14 Questions
What is the main focus of SA 600 'Using the Work of Another Auditor'?
Audit of Consolidated Financial Statements
In the context of group audits, what is the purpose of Permanent Consolidation Adjustments?
To reflect the financial position of subsidiary companies accurately at the time of acquisition
What is the significance of understanding 'Audit Considerations during the Audit of Consolidated Financial Statements'?
To identify risks and material misstatements at the consolidation level
What does the responsibility of Parent and Auditor in Consolidation of Financial Statements primarily involve?
Ensuring the accuracy and completeness of consolidation adjustments
What knowledge is essential for interpreting SA 600 'Using the Work of Another Auditor'?
Understanding of how to evaluate audit findings and conclusions
Why is it important for auditors to recognize the manner of Current Period Consolidation Adjustments?
To adjust for significant events occurring after the acquisition date
What did CA Vikram notice during the planning of the audit that led to his inquiry about the consolidation of financial statements?
The acquisition of shares in a US-based company by the Indian company he was auditing
According to Section 129 of Companies Act, what triggered the requirement for the financial statements of the Indian company to be consolidated?
Acquiring all shares of a US-based company
In accordance with Ind AS 110, when should the results of the operations of a subsidiary be included in the consolidated financial statements?
From the date on which the parent gained control of the subsidiary
What dilemma did the management face when preparing their consolidated financial statements for the first time?
Deciding whether to consolidate for the whole year or from the date of acquiring shares in a foreign subsidiary
According to Ind AS 110, what should a parent do when presenting consolidated financial statements?
Consolidate all subsidiaries, domestic as well as foreign
What is the implication for including unaudited accounts of a component in group financial statements?
It affects the comparability and reliability of the financial statements
What does Ind AS 110 specify about including results of operations of a subsidiary in consolidated financial statements?
Results should be included from the date on which control is obtained
What caught CA Vikram's attention while auditing group financial statements prepared by the management?
The presence of unaudited accounts for a foreign subsidiary
Test your understanding of audit considerations, responsibilities of the parent and auditor, consolidation adjustments, and reporting requirements for consolidated financial statements.
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