Treatment of difference found between external confirmations recieved after finalisation of accounts in current year

This query is : Resolved

Rajat Bansal (Querist)
Follow

04 October 2013 hello sir we have asked the company to confirm debtors and creditors balance externally but they said that they will send confirmations after finalization of accounts and now difference is found between balance externally confirmed by parties and it is material.....what effect we can give of this in accounts? ?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

04 October 2013 First confirm why the differences having reasons for difference and decide is the mistake is in the side of the company or from the side of the parties means it is companies mistake or parties mistake then we decide what we do.

However as on auditor if auditor feels confirmation of balances from parties then must and should be he get such confirmation before to completion of audit(means issuing of audit report) or he has to issue audit report by qualifying as "we issued audit report subject to the external confirmation of the parties balances".

So first make an excise what is differences and the who committed the mistake then we decide what to do.

OM SAI SRI SAI JAI JAI SAI

Message likes : 1 times

Rajat Bansal

Rajat Bansal (Querist)
Follow

17 October 2013 Mistake is on part of company and we had already qualified the debtors/creditors in our report. But i want to confirm that what can we do with that confirmations in current year audit of the same company

Upgrade to CAclubindia Pro. Subscribe Now!