Newsletter Issue No 16-15th August 2011 - PKF Sridhar & Santhanam

Voice of Change
PKF SRIDHAR & SANTHANAM
Chartered Accountants
Confidential and for private use of PKF S&S and SRKB staff only
ISSUE 16, 2011
In this issue…
Partner Speaks…
CA Mythily.S
Quality Work Papers
CA. Venkat Anish Leburu
Celebrations
Shining Stars!
“The views expressed herein are those of the
authors of the article and do not represent the
views of the firm. This Newsletter is mainly for
educating the staff.”
Riddle Corner
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PKF
SRIDHAR & SANTHANAM
Chartered Accountants
Partner Speaks…
CA Mythily.S
mythily@pkfindia.in
Independance Day
Namaste indicates – we are not
two but one.
- Lyrics of the song from the
film Roja
“greed”, Cause of terrorism is
“anger/ hatred” & so on.
What is independence? –
Independence is freedom from
control, freedom from the
influence of others – that what
is not naturally ours. I perceive
individual independence as
freedom from what is not
naturally ours – our enemies
namely desire/ lust, anger,
greed, delusion/ attachment,
pride & jealousy. Getting rid of
these is essential for the feeling
of “oneness”
“Assam se Gujarat tak Bengal
se Maharashtra tak
Jaati kahi hum ek hain
Bhaasha kahi sur ek hai
Kashmir se Madras tak Keh do
sabhi hum ek hain
Aawaaz do hum ek hain
Jaago!”
Our songs of independence still
make so much sense to us, if
we know to understand it from
the right perspective. Our great
independence poets were not
just experts in language &
emotions but had deep-rooted
Indian philosophy in them –
every poem of Rabindranath
Tagore, Bharatiyar. Infact,
Tamil poet Bharathiyar has
sung calling the people to
rejoice on having attained
happy independence much
before our country was
independent from the British.
There is a lot of need today for
us to become independent of
our enemies & get to the feeling
on “Oneness”. Just ponder over
the many, many scams of
today- cause for these is “lust”,
Anything that promotes our
enemies is to be kept away, like
the British those days, bad
friends these days by
peacefully showing them the
way out of our lives.
Why is the celebration of this
day important? We celebrate
each occasion as a source of
renewing & refreshing our
beliefs, which have their roots
in our ancient philosophies,
which are ever applicable &
makes this country stand apart.
What is that belief? “Oneness”
For example, take our country’s
motto - “Satyameva Jayate”;
Look at the life of Gandhiji – he
lived for Truth; See
Rabindranath Tagore’s poem,
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SRIDHAR & SANTHANAM
Chartered Accountants
“where the mind is without fear”
it says- “Where words come out
from the depth of truth”. They
have sworn by the motto &
lived by it-it was part of their
DNA….is each of us there
today? My understanding of
truth can be explained better
with the help of an anecdote.
An American asked our Indian
swami- “American currency
note says- In God we trust” but
Indians seem so devoted but
don’t have anything in their
currency note…Our Swami
replied- “We worship currency
also as God, to us everything is
God & He is not someone
different”- “Oneness”
our enemies- kama, kroda,
loba, moha, madha, matsarya
& enjoy the peace & happiness
of the feeling of “oneness”. If
each of us becomes
independent, we will be
equipped to share this
happiness with the world
around us & thereby enjoy the
power & strength of “unity”. My
prayers to BharathMatha – Jai
Hind!
So, let us ponder over the
thought to be independent of
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SRIDHAR & SANTHANAM
Chartered Accountants
QUALITY OF WORK PAPERS…
CA Venkat Anish Leburu
venkatanish@pkfindia.in
The main goal of an internal
audit project is to add value and
improve an organization’s
operations. This goal is
accomplished through the
identification of control
weaknesses, potential process
improvements and positive
change opportunities. While the
organization, design and
content of audit work papers will
vary depending on the nature of
the engagement, several
important considerations are
necessary to the creation of
effective, high-quality work
papers.
WORKPAPER OBJECTIVE
Audit work papers should be
prepared to achieve four main
objectives:
• Documentation of the
planning, performance and
review of audit work.
• Provision of principle support
for audit communication such
as observations, conclusions
and the final report.
• Facilitate third-party reviews
and
re-performance
requirements.
• Provide a basis for evaluating
the internal audit activity’s
quality control program.
KEY CHARACTERISTICS
There are five essential
characteristics of high-quality
work papers that all document
preparers should consider
throughout the audit process.
• Completeness. Each work
paper should be completely
self-standing and selfexplanatory.
• Accuracy. High-quality work
papers include statements
and computations that are
accurate and technically
correct.
• Organization. Work papers
should have a logical system
of numbering and a readerfriendly
layout so a technically
competent person unfamiliar
with the project could
understand the purpose,
procedures performed, and
results.
• Relevance & Conciseness.
Audit work papers and items
included on each work paper
should be relevant to meeting
the applicable audit objective.
WORKPAPER ELEMENTS
Workpapers should include the
following key elements:
• Source. The name and title of
the individual providing the
documentation should be
recorded to facilitate future
follow-up questions or audits.
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SRIDHAR & SANTHANAM
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The document should
preferably be dated.
• Scope. The nature, timing,
and extent of procedures
performed should be included
on each work paper for
completeness.
• Reference. A logical work
paper number crossreferenced
to audit program
steps and issues should be
included.
The consistent inclusion of
these key work paper elements
on all audit documentation
improves the efficiency of
internal and external review
processes.
The above principles aid in
making of quality audit reports
as it helps in self-review.
Happy Auditing!!
• Sign-off. The preparer’s
signature provides evidence
of completion and
accountability, which is an
essential piece of any thirdparty
quality review.
• Exceptions. Audit exceptions
should be documented and
explained clearly on each
work paper using logical
numbering that crossreferences
to other work
papers.
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PKF
SRIDHAR & SANTHANAM
Chartered Accountants
Celebrations!!!
PRATHYUSHA M 01-Aug Chennai
SOWDEEPIKA V 01-Aug Bangalore
B.BHARGAV TEJ 03-Aug Chennai
SIVA KRISHNA REDDY N 07-Aug Chennai
VIJAYA KRISHNA RAJ. T 05-Aug Chennai
NARENDRA GANNAMANI 07-Aug Hyderabad
PREMCHANDER 08-Aug Chennai
PAWAN VERMA 09-Aug Chennai
ASHA JAIN 11-Aug Hyderabad
PAVAN KUMAR .A.N.U 12-Aug Hyderabad
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SRIDHAR & SANTHANAM
Chartered Accountants
Shining Stars!!!
• Kudos to R S Sriram for the good work done in an assignment relating to water defalcation
issue
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PKF
SRIDHAR & SANTHANAM
Chartered Accountants
Riddle Corner.
Thanks to Web
• Four men sat down to play. They played all night till break of day.
They played for gold and not for fun. With separate scores for everyone.
When they had come to square accounts, they all had made quite fair amounts.
Can you the paradox explain? If no one lost, how all could gain?
• What’s everything to someone, but nothing to everyone else?
• I am related to the water, but I am not wet.
I am related with a shadow, but I am multi colored.
I am an illusion, but I show what is real.
What am I?
• I’m hard as a rock, and as light as a feather.
I’m passed on to one another.
Poor people need me, and rich people have me.
What am I?
• What 11-letter English word does everyone pronounce incorrectly?
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PKF
SRIDHAR & SANTHANAM
Chartered Accountants
Answers.
• They are all musicians!!
• Mind
• A Mirror
• Money
• Incorrectly
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