FUNDAMENTALS OF TAXATION AND AUDITING

FUNDAMENTALS OF TAXATION AND AUDITING
AREA OF STUDY: CORE
BAC210

Year: 3
Semester: 5

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* Continuous
** Duration: 3 hours

Objectives: The basic objective of this course is to provided the students with the basic concepts of taxation and auditing
Part A: Taxation
1. Taxation: concept, types and implication of taxes in National Economy LH 4
2. History of Income Tax Law in Nepal; Income Tax Act, 2058 LH 4
3. Incidence of tax, type of assesses; Basis of charge, Residential status LH 4
4. Value Added Tax: Principles and its application in Nepal. LH 3
Part B: Auditing
1. Introduction: L.H.8
Origin, nature and scope of auditing; Objective of auditing; Advantage of an audit, Accounting, auditing and investigation; Evolution of auditing in Nepal; Classification of audits: private audit, government audit, internal audit, statuary or compulsory audit, partial audit, balance sheet audit, cost audit, Management audit, Operational audit, Interim audit, cash audit.
2. Auditor's Report: L.H.4
Meaning of audit report; contents of audit report; Statutory duties of an auditor for the contents of auditor's report; General and qualified report.
3. The auditor: L.H.3
Rights, duties and liabilities of an auditor, legal position of an auditor
4. Cost audit: L.H.6
Introduction; Definition of cost audit; Objective of cost audit; Advantage of cost audit; Criticism against cost audit; Distinction between cost audit and financial audit; Cost audit report.
5. Government audit: L.H.6
Concept, objective, nature of government audit in Nepal; Distinction between the government audit and commercial audit; Appointment of auditors of government companies; Role of auditor's general in government audit in Nepal.
6. Investigation: L.H.6
Introduction; Essentials for investigation; Definitions; Characteristics of investigation; Difference between investigation and audit; Objective of investigation.
Suggested Reading:
1. Income Tax Act 2058: HMG Ministry of Law and Parliamentary Affairs
2. Income Tax Rules: HMG Inland Revenue Department 2059
3. Rup Khadka: The Nepalese Tax System 2001: Sajha Prakashan, Kathmandu
4. Value Added Tax Act, 2052: HMG Ministry of Law & Parliamentary Affairs
5. Value Added Tax Rules: HMG Inland Revenue Department 2053
6. Bidya Dhar Mallik Nepalko Adhunik Aayakar Pranali: 2060
7. Pushpa Raj Kandel, Nepalko Bartaman Kar Byabastha: Buddha Academic Enterprises Pvt Ltd. Kathmandu 2060
8. Pushpa Raj Kandel, Tax Laws & Tax Planning in Nepal: Buddha Academic Enterprises Pvt Ltd. Kathmandu 2004 2nd Edition
9. T.R.Sharma Auditing: Sahitya Bhavan Agra
10. Walter W. Bigg Practical Auditing:, Allied Publiusher Ltd, NewDelhi
11. Finance Acts: published each year by HMG
12. Nepal Company Act 2053: HMG Ministry of Law & Parliamentary Affairs