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Tuesday, August 11, 2009

Think before you conclude..............

  1. What is "Deferred Revenue"?
  2. What is "Due Audit Care"?
  3. A tax auditor cannot be a statutory auditor and vice versa. Explain.
  4. Difference between "Material Fact" and "Material Misstatement".
  5. Difference between "Solicitation" and "Advertisement".


  1. i) Deferred Revenue is that revenue that is received in advance of earning the income. It is considered as a liability initially but becomes an asset over the normal course of operation.

    ii)Due Audit care is the reasonable care exercised by the auditor in compliance of standards before and while conducting an audit like knowledge of clients business, review from previous auditors etc.

    iii)A statutory auditor can be the Tax auditor as sec 44AB of Act, 1961 does not pose any restriction on this issue. Moreover two audits are conducted under different statues.

    Sir please answer all the parts or give reference in your book.

    Sir, in your July 20th blog on "imp topics for CA Final Auding" are they also relevant for nov,09 old scheme exams.

  2. For other parts see Clause 5 & 6 of Part I, Second Schedule and Clause 6 & 7 of Part I, First Schedule

    The important topics are applicable for November 2009 examination too

  3. sir what is posted for the answers of deffered revenue and due audit care are they correct. I have an doubt. please clarify