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Thank you very much. It does make sense now. I thought that this adjustment was a cash adjustment but this is just a non-cash movement as you wrote above. Thank you again.
Thank you for your reply. My question is why the new shares aren’t issued in a bigger price? Thank you
The you very much sir. I just got confused with the wording in the definition of not paid etc.
Thank you so much. What do companies use nowadays in the UK if not day books?
Hello sir,
thank you very much for your reply. My question is about the bank account. I mean that the column of the bank in the cash book, if it is updated correctly, should be equal to the bank account, or not? If this is true, then why should I not reconcile the bank statement with the bank account and then go back and correct the cash book? Sorry for asking again, I just don’t get it. Thank you very much again.Thank you sir. Can the management be board members or they are just appointed by the board members or both? Thank you again.
Thank you very much. It has a diagram and in the centre of all these threats is only the objectivity but I totally agree with you as it was bizarre to me what the book illustrates. Thank you again,
Thank you, sir. Can also the board of directors not participate in the management of the company (so all would be NEDs) and appoint other employees as managers?
Thank you, sir. If the misstatement or misstatements are not material should the auditor seek from the management to amend them in order to the FS be more accurate or there is no reason to do that and should leave these immaterial misstatements as they are? Thank you for your precious help.
UK Taxes
1) Personal Tax
a) Income Tax
i) Employment Income
ii) Self-employment Income
iii) Trading profit
b) Investment Income tax
i) Interest Income
ii) Divident Income
iii) Property Income
c) NIC’s
i) Employment or self-employment income
1. Employee’s NIC’s
2. Employer’s NIC’s
3. Self-employed NIC’s
d) Inheritance Tax
e) Chargeable Gains Income tax
2) Corporate Tax
Single companies or Group of companies
a) Tax on WW income and gains-Taxable total profit
i) Trading Income
ii) Property Income
iii) Interest Income
iv) Chargeable Gains Income
b) VATHello again sir. Can shareholders be NED’s for an audit committee and if not why not? Thank you very much.
There is also an example in BPP which says:
The draft financial statements show a profit before tax of $2·4 million, revenue of $10·1 million and inventory of $510,000.
Alternative procedures performed as Chestnut & Co was unable to attend the inventory count were unable to provide sufficient appropriate audit evidence regarding the inventory balance in the statement of financial position.
Which of the following options correctly summarises the impact of the inventory issue on the auditor’s report?
Qualified
Basis for qualified opinionDisclaimer
Basis for disclaimer of opinionQualified
Key audit matters sectionDisclaimer
Emphasis of matterAnd the correct answer is according to BPP:
Qualified
Basis for qualified opinionExplanation: The auditor will need to express a modified opinion as they are unable to obtain sufficient appropriate evidence in relation to inventory. The effect of this is material but not pervasive. Therefore a qualified ‘except for’ opinion will be required.
The opinion paragraph will explain that the audit opinion is qualified ‘except for’. A basis for qualified opinion paragraph will be required to explain the limitation in relation to the lack of evidence over inventory.Why inventory/profit before tax=21,25% in not pervasive???
I am thinking now that we are not going to be charged with taxes because what is profit for one division is an expense for the other, so the overall profit for the company will be 0. But still, don’t understand why one division must put markup profit on cost for transferring goods to another division.
Don’t we want the detection risk to be low in order to have the total audit risk low? Doesn’t that mean that we want the risk of detection to decrease?
