23 June 2016
Not really. In addition to Companies Act, BPT Acthas specified some format for audit.....e.g. Form 35 Also it has suggested formats for Balance Sheet and Income Expenditure account.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
23 June 2016
Is it true that per the BPT 1950 the responsibility of drawing up the Balance Sheet and Income/Expenditure Account lies with the appointed Auditor. That the Trustees have only to produce all contracts, bills, vouchers etc as also the Cash Book/ Ledgers to the Auditors and they have to see that the Trust has been financially managed properly or Report to the Charity Commissioner.(Sections 31-34 of the Act & Rules framed therein)
23 June 2016
No. that is not correct. The responsibility to prepare accounts is NOT that of AUDITOR. But yes, by going through form 35, one can notice the additional responsibility as to reporting is cast on to the heads of AUDITORs.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
23 June 2016
Sir Amol Joglekar. With due respects I must say that if 2/3 Trustees want to defraud the Trust they can fabricate the Balance Sheet and I/E Accounts and produce to the Auditors (who more often than not, send Article Clerks to do the checking). If the fraud is not found out by these greenhorns then the racket gets multiplied.I have just found out one such case hence asking for clarification. My reading of the BPT Act 50 places the onus on the Auditors
25 June 2016
can you please send me the said reading? I would love to go through the same as well as your views of interpreting the same in the said manner. Being a resident and ordinarily resident of Pune, the educational city of India, which has maximum number of educational TRUSTs formed under BPT, I had an opportunity to handle such cases. So, pleasee if you dont mind, send the said reading through CA club or.....my e mail id amolshankar@gmail.com... (Please quote the reference of CA club of india in subject so that it wont go to SPAM folder)
Querist :
Anonymous
Querist :
Anonymous
(Querist)
28 June 2016
Have extracted and sent you the Chapter V of the Bombay PTAct 1950 with special reference to Section 34. Would appreciate your comments as we have a problem currently in front of us where the original Auditors (appointed by the GBody) resigned halfway through the Audit when they found a period in the Accounting year where vouchers and receipts were fabricated (and signatures put in scrawl form). Thereafter the MC made an appointment of another firm of CA who did the Audit but claim they just made their BS and IE statements on what was produced- saying they not "detectives" to ascertain if there was hanky panky (this in spite of warning them verbally). Members are at their wits end.