How does a stock exchange function?

As per Securities Contract Act, 1956 a stock exchange is an “association, organisation or body of individuals whether incorporated or not, established for the purpose of assisting, regulating and controlling the business in buying, selling and dealing in securities. Therefore stock exchange is a place where securities issued by companies are listed and traded. The […]

How do companies decide on the amount of dividend to be paid?

Dividend decisions made by the board of directors and are approved by the shareholders at the general meeting. However, the board of directors are bound to decide the amount of dividend in such a way that it will maximize shareholders wealth and will not affect the long term financing needs of the company. Dividend policy […]

SA 210 -Agreeing to the terms of audit engagement

SA 210 – Agreeing to the terms of audit engagement Engagement letter is a letter written by the auditor setting out the terms of the engagement and it’s to be signed by the client. Auditor should not change the engagement letter unless there is a reasonable justification in doing so. If it is not justifiable, […]