Case Name: M.C. Mehta v. Union of India 1987 A.I.R. 1086 (Oleum gas leak case) Jurisdiction: Supreme Court of India Decided on: February 17, 1986 The bench of judges: CJI P. N. Bhagwati, G. L. Oza, D. P. Madon JJ What is the case about? In the case of M.C. Mehta v. Union of India…
Substantive procedures in Audit and their Types
We know that an auditor has to collect evidence in support of his opinion. The auditor obtains this audit evidence by using compliance and substantive procedures. While compliance procedures are those tests that seek to examine the efficacy of internal controls operating in the client’s entity, substantive procedures are tests designed to check the accuracy…
Methods of Obtaining Audit Evidence and their Reliability
Methods of obtaining audit evidence: Before jumping onto the methods of obtaining audit evidence, let us see what constitutes audit evidence and how an auditor determines it to be sufficient and appropriate. Audit evidence: Meaning During the course of an audit, the auditor comes across various assertions made by the management. He has to evaluate…
Strict Liability and Absolute Liability: A detailed guide!
There are some important rules when it comes to the law of torts. What type of liability can arise, who can sue and who can be sued under what circumstances? These aspects are all guided by certain rules. The concept of strict liability and absolute liability is of relevance here. Meaning of strict liability and…
Reciprocal Promises: All you need to know about!
Generally, we think that contracts involve a promise made by only one party. One party usually makes a promise to do something or to abstain from doing something in exchange for consideration. But many a time, it is found that both parties to an agreement make mutual promises to do something or to abstain from…
What are the Advantages of Cost Audit?
Cost audit and its advantages: We all know that audit involves verification and examination. Since books of account form the very basis for verification, it is often said that auditing begins where accounting ends. An audit is conducted to check whether the books of account present a true and fair view of the state of…
What are the Objectives of Cost Audit?
Cost audit and its objectives: It is now widely accepted that every type of accounting must be closely monitored by an appropriate auditing system. This is done primarily to check the credibility of accounts and to assess their reliability before they are used as a basis for various business decisions. Cost accounting is a critical…
Internal Check in Auditing: A complete outlook!
An internal check system can prove very valuable to any business. It is a system that helps to streamline the flow of work by proper allocation of job responsibilities among staff members. An auditor also looks into the effectiveness of the internal check system while performing his auditing work. In this blog, we have thrown…
Performance of Contract and its Related Provisions
It is well known that every valid contract imposes certain legal obligations on both the contracting parties and this obligation lasts until the contract is actually performed or otherwise discharged. The performance of the contract is one of the several ways through which a contract is discharged, and it is the most natural, preferred, and common way of…
Rights of Indemnity Holder in a Contract of Indemnity
Contracts of indemnity work towards saving a party from incurring a loss. One party makes good the loss suffered by another party. In this blog, we have discussed the meaning of indemnity contracts and the rights of the person who has been indemnified against a loss (rights of the indemnity holder). The timing when the…