what should an auditor comment where a companies cash balance is Rs 4 lacs although its requirement is only Rs 50,0000?
Dilip Kumar (Qualified CA) (46 Points)
26 April 2008what should an auditor comment where a companies cash balance is Rs 4 lacs although its requirement is only Rs 50,0000?
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
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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