Audit of Cooperative Housing Society, Maharashtra for FY 2019-20

This query is : Resolved

CA Shashikant Lonikar (Querist)
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22 August 2021 The Society land conveyance deed was executed in favor of the society on 01.Oct 2019 i.e. during the FY 2019-20.
The Land now becomes asset of the Society.

However, while preparing the financial statements, neither the Managing Committee nor the Auditor considered this fact to include this land as an asset of the Society. There are few more assets which are also not considered while preparing the financial statements.
When brought it to the notice of both, the auditor is of the opinion that this is a technical error and will be corrected in future years.
My question is that, does this amount to negligence on the part of Auditor? Can it be referred to disciplinary committee?
Thanks

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay

(Expert)
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05 November 2021 In my opinion, the negligence on the part of the auditor generally happens when there is non-compliance with the Code of Ethics. In the stated case, there was omission by the auditor who generally provides true and fair view regarding the financial statement.
While reporting the negligence, it is imperative to consider the audit procedures adopted by the auditor, the audit planning with evidences and also the materiality of the items not considered.