07 May 2009
Nobody has given the right to Auditor/Management to write or include such statement in the Auditors Report. Actually it is "Obligation" on their(auditor/management) part to state whether the balances shown under the head Debtors/Creditors are confirmed with them or not.e.g If Rs.1 lacs is shown under debtors but the debtors is denying it,then this would show a wrong picture to the shareholders. Hence, in order to give correct information, if the balances are not confirmed it is shown by way of note as mentioned by you.
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