Dear All,
I have received one balance sheet. The company has not complied with AS-15. The fact of the same has been mentioned as follow by the statutory auditor-
"In our opinion, the balance sheet and profit & loss account covered by this report complies with the accounting standards referred to in sub section (3C) of Section 221 of the companies act 1956 to the extent applicable except reported in NOTE-22, SIGNIFICANT ACCOUNTING POLICES & NOTES ON ACCOUNTS.
When coming to notes to accounts, the auditor has mentione about non-compliance of accounting standard-15 and further said that "its effect on financial statements can not be ascertained"
I wanted to know-
1) Whether Auditor can mention non-compliance as above? i.e. Just by saying "except reported in notes to account" or he should specifically mentioned about non compliance in the main body of audited report.
2) Whether the text "its effect on financial statements can not be ascertained" is sufficient or he must also give reason as to why it could not be ascertained.
Kindly do the needful.
CAclubindia
