what should an auditor comment where a companies cash balance is Rs 4 lacs although its requirement is only Rs 50,0000?
2 Replies
CA Akshat
(article)
(422 Points)
Replied 26 April 2008
first of all, what amt is required for the company for day to day transaction is to be decided by management. Its not auditor's responsibility.
Although the auditor feels that the cash balance is excess than requirement, the auditor should increase the substansive proceedure and should satisfy himself that there is no fraud or error as there are lots of chances of fraud when excess cash balance is there.
However, he may rely on internal control proceedure also...
There is no requirement of qualified audit report he can just commnicate this report but, its not compulsory
hope the query is resolved
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
