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PROFESSIONAL JUDGEMENT IN AUDITING
You don't need to be an accountant. You just need to ask three questionsA loss can exist long before the accounts admit it, because management decides when to admit it. This story shows how that delay works, the...- Technology can't substitute professional judgement, audit quality responsibility lies with auditor: NFRAThe National Financial Reporting Authority has introduced new principles for technology adoption by auditors. These guidelines promote the ...
- Accounting fraud: Every time, the same queue. The company, the auditor, and shareholders at the endBy the time a “going-concern” paragraph appears in an audit report, the trouble is usually several quarters old. The earlier signals are el...
- Warren Buffett said Berkshire Hathaway would be worth half without this company – although it kept shrinkingWarren Buffett once told his shareholders that without one particular acquisition, Berkshire Hathaway “would be lucky to be worth half of w...
- Sell a car. Promise to buy it back. That's not a sale. But companies show it as oneRevenue manipulation does not always sit in the sales line. The clue may be hidden deep in the figures and their explanation. This story ex...
- This is how a company tricks you into thinking it's bigger than it is in realityRevenue is not always the amount written on the invoice. The final number can change because of rebates, returns, penalties, warranties, cu...
- The hidden cost of low audit fees: A risk investors cannot ignoreIndian audit fees for listed companies have lagged behind company growth significantly. This under-pricing compromises audit quality and au...
- Asset which sits in the balance sheet for years without moving, then suddenly wipes out all profit in a single quarterThe most dangerous number on a balance sheet is not always the one that looks wrong. It is often the one that depends heavily on management...
- Sold, or just shipped? How sales figures can be manipulated – and how you can spot itGoods left the warehouse. The invoice went out. So it must be a sale, right? Not always. Under the rules, a sale counts only when the custo...
- AI bubble won't tell you who's naked till the tide goes out. Warren Buffett explained why 25 years agoWarren Buffett said you only find out who is swimming naked only when the tide goes out. The year he wrote this in his annual letter to sha...
- The boss factor: Why a good manager matters more than you think for your careerYou can’t pick the manager, but he could decide your career, says Devashish Chakravarty.
- Forget fake invoices. The real risk is the assumptions made in the balance sheet to hide lossesMost accounting risks make noise. The biggest one on the Indian balance sheet doesn't. It hides inside growth assumptions, discount rates, ...
- When a small footnote is used as a tool to make a weak balance sheet look strongThis is the uncomfortable truth about company accounts. A number on a balance sheet is not always cash that will return, and a liability tu...
- ET Prime Special Series: Multibagger or IBC - Part 63: This engine parts maker is now chasing aerospace, defenceSome auto ancillary stories are best understood by products. This one is best understood by buckets. The first bucket is still old auto, an...
- The accounting trick used by companies to make a weak balance sheet look strongIn one recent case, a large investment sat comfortably under equity until the auditor read the shareholders' agreement, found a buyback cla...
- Quote of the Day by American singer Miley Cyrus: “You can't stop people from talking about you, but you can stop giving them… – Inspiring lessons on self-control, maturity, public perception, negativity and why your actions speak louder than wordsQuote of the Day by Miley Cyrus: Miley Cyrus’s quote, “You can't stop people from talking about you, but you can stop giving them something...
- Profit on paper, loss in reality: How a routine accounting tool is used to deceive and take investors for a rideAmortisation is a number most investors skip, but it can shape reported profit. On the surface, it looks routine: A company spreads the cos...
- NFRA imposes Rs 2-cr penalty on audit firm in Coffee Day case, debars two auditorsThe National Financial Reporting Authority penalized M/s Venkatesh & Co Rs two crore and barred auditors Dasaraty V and Desikan G for 10 an...
- Donning CA’s hat means being an accountant & be accountable 24x7CAs found guilty of bringing 'disrepute' to profession may end up losing licence, face ban.
- CBDT extends date for return filing by businessman, professionalsIncome Tax department extended the last date for filing I-T return for businessman and professionals who are required to submit the tax aud...
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