearing in November, 2014 Examination.

Paper 2: Business Laws, Ethics and Communication
The Companies Act, 2013
The 53 sections of the Companies Act, 2013 along with the clarifications notified by the Ministry of Corporate Affairs.  Supplementary study material in this regard has been hosted on the student portal, ICAI at the following link http://220.227.161.86/32794ssp-p2blec-ipcc.pdf

Non-Applicability of the following /Circulars/Notifications

1. *New 184 sections of the Companies Act, 2013 notified on 27th February, 2014 and 26th March, 2014.
2. *Rules notified under the Companies Act, 2013

Paper 4: Taxation
Applicability of the Finance Act, Assessment Year etc. for November, 2014 examination The provisions of income-tax and indirect tax laws, as amended by the Finance Act, 2013, including circulars and notifications issued upto 30th April, 2014. The relevant assessment year for income-tax is A.Y. 2014-15.

Paper 6: Auditing and Assurance
Check Here- All the amendments syllabus) due to Companies Act, 2013
I. Standards on Auditing (SAs)
  1. SA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing
  2. SA 210 Agreeing the Terms of Audit Engagements
  3. SA 220 Quality Control for Audit of Financial Statements
  4. SA 230 Audit Documentation
  5. SA 240 The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements
  6. SA 250 Consideration of Laws and Regulations in An Audit of Financial Statements
  7. SA 260 Communication with Those Charged with Governance
  8. SA 265 Communicating Deficiencies in Internal Control to Those Charged with
  9. Governance and Management
  10. SA 299 Responsibility of Joint Auditors
  11. SA 300 Planning an Audit of Financial Statements
  12. SA 315 Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
  13. SA 320 Materiality in Planning and Performing an Audit
  14. SA 330 The Auditor’s Responses to Assessed Risks
  15. SA 402 Audit Considerations Relating to an Entity Using a Service Organization
  16. SA 450 Evaluation of Misstatements Identified during the Audits
  17. SA 500 Audit Evidence
  18. SA 501 Audit Evidence - Specific Considerations for Selected Items
  19. SA 505 External Confirmations
  20. SA 510 Initial Audit Engagements-Opening Balances
  21. SA 520 Analytical Procedures
  22. SA 530 Audit Sampling
  23. SA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
  24. SA 550 Related Parties
  25. SA 560 Subsequent Events
  26. SA 570 Going Concern
  27. SA 580 Written Representations
  28. SA 600 Using the Work of Another Auditor
  29. SA 610 Using the Work of Internal Auditors
  30. SA 620 Using the Work of an Auditor’s Expert
  31. SA 700 Forming an Opinion and Reporting on Financial Statements
  32. SA 705 Modifications to the Opinion in the Independent Auditor’s Report
  33. SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
  34. SA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements
  35. SA 720 The Auditor’s Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements

II. Statements
  1. Statement on Reporting under Section 227(1A) of the Companies Act, 1956.
  2. Statement on the Companies (Auditor’s Report) Order, 2003.
III. Guidance Notes
  1. Guidance Note on Audit of Inventories.
  2. Guidance Note on Audit of Debtors, Loans and Advances.
  3. Guidance Note on Audit of Investments.
  4. Guidance Note on Audit of Miscellaneous Expenditure.
  5. Guidance Note on Audit of Cash and Bank Balances.
  6. Guidance Note on Audit of Liabilities.
  7. Guidance Note on Audit of Revenue.
  8. 8. Guidance Note on Audit of Expenses.
Paper 7: Information Technology and Strategic Management (IT/SM)
The syllabus of Paper-7 of the IPCC Syllabus, i.e Information Technology has been changed. Certain topics from the old syllabus have been excluded and few new topics were inserted. You can check here the New Chapters which are applicable for November 2014 IPCC Exams: Amendments for syllabus of IT


Sunday, August 24, 2014
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Amendments for syllabus of IT

The syllabus of Paper-7 of the IPCC Syllabus, i.e Information Technology has been changed. Certain topics from the old syllabus have been excluded and few new topics were inserted. The New Chapters that are applicable for November 2014 IPCC Exams are listed below: 
  1. Business Process Management & IT 
  2. Information Systems and IT Fundamentals 
  3. Telecommunication and Networks 
  4. Business Information Systems 
  5. Business process automation through Application software

You can check here, all the amendments relevant for November 2014 exams:
Saturday, August 23, 2014
Changes in New Tax Audit Report Utility- AY 2014-15 (Help Guide)

Changes in New Tax Audit Report Utility- AY 2014-15 (Help Guide)

CBDT via Notification No. 33 dated 25th July 2014, had made some changes in Form 3CA, 3CB and 3CD. Via these changes the compliance which a CA is required to ensure and disclosures which are required to be made by a Chartered Accountants has been increased. An effort has been made to compile and put in place all additions for the benefit of readers. Listed below are the modifications/ additions made in this notification. 

FORM 3CA
  1. Now we have to mention the period for which profit & loss account/ Income and expenditure account has been prepared. This assumes are important if accounts are prepared for more than or less than 12 months.
  2. In the opinion part, now apart from mentioning that particulars in Form 3CD give a true and correct view we also have to mention our observations/ qualifications if any. 

FORM 3CB
Changes made are similar to that in Form 3CA as mentioned above. 


FORM 3CD
The first thing which comes to notice in Form 3CD is that it now has 41 clauses as against 32 clauses prior to this notification. The key changes made in Form 3CD are addition of some new clauses thereby requiring more disclosures and doing away with certification by client/ auditee. Listed below are the key modifications/ additions made in Form 3CD.

PART A
  1. Now we have to mention whether the assessee is liable to pay Indirect tax like excise duty, service tax, sales tax, custom duty etc and furnish the registration number for the same.
  2. Mention the clause under which the audit has been conducted.

PART B
  1. Earlier we were only required to mention a list of books of account maintained; now we also have to mention the address at which the books of accounts are kept. Further if books of accounts are not kept at one location, we need to furnish the addresses of locations along with the details of books maintained at each location.
  2. Apart from mentioning the list of books examined we also have to mention the nature of relevant documents examined.
  3. For reporting the effect in profit and loss due to change in method of accounting or method of valuation a format has been prescribed.
  4. A new clause has been added whereby details of property along with consideration received or accrued and value adopted or assessed is to be furnished/ disclosed, where any land or building or both is transferred during the P.Y for a consideration less than the value adopted or assessed or assessable by any authority referred to in Sec 43CA or Sec 50C.
  5. Additional disclosures required under clause 19 erstwhile clause 15 for sec 32AC, 35(2AA), 35(2AB), 35AD,35CCC and 35CCD
  6. Disclosures to be made on whether during the previous year the assessee has received any property, being share of a company not being a company in which public are substantially interested, without consideration or for inadequate consideration as referred to in Sec 56(2) (viia).
  7. Disclosures to be made on whether during the previous year the assessee received any consideration for issue of shares which exceeds the fair market value of the shares as referred to in sec 56(2) (viib).
  8. Disclosures on whether the assesse has incurred any speculation loss referred to in Sec73 during the previous year.
  9. Disclosure on whether the assesse has incurred any loss referred to in sec 73A in respect of any specified business during the previous year.
  10. To be report whether the company is deemed to be carrying on a speculation business as referred in explanation to Sec 73.
  11. Apart from reporting on the Tax deducted & remittance as per provision of chapter XVII-B or XVII-BB, we also have to report TDS & TCS returns are submitted on time or not and whether the assesse is liable to pay interest under sec 201(1A) or sec 206C(7).
  12. While reporting on tax on distributed profits under sec 115-0 disclosure to be made for amount of reduction as referred to in Sec 115-O (1A) (i) & (ii).
  13. Disclosures on cost Audit to include disqualification or disagreement on any matter/ item/ value/ quantity as may be reported/ identified by the Cost Auditor. Earlier the requirement was to only state whether Cost Audit was carried out or not & to enclose copy of report.
  14. Similar disclosure to be made with respect to audit under Central excise Act as mentioned above.
  15. To be reported whether any audit was conducted under Sec 72A of the finance Act, 1994 in relation to valuation of taxable services, further disclosures to be made for any disqualification or disagreement on any matter/ item/ value/ quantity as may be reported/ identified by the auditor.
  16. Details of demand raised or refund issued during the previous year under any tax laws other than IT Act 1961 & Wealth Tax Act 1957 along with details of relevant proceeding.
The above mentioned modifications increases the responsibilities of the Chartered Accountants while performing the Tax Audit, as the Auditor has to ensure more compliance than earlier. The disclosure requirements were also increased substantially, and the auditor can no longer just rely on the certification received from the client, as the amendment requires specific disclosures to made in respect of items for which earlier auditor were just required to obtain a certificate.

Source: Taxguru.com

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