if i find a loan (liability) or a loan n advance or a creditor or a debtor balance in the balance sheet and it is there for more than 3 years then as an auditor what will be my queries? will i consider it as bad?
3 Replies
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 13 June 2011
yes you can ask the query from the client
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 13 June 2011
for considering it as a bad proper procedure should be followed as per income tax act
kanagaraj
(CHARTERED ACCOUNTANT)
(793 Points)
Replied 18 June 2011
Dear Arundhathi,
Regarding the debtors you can write off as bad debts after a thoruough enquiry from the debtors confirmation letter. But for liabilities it is to be treated as income that is write back and shown in the income coloumn of the profit and loss account
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