Education India,

Difference between Event and Transaction

2020-05-19T09:48:00.000-07:00

Transaction

So from the definition of accountancy (in the previous blog) we can see that the first and most important feature of accounts is recording the transaction. As production cannot happen without raw materials, without transaction accounting will not come into existence.

Event

Anything happens in the world is event. In our life so many events are happening in each and every moment. We can divide those events in two separate name non monetary Event and monetary Event.

1. Non monetary Event:- are those event which has no monetary attachment- like eating, sleeping, victory, order to purchase or sales etc.

2. Monetary Event:- are those event which has monetary attachment- purchase/sales, interest received, salary paid etc.

In accountancy only Monetary Event is taken into consideration.

Difference between event and transaction

Event	Transaction
Every things happening in the world is event.	Transaction is the part of an event.
Financial position may or may not be change.	Financial position will be change.
Two parties are not needed for the event.	Minimum two parties are needed for transaction.
Event is used for wider sense. *for example wining para cricket game.*	Financial event treated as transaction, for example purchase new pen.
Goods or services may not be transfer in the event. *For example keep the books in the reading table.*	Goods or services must be transfer in the transaction. *For example purchase goods.*
Each and every event not needs to record in the book. Keep the book in the bookshelf,	All the transaction must be recorded in the book.
Event may be realistic or non realistic.	Transaction is always realistic.
All events are not transaction.	But all the transactions are events.

What is transaction

2020-05-19T09:39:00.000-07:00

Transaction in accountancy

Each and every event which has financial impact in the business is called transaction.

So from the above statement we have found important two words

1. Event. 2. Financial impact.

In our world each and every moment different events are happening. All events are not transaction, example –

· Mother love to her child,

· Owner of a business house arrange marriage for her daughter,

These are the events which has no financial impact on the business so these are not transaction. And

· Sales goods,

· Paid rent for the factory.

These are the event which has financial impact in the business, so these are transaction as per the accountancy.

Therefore we can say that all the events are not transaction but all the transactions are event.

We can say transactions are the part of event.

Example of Event and Transaction

SL no	Particulars	Event	Transaction
1	Ram started business with capital Rs-50000		yes
2	Ram purchase materials of Rs-10000.		yes
3	Recruit Priyanka as a manager sale.	yes
4	Sales product of Rs- 100000.		Yes
5	A baby has been born in the house of Ram.	yes
6	Ram paid Rs- 1500 to his maid.	yes
7	Salary paid to Priyanka os Rs-10000		yes

What is transaction and event in Accountancy.

2020-05-16T22:21:00.002-07:00

  What is transaction? লেনদেন কি

Event

1. Non monetary Event:- are those event which has no monetary attachment- like eating, sleeping, victory, order to purchase or sales etc.

2. Monetary Event:- are those event which has monetary attachment- purchase/sales, interest received, salary paid etc.

In accountancy only Monetary Event is taken into consideration.

Transaction

Now we are going to discuss about the Transaction. Give And Takes are the two words from where the transaction has been started.

Mother love to child is

also a Transaction

But accountancy transaction should have the following features:--

1. Change in financial position

a. Quantitative or Net Change:-

Purchase truck by the company, Cash balance will decrease and Assets will increase.

b. Structural or Qualitative change:-

When total quantity of assets and liabilities will not change but individual assets and liabilities will change.

For example due received from debtors. In that case total assets and liabilities will not change but element of assets cash will increase and debtors will decrease.

Precious Assets position	After recovery position
Cash- 10000. Debtors- 10000	Cash- 15000. Debtors- 5000
Total assets- 20000	Total assets- 20000

2. Measurable in terms of money.

Transaction should be measure in terms of money.

3. Dual Aspect:-

Transactions always affect two party or two accounts.

--Example purchase machinery of Rs- 10000,

Cash (one account)

Machinery (Second account)

--Salary paid to Ram

Ram (one account)

Salary (second account)

4. Self-sufficient and Independent.

Purchase of Rs-10000 on credit and cash paid one day after, here we can find two separate transactions

* Credit purchase (one transaction)

*Paid to creditors (second transaction)

5. Transaction can be visible or not.

Company introduced 10% depreciation on machinery. We cannot see depreciation whereas it is a transaction.

6. Present of past event.

Example – Bad debt reserve. Company can create reserve for future bad debt, this is also a transaction.

Example of Event and Transaction

SL no	Particulars	Event	Transaction
1	Ram started business with capital Rs-50000		yes
2	Ram purchase materials of Rs-10000.		yes
3	Recruit Priyanka as a manager sale.	yes
4	Sales product of Rs- 100000.		Yes
5	A baby has been born in the house of Ram.	yes
6	Ram paid Rs- 1500 to his maid.	yes
7	Salary paid to Priyanka os Rs-10000		yes

Definition of Accounting

2020-05-16T22:02:00.003-07:00

Definition of Accounting

Accountancy is the practice of recording, classifying, and reporting on Business transactions for a business. It provides feedback to management regarding the financial results and status of an organization.

আর্থিক লেনদেনসমূহ নথিবদ্ধ করা সেই সাথে বিভিন্ন বিবরণীতে এবং বিশ্লেষণে ফলাফলসমূহ সংরক্ষণ, শ্রেণীবদ্ধ, উদ্ধার, সারসংক্ষেপ এবং উপস্থাপন করাকে হিসাবরক্ষণ বলা হয়।

History of accounting.

2020-05-16T22:01:00.004-07:00

Q:- Who is the father of Accounting?

A:- Luca Pacioli,

Q:- When first book of Accounting was published?

A:-In 1494, the first book on double-entry accounting was published by Luca Pacioli. He did not invent the system. Instead, he simply described a method used by merchants in Venice during the Italian Renaissance period. His system included most of the accounting cycle as we know it today.

Nominal GDP vs. Real GDP

2020-05-16T22:00:00.002-07:00

Nominal GDP vs. Real GDP

Since GDP is based on the monetary value of goods and services, it is subject to inflation. Rising prices will tend to increase GDP and falling prices will make GDP look smaller, without necessarily reflecting any change in the quantity or quality of goods and services produced. Thus, just by looking at an economy’s un-adjusted GDP, it is difficult to tell whether the GDP went up as a result of production expanding in the economy or because prices rose. That’s why economists have come up with an adjustment for inflation to arrive at an economy’s real GDP. For example, if prices rose by 10% since the base year, the deflator would be 1.10. Nominal GDP is divided by this deflator, yielding real GDP. (Nominal GDP is used when comparing different quarters of output within the same year. When comparing the GDP of two or more years, real GDP is used because, by removing the effects of inflation, the comparison of the different years focuses solely on volume.)

Compare between GDP, GNP, GNI.

2020-05-16T21:59:00.000-07:00

Compare between GDP vs. GNP

GDP (Gross domestic product) refers to measures the economic activity within the physical borders of a country; whether the producers are native to that country or foreign-owned entities (i.e. production of TATA and production of P&G within India will be included but not included production of TATA outside India)

GNP (gross National product) it measures the overall production of a native person or corporation including those based abroad while excluding domestic production by foreigners. (I.e. production of TATA and all other Indian companies production all over the world but not included production of other national companies)

Compare between GDP vs. GNP vs. GNI

GDP and GNP we have already discussed. GNI is the sum of all income earned by citizens or nationals of a country regardless of whether the underlying economic activity takes place domestically or abroad. with this approach, the income of a country is calculated as its domestic income plus its indirect taxes and depreciation, as well as its net foreign factor income (Net foreign factor income is found by subtracting the payments made to foreigners from the payments made to India).

In an increasingly global economy, GNI is being recognized as possibly a better metric for overall economic health than GDP. Because certain countries have most of their income withdrawn abroad by foreign corporations and individuals, their GDP figures are much higher than those of their GNI.

GDP and PPP.

To improve its usefulness of GDP economist are used number of adjustments. On its own, simple GDP shows us the size of the economy, but tells us little about the standard of living by itself. After all, populations and cost of living are not consistent around the world. Nothing much could be gleaned by comparing the nominal GDP of India to the nominal GDP of London, for example. For starters, India has approximately 300 times the population of London.

To solve this problem, statisticians instead compare GDP per capita. GDP per capita is calculated by dividing a country's total GDP by its population, and this figure is frequently cited to assess the nation's standard of living. Even so, the measure is still imperfect. Suppose India has a GDP per capita of $1,000, while London has a GDP per capita of $20,000. This doesn't necessarily mean that the average engilish person is 10 times better off than the average Indian person. GDP per capita doesn't account for how expensive it is to live in a country.

Purchasing power parity (PPP) attempts to solve this problem by comparing how many goods and services we can buy with per unit of money in the in different countries – comparing the price of an item, or basket of items, in two countries after adjusting for the exchange rate between the two, in effect.

Real per capita GDP, adjusted for purchasing power parity, is a heavily refined statistic to measure true income, which is an important element of well-being. An individual in London might make $150,000 a year, while an individual in India might make $50,000 a year. In nominal terms, the worker in London is better off. But if a year's worth of food, clothing and other items costs three times as much in London than India, however, the worker in India has a higher real income.

What is GDP

2020-04-07T10:31:00.000-07:00

What Is GDP?

GDP first came to light 1937 in a report to the U.S. Congress
Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
DP provides an economic snapshot of a country.
Although it has limitations, GDP is a key tool to guide policymakers, investors, and businesses in strategic decision making

Type of GDP measurement.

Nominal GDP: - is the measurement of the raw data.
Real GDP: - takes into account the impact of inflation and allows comparisons of economic output from one year to the next and other comparisons over periods of time.
GDP per capita:-measures GDP per person in the national populace; it is a useful way to compare GDP data between various countries.

Calculation of GDP.

· GDP can be calculated by using three methods.

1. Expenditure approach.

2. Output (or production) approach.

3. Income approach.

Expenditure approach:-

This approach can be calculated using the following formula: GDP = C + G + I + NX, or (consumption + government spending + investment + net exports).

· Where C or Consumption is private consumption expenditures or consumer spending. Consumers spend money to buy consumption goods and services, such as groceries and vegetable and all others daily need products. Consumer confidence, therefore, has a very significant bearing on economic growth. A high confidence level indicates that consumers are willing to spend, while a low confidence level reflects uncertainty about the future and an unwillingness to spend.

· Where G or Government spending represents government consumption expenditure and gross investment. Governments spend money on equipment, infrastructure, and payroll.

· Where I or investment represents private domestic investment or capital expenditure. Businesses spend money to invest in their business activities (buying machinery & equipment, purchase land and building for instance). Business investment is a critical component of GDP since it increases productive capacity and boosts employment.

· Where NX is net exports, calculated as total exports minus total imports (NX = Exports - Imports). A current account surplus boosts a nation’s GDP, while a chronic deficit is a drag on GDP.

Output (or production) approach:-

The production approach is something like the reverse of the expenditure approach. Instead of measuring input costs that feed economic activity, the production approach estimates the total value of economic output and deducts costs of intermediate goods that are consumed in the process (like those of materials and services). The production approach looks backward from the vantage of a state of completed economic activity.

Income approach:-

Something of an intermediary between the two other approaches—is the income approach. Income earned by all the factor of production in an economy includes the wages paid to labor, the rent earned by land, the return on capital in the form of interest, as well as corporate profits. The income approach factors in some adjustments for some items that don’t show up in these payments made to factors of production. For one, there are some taxes—such as sales taxes and property taxes—that are classified as indirect business taxes. In addition, deprecation, which is a reserve that businesses set aside to account for the replacement of equipment that tends to wear down with use, is also added to the national income. All this constitutes national income, which is used both as an indicator of implied production and of implied expenditure.

Nominal GDP vs. Real GDP

Compare between GDP vs. GNP

Compare between GDP vs. GNP vs. GNI

GDP and GNP we have already discussed. GNI is the sum of all income earned by citizens or nationals of a country regardless of whether the underlying economic activity takes place domestically or abroad. with this approach, the income of a country is calculated as its domestic income plus its indirect taxes and depreciation, as well as its net foreign factor income (Net foreign factor income is found by subtracting the payments made to foreigners from the payments made to India).

GDP and PPP.

Difference between internal and external audits

2020-01-20T09:34:00.001-08:00

“In broad view -- Audit means checking of work done by you to achieve future goal and compare with the standard procedure you set previously”.

As per definition given by ICAI: - Audit is systematic, Independent, Examination of financial records, irrespective of legal form, whether profit oriented with objective to give opinion, whether financial statements true & fair view.

Types of Audits prescribed under the Companies Act, 2013:-

· Statutory Audit

· Internal Audit

· Secretarial Audit

· Cost Audit

Here we are going to discuss different between Internal audit and external audit

The difference between internal and external audits

Internal audit		External audit
Internal audit evaluate the organization internal control which include accounting process and corporate governance,		External audit refers to the independent critical examination of the financial statements and records of a business or organization.
Internal audit is carried out on continuous basis throughout the year.		External audit is carried out after the preparation of final accounts and financial statements usually on yearly basis.
Objective of internal audit is to evaluate and improve the effectiveness of accounting, governance, risk management and other control processes of the company		Objective of external audit is to add reliability to the financial statements and reports of the company.
Internal audit covers financial records, various risks, and other operational activities		External audit covers financial statements and records.
Scope of internal audit is determined by the management		Scope of external audit is determined by the relevant law or a regulator.
Appointed by the management of the company		Appointed by the shareholders of the company
Internal audit is usually carried out by an employee of the company		External audit is carried out by an independent person or agency
Internal audit report is submitted to the management of the company or organization		External audit report is submitted to the shareholders, or in some cases, to a regulator.
Internal auditor can be removed by the company management.		External auditor can be removed by the shareholders of the company.

What is sampling in audit?

2020-01-13T11:01:00.000-08:00

What is sampling?

Samples are the part of population; samples are use for checking population.

Sampling is the statistical process of selecting and studying the characteristics of a relatively small number of items from a relatively large population of such items, to draw statistically valid inferences about the characteristics about the entire population.

(For example, you might have a list of information on 100 students out of 1,000 students; you can use that list to make some assumptions about the entire population’s behavior).

Sampling process

· Block sampling:- A consecutive or sequential series of items are selected for review. For example, an auditor elects to use block sampling to examine customer invoices, and intends to pick 50 invoices. She picks invoice numbers 1000 through 1049. In case of microfinance if an auditor wish to examine pass book and he wants to take block of pass book whose loan size is 1,00.000 to 150000. Though this approach may be efficient; there is a risk that a block of items will not reflect the characteristics of the entire population.

· Haphazard sampling:- Items are selected without following any structured or technique. However, Care must be taken by the auditor when adopting haphazard sampling to avoid any conscious bias or predictability.

· Random sampling:- In random sampling the sample is choosing randomly. This method of sampling ensures that all items within a population stand an equal chance of selection by the use of random number tables or random number generators. This method also can be called lottery method.

· Systematic sampling:- Selections are taken from the population at fixed intervals, such as every 20th item. This tends to be a relatively efficient sampling technique.

· Personal judgment:- The auditor uses her own judgment to select items, perhaps favouring items that have larger monetary values or which appear to have a higher level of risk associated with them.

Major objectives of the Internal Audit

2020-01-13T10:58:00.003-08:00

Major objectives of the Internal Audit

· Control: - One of the main objectives of an internal audit is to keep strict control over all the activities of an organization. The management needs assurance of the authenticity of the financial records and the efficiency of the operations of the firm. An internal audit helps establish both.

· Ongoing review of Business:- The current financial year is ongoing, internal audit can point out the mistakes, weak points, and strengths of the business. This will allow an ongoing review, instead of waiting till the year-end.

· Proper Accounting System:- Internal audit keeps a very close check on the accounting system of an organization. It checks everything from the vouchers, to the authority of transactions to mathematical accuracy. All entries are verified against documents and other proof. Chances of mistakes or frauds are greatly reduced.

· Asset Protection:- Physical verification of the ownership and possession of the asset is one of the most crucial part of internal audit. And in case of special transactions like sale, purchase or revaluation of the asset, the authorization of this is also audited in an internal audit. So the assets enjoy complete protection.

· Continuation of checking and correction:- In a statuary audit, the auditor will be able to determine if any mistakes were made in the financial records. But this only happens at the end of the financial year. And the mistakes are corrected thereafter. But in case of an internal audit, the mistakes are spotted as soon as they are made, and corrected immediately.

· Minimization of fraud:- As the internal audit is continuous process so it minimize the happening of fraud.

Type of internal audit

2020-01-13T10:56:00.004-08:00

Type of internal audit

· Compliance Audits: - Evaluate compliance with applicable laws, regulations, policies and procedures.

· Environmental Audits:- Assess the impact of a company’s operations on the environment. They may also assess the company’s compliance with environmental laws and regulations.

· Information Technology Audits:- The security and confidential customer information or intellectual property. They will typically include the assessment of general IT controls related logical access, change management, system operations, and backup and recovery.

· Operational Audits:- Assess the organization’s overall efficiency and reliability.

· Performance Audits:- Evaluate whether the organization is meeting the benchmark set by management in order to achieve the goals and objectives set by the Board of Directors.

What is internal Audit

2020-01-13T10:55:00.002-08:00

What is internal Audit

Internal audit is an independent check on the performance of an organization. Internal audits evaluate a company’s internal controls, including its corporate governance and accounting processes. The idea behind Internal Audit is not just to catch frauds or malpractices but more constructive, i.e. to add value and efficiency within the organization by mitigating the possibilities of malpractices. It ensure compliance with laws and regulations and help to maintain accurate and timely financial reporting and data collection. Internal audits also provide management with the tools necessary to attain operational efficiency by identifying problems and correcting lapses before they are discovered in an external audit.

Internal Auditing At Microfinance

2020-01-13T10:19:00.000-08:00

What is internal Audit:-

Scope of Internal Audit:-

· Safeguarding the assets of the organization.

· Efficient and Economical use of organizational resources.

· Reliability and integrity of information.

· Accomplishment of established objectives and goals for operations or programs.

Scope of Internal Audit at MFI:-

· Financial reports and records, receipts, vouchers, cashbooks, ledgers, client passbook, MFIs passbooks, cash balances.

· Loan documents: Loan applications, promissory notes and other documents required as per policy related data entered in Excel spreadsheets or software.

· Client visits: check meeting discipline – timing, conduct, staff and client discipline, check passbooks interact with clients can also check loan utilization.

· Other observation: Staff disciplines, hygiene, file arrangements and cataloguing.

Type of internal audit:-

· Compliance Audits: - Evaluate compliance with applicable laws, regulations, policies and procedures.

· Environmental Audits:- Assess the impact of a company’s operations on the environment. They may also assess the company’s compliance with environmental laws and regulations.

· Operational Audits:- Assess the organization’s overall efficiency and reliability.

· Performance Audits:- Evaluate whether the organization is meeting the benchmark set by management in order to achieve the goals and objectives set by the Board of Directors.

Major objectives of the Internal Audit:-

· Control: - One of the main objectives of an internal audit is to keep strict control over all the activities of an organization. The management needs assurance of the authenticity of the financial records and the efficiency of the operations of the firm. An internal audit helps establish both.

· Ongoing review of Business:- The current financial year is ongoing, internal audit can point out the mistakes, weak points, and strengths of the business. This will allow an ongoing review, instead of waiting till the year-end.

· Proper Accounting System:- Internal audit keeps a very close check on the accounting system of an organization. It checks everything from the vouchers, to the authority of transactions to mathematical accuracy. All entries are verified against documents and other proof. Chances of mistakes or frauds are greatly reduced.

· Asset Protection:- Physical verification of the ownership and possession of the asset is one of the most crucial part of internal audit. And in case of special transactions like sale, purchase or revaluation of the asset, the authorization of this is also audited in an internal audit. So the assets enjoy complete protection.

· Continuation of checking and correction:- In a statuary audit, the auditor will be able to determine if any mistakes were made in the financial records. But this only happens at the end of the financial year. And the mistakes are corrected thereafter. But in case of an internal audit, the mistakes are spotted as soon as they are made, and corrected immediately.

· Minimization of fraud:- As the internal audit is continuous process so it minimize the happening of fraud.

Process of internal audit:-

Process of internal audit differs for different organization. Process is guided by the organization policy. Policy is clearly lays down the frequency of audit, scope of audit, objectives of audit, format and frequency of audit report.

Audit plan:-

Audit plan is a confidential document and shared only with the audit committee or Head of the organization or the Board of Directors. But normally it can be monthly, quarterly, half yearly, annually.

Sampling process:-

· Systematic sampling:- Selections are taken from the population at fixed intervals, such as every 20th item. This tends to be a relatively efficient sampling technique.

Reporting and Follow Up:-

Internal audit is most important process of an organization. In the process of internal audit, “Report” presentation is most crucial part. The auditors have to ensure that audit report is be completely objective and reports all observations and findings. The auditors should not be judgmental of finding and take decisions, as it is not in their right to do so. Audit department has to simply report findings and it is the job of the management to take decision on those findings.

A good audit report should have the following features:-

· Report should be simple and summarized.

· Risk associated with each finding should be clearly mentioned in the report, and risk should categorize as high, medium, low.

· Justification with details findings should be annexed with the report.

· Recommendation for each finding should clearly mention in the report.

Internal audit and Forensic audit

2019-12-27T04:54:00.000-08:00

Forensic Audit.

v A forensic audit is an examination and evaluation of a firm's or individual's financial records to derive evidence that can be used in a court of law or legal proceeding.

v Forensic audits could also involve situations that do not involve financial fraud, such as disputes related to bankruptcy filings, business closures, and divorces.

v A forensic audit may be conducted to prosecute a party for fraud, embezzlement, or other financial crimes.

Reasons to Conduct a Forensic Audit

v Conflicts of Interest—when an Employee uses his or her influence for personal gains to the loss of the company. (For example, if a manager allows and approves inaccurate expenses of an employee with whom he has personal relations).

v Bribery—offering money to get things done or influence a situation in one’s favor.

v Extortion—the wrongful use of actual or threatened force, violence, or intimidation to gain money or property from an individual or entity.

Process Forensic Audit.

The process of a forensic audit is same like regular financial audit—

v planning,

v collecting evidence,

v writing a report,

v Only an additional step for a potential court appearance.

Planning the Investigation.

The forensic auditor and team will plan their investigation to achieve objectives, such as

Ø Identifying what fraud, if any, is being carried out.

Ø Determining the period during which the fraud occurred.

Ø Discovering how the fraud was concealed.

Ø Naming the perpetrators of the fraud.

Ø Quantifying the loss suffered as a result of the fraud.

Ø Gathering relevant evidence that is admissible in court.

Ø Suggesting measures to prevent such frauds from occurring in the future

Reporting

A forensic audit requires a written report about the:-

ü The findings of the investigation.

ü A summary of the evidence collected.

ü An explanation of how the fraud was accomplished.

ü Suggestions for preventing similar frauds in the future—such as improving internal controls.

Difference between Internal audit and forensic audit.

Forensic Audit	Internal Audit
A forensic accountant is defined as “someone whose job is examining financial records to help find out whether a crime has been committed, or help with a legal case.”	An internal auditor is defined as “a person who does internal audits for a company.”
An examination of financial records to find any illegal financial activity which is suitable to courts of judicature or to public discussion and debate.	While an internal audit is defined as an examination of a company’s accounts or activities by its own accountants or managers.
The objective of a forensic audit is to investigate the matter with the intention it will appear in court for some type of trial or mediation.	An internal audit, on the other hand, is prepared to be presented to the company’s governing body or owners to discuss the financial health of the organization.

2019-12-23T08:20:00.001-08:00

Requirement of internal audit by Law:-

13 Companies Required to Appoint Internal Auditor

(1) The following class of companies shall be required to appoint an internal auditor ¹[which may be either an individual or a partnership firm or a body corporate], namely:-

(a) every listed company;

(b) every unlisted public company having-

(i) paid up share capital of fifty crore rupees or more during the preceding financial year; or

(ii) turnover of two hundred crore rupees or more during the preceding financial year; or

(iii) outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year; or

(iv) outstanding deposits of twenty five crore rupees or more at any point of time during the preceding financial year; and

(i) turnover of two hundred crore rupees or more during the preceding financial year; or

(ii) outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year:

Provided that an existing company covered under any of the above criteria shall comply with the requirements of section 138 and this rule within six months of commencement of such section.

Explanation.- For the purposes of this rule –

(i) the internal auditor may or may not be an employee of the company;

²[(ii) the term “Chartered Accountant” or “Cost Accountant” shall mean a “Chartered Accountant” or a “Cost Accountant”, as the case may be, whether engaged in practice or not’.]

(2) The Audit Committee of the company or the Board shall, in consultation with the Internal Auditor, formulate the scope, functioning, periodicity and methodology for conducting the internal audit.

Amendments

1. Substituted by the Notification Companies (Accounts) Amendment Rules, 2016 Dated 27th July, 2016.

In rule 13 of the principal rules, in sub-rule (1),- (a) in the opening portion, the words “or a firm of internal auditors”, the words “which may be either an individual or a partnership firm or a body corporate” shall be substituted;

2. Substituted by the Notification Companies (Accounts) Amendment Rules, 2016 Dated 27th July, 2016.

In the Explanation, for item;

'(ii) The term "Chartered Accountant" shall mean a Chartered Accountant whether engaged in practice or not.'

the following item shall be substituted, namely:

'(ii) the term “Chartered Accountant” or “Cost Accountant” shall mean a “Chartered Accountant” or a “Cost Accountant”, as the case may be, whether engaged in practice or not’.