Monthly Archives: May 2016

How to know if Audit evidence are reliable?

All audit evidence are deemed reliable. Audit evidence should be sufficient and appropriate. Auditor’s should acquire accounting records and reliable information. Compare different audit evidence: Outside sources evidence are more reliable than internally generated audit evidence because they are persuasive rather … Continue reading

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VAT Amount Calculation

a. Given Amount; Sales or Gross Receipts. Sales or Gross Receipts before VAT. Purchases from VAT person before VAT. Sales, net of VAT. Purchases from VAT person net of VAT. Sales / Purchases from VAT person exclusive of VAT. FORMULA … Continue reading

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VAT Characteristics

VAT Charateristic Indirect Tax – to be borne by consumers and the sellers are merely acting as tax collectors. It follows destination principle. It means that VAT will be imposed on transaction of goods or properties intended to be consumed … Continue reading

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Computation of Donor’s Tax

Donor’s tax calculated on a cumulative basis over a period of one calendar year. On the First Donation: Gross Gifts                              xxx Less: Exemption       … Continue reading

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Donor’s Tax

Donor’s Tax Is not a property tax but one which is imposed on the transfer of property by way of gift intervivos. Not apply unless until there is a completed gift. Essential Elements; Capacity of the Donor Donative Intent Delivery … Continue reading

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Estate Tax of NRA

Application of Estate Tax to Non Resident Alien: Only properties of  non resident decedent situated in the Philippines are subject to Philippine Estate Tax. Determination of Gross Estate will depend whether there is reciprocity or not, if there is reciprocity … Continue reading

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Professional Skepticism

Professional skepticism is an informed decisions and implemented on the following: Determining materiality and used for attesting audit risk. Determining the nature, timing and extent of audit. Evaluating Management decisions. Evaluating sufficient audit evidence. Forming audit conclusions. The auditor should … Continue reading

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