Some of the frequently asked exam questions on audit of limited companies are as follows: Q.1. Indicate the Important points to be considered if you are appointed: (a) As the First Auditor, (b) as the Auditor in place of the Retiring Auditor, and (c) as the Auditor through an order of the Government. Ans. (a) As the First Auditor: The [...]
Some of the most frequently asked questions on valuation of assets and liabilities of a company are as follows: Q.1. Examine the Factors that Effects the Valuation of Goodwill. Ans. The factors affecting goodwill valuation are: 1. Profitability: One who pays for goodwill looks to the future profits. The future profits which depend on a variety of factors (such as, [...]
Some of the most frequently asked exam questions on auditing for dividends and divisible profits are as follows: Q.1. Define and explain the term 'Divisible Profits'. Ans. These refer to that portion of profits (i.e., the excess of income over expenditure including provision for taxes and depreciation) which are available for distribution as dividend to the shareholders of the company. [...]