23 July 2010
If (private/ public ltd. )company does not have fixed asset but have capital work in progress / property development rights in the Asset side of Balance Sheet during the close of financial year.
So, if still the auditor states in its standard auditor’s report the below mentioned clausein the annexure to the report , is the said clause by auditor ethically correct. (b)According to the information and explanations given to us,all the fixed assets have been physcially verified, at regular intervals by the management during the period,which in our opinon is reasonable having regard to the size of the company and the nature of its assets.No material discrepanices were noticed on such verification.
23 July 2010
The auditor has to state as follows:- According to the information and explanations given to us, the company has no fixed assets and hence comments on physical verification/discrepancies etc does not arise.
CAclubindia
