Objective : This course enables the students to develop awareness about corporate accounting with provisions of company act.
[1] Share Capital : [1] Issues of share for cash - pro rate allotment & calculation of arrears, Forfeiture of shares, Re-issues of shares. [2] Issues of shares to vendor, Issue of shares to promoters. [3] Issue of sweat equity shares. [4] Sub division and consolidation of shares. [5] Bonus issue.
[2] [A] Accounting for debenture : [1] Accounting for issue of debenture. [2] Treatment of discount on issue of debenture. [3] Redemption of debenture and sinking fund for redemption. [4] Redemption of debenture by purchase from open market. [5] Conversion of debentures into shares. [B] Redemption of preference shares and Buy back of shares. [1] Accounting treatment (fully paid, partly called, fully called but partly paid). [2] Calculation of minimum fresh issue to comply with section 80. [3] Minimum fresh issue to provide funds for redemption. [4] Buy-back of equity shares.
[3] Final Accounts : [1] excluding computation of managerial, remuneration, disposal of profit and pre incorporation profit.
[4] Accounting for amalgamation and internal reconstruction : (excluding inter - company holding) as per IAS 14. [1] Purchase consideration and Accounting treatment. [2] Dissenting share holder. [3] External reconstruction. [4] Internal reconstruction (excluding preparation of scheme)
[5] Consolidated balance sheet of holding company with one subsidiary company only - Simple examples only (excluding cross holding and chain holding).
[6] Valuation of goodwill and shares.
Reference Books : 1. Sehgal Ashok, Sehgal Deepak : Advanced Accounting : Taxmann. 2. Tulsian : Advanced accountancy : TMH. 3. Mukherjee & Hanif : Modern Accountancy : TMH. 4. Gupta R.L. & Radhaswamy : Financial Accounting : S. Chand.
Objective : This course aims at imparting knowledge about the principles and methods of auditing and their application.
[1] Introduction to Auditing : [a] Fundamentals of auditing : [1] Meaning and definitions of financial auditing. [2] Objective of financial auditing. [3] Advantages and limitations of auditing. [4] Qualities of an auditor. [5] Postulates, concept, standards, procedure & techniques of modern financial auditing. [6] Auditing as synoptic discipline. [7] Concept of evidence in auditing. [b] Types of audit : [1] Classification on the basis of organization structure. [2] Classification on the basis of authority. [3] Classification on the basis of timing. [4] Classification on the basis of scope. [5] Classification on the basis of objective. - Internal audit. - Cost audit. - Management audit. - Tax audit. - Secretarial audit. - Social audit. - Environment audit.
[2] Audit planning and internal control system : [a] Preparation and procedure of audit : [1] Commencement of a new audit. [2] Overall audit plan. [3] Client's preparation for the auditor. [4] Audit program. [5] Audit notebook and audit working paper. [6] Ownership of audit working paper. [7] Procedure of audit. [b] Internal control system : [1] Meaning and nature of internal control system. [2] Objectives of internal control system. [3] Limitations of internal control. [4] Internal control system, internal check and internal audit. [5] Internal control system and the auditor. [6] Internal control system with regards to following area as a case study. - Cash receipts and payments. - Purchase of inventory.
[3] Vouching and Verification : [a] Vouching : [1] Meaning and definition of vouching. [2] Objects and importance of vouching. [3] Vouching of sales transaction. [4] Vouching of purchase transactions. [5] Vouching of cash receipts / incomes. [6] Vouching of cash payments / expenses. [7] Vouching of ledger. Note : [3] to [7] pertaining to proprietary & partnership firm only. [b] Verification : [1] Meaning and definition of verification. [2] Objects of verification. [3] Vouching, verification & valuation. [4] Verification of current assets. [5] Verification of fixed assets. [6] Verification of liabilities. [7] Verification of intangible assets. [8] Auditor's duty regards to valuation of assets. Note : [4] to [8] pertaining to proprietary & partnership firm only.
[4] Company Audit : [a] Company auditor : [1] Eligibility for appointment of an auditor. [2] Disqualifications of an auditor. [3] Appointment of auditors. [4] Compulsory re-appointment. [5] Ceiling on number of audits. [6] Remuneration of auditors. [7] Removal of auditor. [8] Rights and powers of auditors. [9] Duties of an auditor.
[5] [a] Company audit : [1] Audit of share capital and debentures. [2] Auditor's duties with regards to payment of dividends. [3] Auditor's duties as regards depreciation, reserve, provision and secret reserve. [4] Audit report, certificate vs. report, true and fair view. [5] Liabilities of auditors. - Civil liability for negligence and misfeasance towards client and third parties. - Liability under the company act and income tax act. - Criminal liability of an auditor. [b] Specialized audits : [1] Cost audit : meaning, objectives and importance. [2] Management audit : meaning, process and importance. [3] Tax audit : u/s 44 AB only.
[6] [a] Specific audit programs : [1] Audit of hospital run by a charitable trust. [2] Audit of educational institution. [3] Audit of banks [4] Audit of partnership firm. [5] Audit of insurance companies. [b] Investigation : [1] Meaning of investigation. [2] Distinction between audit and investigation. [3] Type of investigation. - To purchase a running business. - When fraud is suspected. - Under the company act 1956. - On behalf of a lender to grant a loan.
Reference Books : 1. Gupta Kamal : Contemporary auditing; TMH. 2. Aruna Jha : Students' guide to auditing : Taxmann. 3. V.K. Batra & K.L. Bagaradiya : Text book of auditing : TMH. 4. Ravi M. Kishore : Cost accounting : Taxmann. 5. Jawahar Lal : Cost accounting : TMH. 6. Tulsian P.C. : Practical costing; Vikas.