CONSULTATION PAPER DATED 29th SEPTEMBER 2021 OF NFRA IS OPPORTUNITY TO TELL THE WORLD ADVANTAGES OF AUDIT TO EVEN SMALLEST ENTERPRISE
The COVID 19 pandemic has bought unprecedented changes and uncertainties in the in the business environment. It had disrupted lives / labour force, business operations, insolvency risks, resulted in inflation and supply chain.
In case, NFRA takes any drastic decision to exempt the need for statutory audit of MSME companies for any reason, the size of frauds would go up and the Indian economy will be in the doldrums.
Removal of Statutory audits on MSMCs might facilitate frauds and misstatements since GST and Tax audits have been scaled down. Moreover, minority interest in companies will be affected.
If Statutory Audit is exempted then there will be no check on business transactions and such exemption will lead to an emergence of spurious companies within MSMCs.
Audit is the activity of evolution and determine the financial, operational and strategic goals and exercise in an organizations to decide if the organization is in accordance with the rules and regulations.
Balance Sheet finalization is the most important work that needs to be done for Statutory Audit. Discussing all the important points that need to be taken care of before finalization of the balance sheet.
Let us discuss how to appoint an auditor in casual vacancy in an OPC
'Turnover', 'Gross Receipts' and 'Sales' are the buzzwords during this Tax Audit season. Incidentally, they are the very starting point of a Tax Audit. They form the qualifying criteria, determine whether a taxpayer is liable to tax audit during a given year.
Beneish Model is a statistical model created by Professor Messod D. It is a model that studies the trend of the organisation through various ratios. This model is based on eight financial ratios.
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