Answer : The word ‘Audit’ is a derivative of the word ‘Audition’ which means ‘to hear’. In earlier times, the Kings used to hear their accountants narrate the accounts verbally. However, as the complexity of the accounting function grew, need was felt to thoroughly check the accounts for mistakes misclassification and document the findings in a written form so that it can be used by the Management, stakeholders, investors, Government and various other bodies. This process is known as Auditing or Audit.
👍 Q :Functions of audit?
Answer : The function of internal audit is concerned with analysis of internal check. The internal audit can look into the duties of each employee. All employees are provided jobs on the basis of their abilities. The auditor can test the effectiveness of internal check. Thefunction of internal audit is examining the application of legal requirements.
The accounts are prepared under certain legal frame work. Verification of accuracy is a function of internal audit. The accuracy of accounting books and records can be verified with the help auditing techniques. The audit techniques include inspection, observation, inquiry, confirmation, computation and review. An auditor can check the accuracy through these techniques.
👍 Q : What is annual general meeting(AGM) ?
Answer : AGM the statutory meeting of the directors and shareholders of a company or of the members of a society, held once every financial year, at which the annual report is presented
👍 Q : What is extraordinary general meeting(EGM) ?
Answer : A meeting other than the annual general meeting between a company’s shareholders, executives and any other members. An EGM is Q : Rules surrounding the AGM
Answer : Most private companies are not required to hold an AGM. Public limited companies (plcs) must hold an AGM within six months of their financial year end.
Companies can still hold an AGM if they choose to. As with other meetings, an AGM must be arranged if any director asks for one with due notice, or if 5 per cent of the members request one. A company may also still need to hold one in certain circumstances. For example, you must hold an AGM if you want to dismiss a director or auditor before the end of their term, or if you are a public company with traded shares.
If the company does hold an AGM:
* You must send written notice to the directors and shareholders 14 days in advance (21 days in advance for public companies with traded shares), unless your company articles state otherwise. An AGM can be held at shorter notice if 90 per cent of members agree (95 per cent for plcs).
* You are no longer required to circulate copies of the company’s accounts before an AGM. However, they must be sent to members before they are due to be filed with the registrar of companies.
* Directors and shareholders can vote on the appointment of directors and auditors to the company (if required).
* Ordinary resolutions can now be passed by a simple majority and special resolutions require at least 75 per cent of those eligible to vote in favour.
* You must file at Companies House any special resolutions passed at a meeting.
usually called on short notice and deals with an urgent matter.
👍 Q: what is Accounting ?
Answer : The information system that identifies ,records, and communicates the economic events of an organization to interested users
👍 Q : definition of cash basis accounting?
Answer: An accounting method in which income is recorded when cash is received, and expenses are recorded when cash is paid out.
👍 Q : Definition of Accrual Basis accounting ?
Answer : The most commonly used accounting method, which reports income when earned and expenses when incurred.
👍Q : what is capital expenditure ?
Answer : Money spent to acquire or upgrade physical assets such as buildings and machinery. also called capital spending or capital expense.
👍Q : what is revenue expenditure?
👍 Q :Functions of audit?
Answer : The function of internal audit is concerned with analysis of internal check. The internal audit can look into the duties of each employee. All employees are provided jobs on the basis of their abilities. The auditor can test the effectiveness of internal check. Thefunction of internal audit is examining the application of legal requirements.
The accounts are prepared under certain legal frame work. Verification of accuracy is a function of internal audit. The accuracy of accounting books and records can be verified with the help auditing techniques. The audit techniques include inspection, observation, inquiry, confirmation, computation and review. An auditor can check the accuracy through these techniques.
👍 Q : What is annual general meeting(AGM) ?
Answer : AGM the statutory meeting of the directors and shareholders of a company or of the members of a society, held once every financial year, at which the annual report is presented
👍 Q : What is extraordinary general meeting(EGM) ?
Answer : A meeting other than the annual general meeting between a company’s shareholders, executives and any other members. An EGM is Q : Rules surrounding the AGM
Answer : Most private companies are not required to hold an AGM. Public limited companies (plcs) must hold an AGM within six months of their financial year end.
Companies can still hold an AGM if they choose to. As with other meetings, an AGM must be arranged if any director asks for one with due notice, or if 5 per cent of the members request one. A company may also still need to hold one in certain circumstances. For example, you must hold an AGM if you want to dismiss a director or auditor before the end of their term, or if you are a public company with traded shares.
If the company does hold an AGM:
* You must send written notice to the directors and shareholders 14 days in advance (21 days in advance for public companies with traded shares), unless your company articles state otherwise. An AGM can be held at shorter notice if 90 per cent of members agree (95 per cent for plcs).
* You are no longer required to circulate copies of the company’s accounts before an AGM. However, they must be sent to members before they are due to be filed with the registrar of companies.
* Directors and shareholders can vote on the appointment of directors and auditors to the company (if required).
* Ordinary resolutions can now be passed by a simple majority and special resolutions require at least 75 per cent of those eligible to vote in favour.
* You must file at Companies House any special resolutions passed at a meeting.
usually called on short notice and deals with an urgent matter.
👍 Q: what is Accounting ?
Answer : The information system that identifies ,records, and communicates the economic events of an organization to interested users
👍 Q : definition of cash basis accounting?
Answer: An accounting method in which income is recorded when cash is received, and expenses are recorded when cash is paid out.
👍 Q : Definition of Accrual Basis accounting ?
Answer : The most commonly used accounting method, which reports income when earned and expenses when incurred.
👍Q : what is capital expenditure ?
Answer : Money spent to acquire or upgrade physical assets such as buildings and machinery. also called capital spending or capital expense.
👍Q : what is revenue expenditure?