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Strategic orientation
Vision Statement
To be the most highly respected professional firm in the region where clients come for the peace of
mind that their interests are being cared for by a team that enjoys working with them and one
another
Mission Statement
To provide businesses, entrepreneurs and individuals with the highest quality accounting,
auditing, tax planning and business advisory services delivered in a timely, efficient and
innovative manner by a professional team that clearly enjoys working together to exceed
their clients' needs.
5.3. Objectives
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Our main objective is to be the best certified public accounting firm in the areas where we compete.
We strive to help our clients strengthen their operational efficiency and increase their profits. To
accomplish this, we dedicate ourselves to the following four principles:
Quality Services
We attempt to hire only competent individuals and evaluate them regularly. We offer competitive
compensation, ongoing training, and several opportunities for advancement through specialization
in the services we provide to clients.
Timely Services
Our team members must meet deadlines without sacrificing quality.
Growth
We work to expand the Firm, both in size and in the range of services we offer. As we become skilled
in new areas, we are able to recommend additional services to existing, as well as prospective,
clients.
Personal Fulfillment
We hire individuals who are self-starters and whose personalities complement others in the Firm, thus
creating an environment where each person can develop his or her career potential at whatever
pace he or she chooses.
1 Registration No.
2 Name of the Company
3 Form A made up to
(Day/Month/Year)
4 Date of AGM
(Day/Month/Year)
PART-A
6 Email Address:
7 Office Tel. No.:
8 Office Fax No.:
9 Nature of Business:
20. List of members & debenture holders on the date upto which this Form A is made
Folio Name Address Nation- No. of NIC (Passport No. if foreigner)
ali sh
ty ar
es
Members
Debenture
holders
Separate sheet, if necessary
Debenture holders
I certify that this return and the accompanying statements state the facts correctly and completely as on
the date up to which this Form-A is made
Deferred tax
A deferred tax liability is an account on a company's balance sheet that is a result of temporary
differences between the company's accounting and tax carrying values, the anticipated and
enacted income tax rate, and estimated taxes payable for the current year. This liability may be
realized during any given year, which makes the deferred status appropriate.
Because there are differences between what a company can deduct for tax and accounting purposes,
there is a difference between a company's taxable income and income before tax. A deferred tax
liability records the fact the company will, in the future, pay more income tax because of a
transaction that took place during the current period, such as an installment sale receivable
Short Term Borrowing
Short-term debt is an account shown in the current liabilities portion of a company's balance sheet.
This account is made up of any debt incurred by a company that is due within one year. The debt
in this liabilities account is usually made up of short-term bank loans taken out by a company,
among other types.
Examples:
Short-term bank loans
These loans often arise when a company sees an immediate need for operating cash. ...
Accounts payable.
This refers to money owed to suppliers or providers of services. ...
Wages. These are payments due to employees.
Lease payments. ...
Income taxes payable
Inappropriate loss
Balance sheet working paper
Working papers are used to document the information gathered during an audit. These working
papers provide evidence that sufficient information was obtained by an auditor to support his or
her opinion regarding the underlying financial statements
Lead Schedule (Head of lead Schedule)
A document that serves as a summary or index of information contained in specific accounting
schedules, balances sheets, or reports. The information contained within the lead schedule is
cross-referenced to the information found on the specific reports. This simplifies the
reconciliation process during an audit.
Top page
Total information related the account Decreasing or increasing.
Summary page
Use the audit summary as the starting point for a analysis of an audit.
Movement detail
If your company records its inventory as an asset, and it undergoes an annual audit, then the
auditors will be conducting an audit of your inventory. Given the massive size of some
inventories, they may engage in quite a large number of inventory audit procedures before
they are comfortable that the valuation you have stated for the inventory asset is reasonable.
Here are some of the inventory audit procedures that they may follow:
Cutoff analysis.
The auditors will examine your procedures for halting any further receiving into the warehouse or
shipments from it at the time of the physical inventory count, so that extraneous inventory
items are excluded. They typically test the last few receiving and shipping transactions prior
to the physical count, as well as transactions immediately following it, to see if you are
properly accounting for them.
Overhead analysis
If you apply overhead costs to the inventory valuation, then the auditors will verify that you are
consistently using the same general ledger accounts as the source for your overhead costs,
whether overhead includes any abnormal costs (which should be charged to expense as
incurred), and test the validity and consistency of the method you use to apply overhead costs
to inventory.
Work-in-process testing
If you have a significant amount of work-in-process (WIP) inventory, the auditors will test how
you determine a percentage of completion for WIP items.
Inventory allowances
The auditors will determine whether the amounts you have recorded as allowances for obsolete
inventory or scrap are adequate, based on your procedures for doing so, historical patterns,
where used reports, and reports of inventory usage (as well as by physical observation during
the physical count). If you do not have such allowances, they may require you to create them.
Inventory ownership
The auditors will review purchase records to ensure that the inventory in your warehouse is
actually owned by the company (as opposed to customer-owned inventory or inventory on
consignment from suppliers).
Inventory layers
If you are using a FIFO or LIFO inventory valuation system, the auditors will test the inventory
layers that you have recorded to verify that they are valid.
If the company uses cycle counts instead of a physical count, the auditors can still use the
procedures related to a physical count. They simply do so during one or more cycle counts,
and can do so at any time; there is no need to only observe a cycle count that occurs at the
end of the reporting period. Their tests may also evaluate the frequency of cycle counts, as
well as the quality of the investigations conducted by counters into any variances found.
The extent of the procedures employed will decline if inventory constitutes a relatively small
proportion of the assets listed on a company's balance sheet.
Vouching Sheet
Vouching of Impersonal Ledger. It is an important part of the auditor's, duty to vouch the impersonal
ledger which contains accounts from which trading and profit and loss accounts and the
balance sheet are prepared. The impersonal ledger has two kinds of accounts -Nominal accounts
& real accounts.
Supporting
Audit documentation is the written record of the basis for the auditor’s conclusions that provides
the support for the auditor's representations, whether those representations are contained in
the auditor's report or otherwise.
Personnel costs
Employment contracts (or other independent/legal justification of personnel costs claimed) - Ledgers /
accounts, payroll records - Time sheets - Detailed breakdown and justification of the productive
hours denominator used for calculation of hourly rates (personnel and overhead)
Overheads costs
Full documentation concerning the calculation of the overhead costs and the back-up documentation
thereto - Analysis, reconciliation and summary of final breakdown of overhead costs (by category
of expense) charged to the project(s) subject to audit
Equipment / Consumables
Invoices - Proof of payment - In case of rented equipment: Rental contract, inventory list of the rented
equipment; proof of the investment values of the rented equipment - Records concerning
computer usage, if applicable
Bank Statements
In case you are coordinator of the contract(s) bank statements relating to the payments of EC
contribution, and the distribution to the contract partners
Auditor certificates
Copies of any auditor certification statements issued with a claim for cost reimbursement Ledge
the ledger provides a complete record of financial transactions over the life of the company.
The ledger holds account information that is needed to prepare financial statements and includes
accounts for assets, liabilities, owners' equity, revenues and expenses.
Tax Calculation
Input tax
Input VAT is the value added tax added to the price when you purchase goods or services that are
liable to VAT. If the person or businesses that is buying is registered for VAT they can deduct the
amount of VAT paid from his/her settlement with the tax authorities.
Output tax
Ad valorem tax charged on the selling price of taxable goods or services, and is payable by the
customer. Value added tax (VAT) charged by businesses is an output tax that is distinguished from
the VAT paid by them, which is their input tax.
Tax evasion
Tax evasion is an illegal practice where a person, organization or corporation intentionally avoids
paying his true tax liability. Those caught evading taxes are generally subject to criminal charges
and substantial penalties. To willfully fail to pay taxes is a federal offense under the Internal
Revenue Service (IRS) tax code.
Sales Reconciliation
Reconciliation is an accounting process that uses two sets of records to ensure figures are correct and
in agreement. It confirms whether the money leaving an account matches the amount that's been
spent, ensuring the two are balanced at the end of the recording period. The purpose of
reconciliation is to provide consistency and accuracy in financial accounts.
Purchase verification
Vouching is a technical term, which refers to the inspection of documentary evidence supporting and
substantiating a transaction, by an auditor. It is the essence of Auditing It is the practice followed
in an audit, with the objective of establishing the authenticity of the transactions recorded in the
primary books of account.
It essentially consists of verifying a transaction recorded in the books of account with the relevant
documentary evidence and the authority on the basis of which the entry has been made; also
confirming that the amount mentioned in the voucher has been posted to an appropriate account
which would disclose the nature of the transaction on its inclusion in the final statements of
account. Vouching does not include valuation.
Control Sheet
Internal control, as defined in accounting and auditing, is a process for assuring achievement of an
organization's objectives in operational effectiveness and efficiency, reliable financial reporting,
and compliance with laws, regulations and policies Aging
Types of sampling
Statistical sampling
A statistical method provides an objective measure of risk, optimizes the sample size, and is best
for a population of a large number of homogeneous transactions. Sampling is the application
of auditing procedures to less than 100 percent of the population and the projection of
the sample results to the population.