(B) F OREIGN T RAVEL E XPENSES (I) EXAMINE T.A.

BILLS SUBMITTED BY THE EMPLOYEES STATING THE DETAILS OF TOUR, DETAILS OF EXPENSES, ETC. (II) VERIFY THAT THE TOUR PROGRAMME WAS PROPERLY AUTHORISED BY THE COMPETENT AUTHORITY. (III) CHECK THE T.A. BILLS ALONG WITH ACCOMPANYING SUPPORTING DOCUMENTS SUCH AS AIR TICKETS, TRAVEL AGENTS BILL, HOTEL BILLS WITH REFERENCE TO THE INTERNAL RULES FOR ENTITLEMENT OF THE EMPLOYEES AND ALSO MAKE SURE THAT THE BILLS ARE PROPERLY PASSED. (IV) SEE THAT THE TOUR REPORT ACCOMPANIES THE T.A. BILL. THE TOUR REPORT WILL SHOW THE PURPOSE OF THE TOUR. SATISFY THAT THE PURPOSE OF THE TOUR AS SHOWN BY THE TOUR REPORT CONFORMS WITH THE AUTHORISATION FOR THE TOUR. (V) CHECK RESERVE BANK OF INDIA S PERMISSION, IF NECESSARY, FOR WITHDRAWING THE FOREIGN EXCHANGE. FOR A COMPANY THE AMOUNT OF FOREIGN EXCHANGE SPENT IS TO BE DISCLOSED SEPARATELY IN THE ACCOUNTS AS PER REQUIREMENT OF PART I OF SCHEDULE VI TO THE COMPANIES ACT, 1956. (A) GOODS SENT ON CONSIGNMENT (I) VERIFY THE ACCOUNTS SALES SUBMITTED BY THE CONSIGNEE SHOWING GOODS SOLD AND STOCK OF GOODS IN HAND. (II) RECONCILE THE FIGURE OF THE GOODS ON HAND, AS GIVEN IN THE LAST ACCOUNTS SALES, WITH THE PROFORMA INVOICES AND ACCOUNTS SALES RECEIVED DURING THE YEAR. IF ANY CONSIGNMENT STOCK WAS IN THE HANDS OF THE CONSIGNEE AT THE BEGINNING OF THE YEAR, THE SAME SHOULD BE TAKEN INTO ACCOUNT IN THE RECONCILIATION. 5.4 AUDITING (III) OBTAIN CONFIRMATION FROM THE CONSIGNEE FOR THE GOODS HELD ON CONSIGNMENT ON THE BALANCE SHEET DATE. VERIFY THE TERMS OF AGREEMENT BETWEEN THE CONSIGNOR AND THE
CONSIGNEE TO CHECK THE COMMISSION AND OTHER EXPENSES DEBITED TO THE CONSIGNMENT ACCOUNT AND CREDITED TO THE CONSIGNEE S ACCOUNT. CORRESPONDINGLY CHECKED.

THE

ACCOUNTS SALES ALSO MUST BE

(IV) ENSURE

THAT THE QUANTITY OF GOODS IN HAND WITH THE CONSIGNEE HAS BEEN VALUED AT

COST PLUS PROPORTIONATE NON- RECURRING EXPENSES, E. G., FREIGHT, DOCK DUES, CUSTOMS DUE, ETC., UNLESS THE VALUE IS LOWER.

IN

CASE NET REALISABLE VALUE IS LOWER, THE STOCK

IN HAND OF THE CONSIGNEE SHOULD BE VALUED AT NET REALISABLE VALUE.

ALSO

SEE THAT THE

ALLOWANCE HAS BEEN MADE FOR DAMAGED AND OBSOLETE GOODS IN MAKING THE VALUATION.

(V) SEE STOCKS.

THAT GOODS IN HAND WITH THE CONSIGNEE HAVE BEEN SHOWN DISTINCTLY UNDER

Auditor independence refers to the independence of the internal auditor or of the external auditor from parties that may have a financial interest in the business being audited. Independence requires integrity and an objective approach to the audit process. The concept requires the auditor to carry out his or her work freely and in an objective manner. Independence of the internal auditor means independence from parties whose interests might be harmed by the results of an audit. Specific internal management issues are inadequate risk management, inadequate internal controls, and poor governance.

Independence of the external auditor means independence from parties that have an interest in the results published in financial statements of an entity. The support from and relation to the Audit Committee of the client company, the contract and the contractual reference to public accounting standards/codes generally provides independence from management, the code of ethics of the Public Accountant profession) helps give guidance on independence form suppliers, clients, third parties.

Internal and external concerns are convoluted when nominally independent divisions of a firm provide auditing and consulting services.[1] The Sarbanes-Oxley Act of 2002 is a legal reaction to such problems. This article mostly deals with the independence of the statutory auditor (commonly called external auditor). For the independence of the Internal Audit, see Chief audit executive, articles "Independent attitude" and "organisational independence", or organizational independence analysed by the IIA. The purpose of an audit is to enhance the credibility of financial statements by providing written reasonable assurance from an independent source that they present a true and fair view in accordance with an accounting standard. This objective will not be met if users of the audit report believe that the auditor may have been influenced by other parties, more specifically company managers/directors or by conflicting interests (e.g. if the auditor owns shares in the company to be audited). In addition to technical competence, auditor independence is the most important factor in establishing the credibility of the audit opinion. Auditor independence is commonly referred to as the cornerstone of the auditing profession since it is the foundation of the publics trust in the accounting profession.[2] Since 2000, a wave of high profile accounting scandals have cast the profession into the limelight, negatively affecting the public perception of auditor independence.

Taxation of Limited liability partnership

As per the Budget 2009-10, LLP will be treated as Partnership firms for the purpose of Income Tax and will be taxed like a partnership firm. Change in Definition of Firm, Partner & Partnership The Budget 2009-10 has amended the definition of Firm and Partners in the following manner: a. Firms shall have the meaning assigned to it in the India Partnership Act 1932 and shall include a limited liability Partnership as defined in the Limited Liability Partnership Act 2008.

b. Partner shall have the meaning assigned to it in the Indian Partnership Act 1932 and shall
include Any person, being a minor, has been admitted to the benefits of partnership ; and A partner of a limited liability partnership as defined in the Limited Liability Partnership Act 2008.

c.

Partnership shall have the meaning assigned to it in the India Partnership Act 1932 and shall include a limited liability partnership as defined in the Limited Liability Partnership Act 2008

Tax rate:

30% flat tax rate + 3% education cess No Minimum Alternate Tax & Dividend Distribution Tax

Eligibility (section 184):In order for Limited Liability Partnership to be assessed as firm as Income Tax Act, it has to satisfy the following criteria

The LLP is evidenced by an instrument i.e. There is a written LLP Agreement. The individual shares of the partners are very clearly specified in the deed. A certified copy of LLP Agreement must accompany the return of income of the LLP of the previous year in which the partnership was formed. If during a previous year, a change takes place in the constitution of the LLP or in the profit sharing ratio of the partners, a certified copy of the revised LLP Agreement shall be submitted along with the return of income of the previous years in question. There should not be any failure on the part of the LLP while attending to notices given by the Income Tax Officer for completion of the assessment of the LLP.

LLP can claim the following deductions:-

Interest paid to partners, provided such interest is authorised by the LLP Agreement. Any salary, bonus, commission, or remuneration (by whatever name called) to a partner will be allowed as a deduction if it is paid to a working partner who is an individual. The remuneration paid to such working partner must be authorised by the LLP Agreement and the amount of remuneration must not exceed the given limits

Lien and stoppage in transit

The main point of distinction between right of lien and right of stoppage in transit are as follows: (1) Right of stoppage in transit arises when the buyer is insolvent and is unable to pay. But the right of lien can be exercised even when the buyer is able to pay but does not pay. (2) The right of stoppage in transit comes into operation only after the seller has parted with the possession of the goods but the sellers lien comes into existence and continues so long as the seller has got possession of the goods. (3) The right of stoppage in transit commences when the goods have left the possession of the seller and continues until the buyer has acquired possession thereof. But the right of lien comes to an end as soon as the goods go out of the possession of the seller. (4) The right of lien is right to retain possession of the goods. The right of stoppage on the other hand is the right to regain possession of the goods. (5) Possession is the test of a right of lien. The test for stoppage in transit is the nondelivery of the goods to the buyer.