ELEMENTS OF AUDITING AND TAXATION DIPLOMA IN COMMERCIAL PRACTICE 6TH SEMESTER

GOVERNMENT OF KARNATAKA

DEPARTMENT OF TECHNICAL EDUCATION

BOARD OF TECHNICAL EXAMINATIONS

DIPLOMA IN COMMERCIAL PRACTICE

VI SEMESTER

9CP62 - ELEMENTS OF AUDITING AND TAXATION (EOA&T)

 

Contact Hours per week = 5                                                                  Contact Hours per Semester = 80

PART – ‘A’

 

SYLLABUS OF ELEMENTS OF AUDITING – (60 MARKS)

1.     INTRODUCTION AND OVERVIEW OF AUDITING:

Definition – Meaning – Objects – Advantages – Limitations of Auditing – Meaning – Types of Errors and Frauds – Types of Audit.- Audit Planning – Audit Programme – Principles of Auditing – Techniques of Auditing. 

2.      INTERNAL CHECK AND VOUCHING:

Definition – Meaning – Objects – Features – Advantages – Limitations of Internal Check – Definition – Meaning – Objects of Internal Control – Essentials of Good Internal Control System – Internal Check versus Internal Control – Meaning – Objects – Merits – Limitations of Routine Checking – Definition – Meaning – Objects – Importance of Vouching – Procedure in Vouching – Vouching versus Routine Checking -  Definition – Meaning – Types of Voucher – Refusal of Voucher.

 

3.      VERIFICATION AND VALUATION OF ASSETS & LIABILITIES: 

 

Definition – Meaning – Objects of Verification – Verification versus Vouching – Definition – Meaning – Objects of Valuation – Mode of Valuation of certain Assets and Liabilities – Verification versus Valuation

 

4.      AUDIT OF LIMITED COMPANIES:

Need of Audit for Limited Companies – Qualities – Qualifications – Disqualifications of Auditors – Appointment – Remuneration – Removal of Auditors – Rights and Duties – Liabilities (Both Civil and Criminal) of Auditors.

PART – ‘B’

 

SYLLABUS OF TAXATION – (40 MARKS)

 

5.      INTRODUCTION AND OVERVIEW OF INCOME TAX:

 

Meaning – Nature – Importance of Income Tax - Basic Concepts – Total Income – Casual Income – Person Assessee – Assessment Year – Previous Year - Gross Total Income and Taxable Income. Residential Status of an Individual - Tax Liability - Income Exempted from Tax – Fully Exempted Income and Partially Exempted Income.

 

 

 

   6.    PROCESS OF COMPUTATION OF INCOME & TAX:

 

Meaning of Salary – Scope of Salary – Allowances – Perquisites – Profits in Lieu of Salary – Provident Fund – Kinds – Important Provisions – Allowable Deductions under the Head “Salary”  - Simple Problems on Calculation of Salary Income. – Income from House Property – Chargeability – Meaning of Annual Value – Allowable Deductions – Simple Problems on Calculation of Income from House Property – Preparation of Income Tax Statements (Involving Deductions under Chapter VI)

 

GENERAL OBJECTIVES

 

1.      To Make the Students familiar with the Basic Concepts of Auditing and Audit aspects of Business Accounts.

2.      To Enable the Students to understand the procedures of Auditing of Business Concerns.

3.      To describe the Nature and Scope of Auditing.

4.      To Explain the Basic Concepts of Audit Planning, Audit Programme and Internal Check.

5.      To describe the conduct of Vouching of Business Transactions and Valuation/Verification of certain Assets and Liabilities.

6.      To Explain the Role of Company Auditors in the Affairs of Limited Companies.

7.      To Explain the Basic Concepts of Total Income, Previous Year and Assessment Year.

8.      To describe the Rules relating to the determination of Residential Status and the Scope of Total Income.

9.      To Enable the Students to acquire the needed Skills in Computation of Total Income of Individuals (Excluding Income from Business) and the Filing of Returns by them.

                         

SPECIFIC OBJECTIVES

               

1.1. To Explain the Definition, Meaning, Objects, Advantages and Limitations of Auditing

1.2. To Explain the Meanings of Errors and Frauds and to describe the different types of

           Errors and Frauds.

1.3. To Identify different types of Audit and describe them briefly.

1.4. To Explain the Concept of Audit Planning and to identify the Steps involved in it.

1.5. To Explain the Concept of Audit Programme and to describe the preparation of Audit

           Programme.          

1.6. To Explain the Important Principles and Techniques of Auditing.

1.7. To Prepare Balance Sheet with Incorporating Entries relating to Issue of Shares.

 

2.1. To Explain the Definition, Meaning, Objects, Features, Advantages and Limitations of

          Internal Check.

2.2. To Explain the Definition, Meaning, Objects of Internal Control.

2.3. To Explain the Essentials of Good Internal Control System.

2.4. To Identify the different points of distinction between Internal Check and Internal Control.

2.5. To Explain the Meaning, Objects, Merits and Limitations of Routine Checking.

2.6. To Explain the Definition, Meaning, Objects and Importance of Vouching.

2.7. To Explain the Procedure to be followed in Vouching.

2.8. To Distinguish between Vouching and Routine Checking.

2.9. To Explain the Definition, Meaning, Types and Refusal of Voucher. 

              

3.1 To Explain the Definition, Meaning, Objects of Verification.

3.2 To Distinguish between Verification and Vouching.

3.3 To Explain the Definition, Meaning and the Objects of Valuation.

3.4 To Explain the Mode of Valuation of certain Assets and Liabilities.

3.5.To Distinguish Between Verification and Valuation.

 

4.1 To Explain the Need of Audit for Limited Companies.  

4.2 To Describe the Qualities and Qualifications to be possessed by the Auditors of Limited

      Companies.

4.3 To List out the Disqualifications of Auditors of Limited Companies.

4.5 To Explain the Appointment of First and Subsequent Auditors of Limited Companies.

4.6 To Explain the Provisions of Remuneration of Auditors of Limited Companies.

4.7.To Explain about the Removal of Auditors of Limited Companies.

4.8.To Explain the Rights and Duties of Auditors of Limited Companies.

4.9.To Explain the Liabilities (Civil and Criminal) of Auditors of Limited Companies.

 

5.1.To Explain the Meaning, Nature and Importance of Income Tax.   

5.2.To Explain the Basic Concepts as used in Income Tax.

5.3 To Explain briefly about Total Income, Casual Income, Person Assessee, Assessment Year,

      Previous Year, Gross Total Income and Taxable Income. 

5.5.To Explain the Provisions relating to Residential Status of an Individual briefly.

5.6.To Explain the Tax Liability of an Individual based on his Residential Status.

5.7.To Explain the Concept of Income Exempted Tax and to explain the provisions relating to

      Fully Exempted Income and Partially Exempted Income.

 

6.1. To Explain the Meaning of Salary and the Scope of Salary.

6.2. To Explain the different types of Allowances and their relevance.

6.3. To Explain the Provisions relating to Perquisites. 

6.5. To Explain about Profits in Lieu of Salary.

6.6. To Explain the Important Provisions relating to Provident Fund and to state kinds of

       Provident Fund.

6.7. To Solve simple problems on Computation of Income and Tax.

6.7. To Explain the Meaning of House Property and Calculation of Annual Value.

6.8. To Explain the Provisions Relating to Annual Value under different Circumstances.

6.9. To Explain the Provisions Applicable to Self Occupied and Let out Property.

6.10.To Explain about the Deduction U/S 24.

6.11.To Solve simple Problems on Income from House Property.

6.12.To Explain the Applicability of Sections 80C, 80CCC,80E and 80G.

6.13.To Explain about the Latest Tax Rates and the Concept of TDS.

6.14.To Solve Simple Problems on the Net Incomes of Different Heads, Deductions and

        Rebates.

 

--------------------------------------------------------------------------------------------------------------------

INSTRUCTIONS FOR QUESTION PAPER SETTERS:

 

1.      This particular Subject is of Two Parts. Part -‘A’ is of Elements of Auditing and Part – ‘B’ is of Taxation. Part –‘A’ Portion is for 60 Marks and Part –‘B’ Portion is for 40 Marks.

2.      Paper Setters are instructed to set the Question Paper in such a way that Section – I is to be reserved for 10 Marks consisting of Fill in the Blanks for 5 Marks and a Short Note for 5 Marks exclusively pertaining to Taxation Portion only.

 

3.      Section – II is to be reserved for 30 Marks and Two Full questions are to be answered out of Three Full Questions of 45 Marks exclusively pertaining to Elements of Auditing Portion Only.

 

4.       Section – III is to be reserved for 30 Marks and Two Full Questions are to be answered out of Three Full Questions of 45 Marks exclusively pertaining to Elements of Auditing Only.

 

5.      Section – IV is to be reserved for 30 Marks and Two Full Questions are to be Answered Out of Three Full Questions of 45 Marks exclusively pertaining to Taxation Portion Only.

------------------------------------------------------------------------------------------------------------

                                                                                                                           

            BOOKS RECOMMENDED:

 

1. A Hand Book of Practical Auditing by Tandon.B.N. – S.Chand & Company Ltd.

2. Auditing by Dr.P.N.Reddy Himalaya Publishing House.

3. Auditing by Dr..Paramashivaiah

4. Income Tax Law and Practice by Bhagavathi Prasad

5. Income Tax  by Mehrotra H.C.

6. Income Tax by Vinod Singhania.

 

Related Posts Plugin for WordPress, Blogger...