5. What kinds of revenues does Prakash Bhalla’s company receive and What kinds of expenses might Prakash Bhalla’s company incur?
Bonanza Ltd. is a consultancy firm. Mr. Prakash Bhalla is a recently qualified CPA who has earlier worked in the auditing,
Prakash employed one staff. He and his staff cater to small business owners by keeping their books of accounts using Tally ERP 9, a computerized accounting system. On a periodical basis, he forwarded financial reports to his clients and advise them accordingly. He also looks into his clients’ system and offer services like establishing proper costing system and other important
As a registered public accountant, he also perform routine audits like interim and final audits to ensure that his firm, Prakash & Co can give an opinion on the clients’ financial statements. After completion of his interim audits, the firm would bill for reimbursements for expenses incurred and part of the agreed audit fee.
Refer to the case, and answer the following:
5. What kinds of revenues does Prakash Bhalla’s company receive and What kinds of expenses might Prakash Bhalla’s company incur?
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