The auditor mistakenly did not report all the transaction of one bank account last year.
Now my question is how to report the transaction of that bank account whether in current year or by adjusting the opening balance.
What the new auditor have to write regarding this bank a/c in the notes to accounts
whether this will have any impact in form 3cd
First of all Completeness of Bank accounts is a very important aspect of audit. Previous auditor should have done few basic chacks
1) Inquire with the client about bank accounts and use of such account
2) Corrobrate such info whie testing other areas e.g sales,payables,receivables.As second impact of bank has to be against these accounts
3) Read minutes for addition,deletion of Bank accounts.
Coming to your point based on materiality of transactions you should decide whether to restate opening balance or adjust in current year.
CAclubindia
