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Querist : Anonymous

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Querist : Anonymous (Querist)
22 May 2015 Our Statutory auditor is asking for every working like:-
1.Reconcilation of st-3, tds return with books of accounts.
2.Related party transaction like amount of directors remuneration, sale made to sister concern during the year.

Our electronic software depicts every information still she require working from our side.
She has to report in notes to accounts or audit report whatever is the purpose but i just want to ask whether is it the CA profile ask the client to do the working and quote the figure in the report as it is.????????????Please reply

22 May 2015 You have to give whatever working asked by statutory auditor. After verifying the workings the auditor quote the figure in the report.

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Querist : Anonymous

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Querist : Anonymous (Querist)
22 May 2015 Tax Audit Report is filed by CA and departments requires information about an organisation from a CA.
Point 34(a) of 3CD which required detailed working of TDS she is also asking for that from us to quote in 3CD is she right in asking this info from client itself????????




22 May 2015 Yes she is right in asking this from client but she has to verify it and then only it can be quoted in 3CD.

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Querist : Anonymous

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Querist : Anonymous (Querist)
22 May 2015 But she is saying she is unable to do such cumbersome working in software with voluminous data thats'why asking........
What is the need of CA if everything is to be prepared by client itself .?????

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Querist : Anonymous

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Querist : Anonymous (Querist)
22 May 2015 I have also done audits while i was working in a CA firm although and each and every point in 3CD or the working required for something else by done by our me and my seniors itself we never ask any working from client to be quoted in such statutory forms...

22 May 2015 Need of CA is for checking the correctness of data provided by you and reporting. If the data is voluminous how can she be able to prepare the statements. You need to help your auditor in preparing statements.
In our company having voluminous data help the auditors in preparing the statements by the company.

22 May 2015 In small companies CA will prepare and add it in their report. In case of big companies we should help the auditors in preparing statements.




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Querist : Anonymous

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Querist : Anonymous (Querist)
22 May 2015 Surprisingly we ourselves prepare the Balance Sheet they just put an stamp on it.

Further i was ready to assist her about how to retrieve information from software related to related party transactions.

She is an alumni of E & Y and using such words:-

"If the work is so simple then please do yourself and give me information i have more experience in audit than you i am a CA"

I am also a CA may be i couldn't get such high exposure liker her in E&Y but such kind of harsh words dosen't seems professional.


22 May 2015 It is the responsibility of the company to prepare financial statements including balance sheet. The responsibility of auditor is only reporting on the financial statements.

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Querist : Anonymous

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Querist : Anonymous (Querist)
22 May 2015 Thanks and what about Notes to accounts and CARO report and 3cd these too are to be prepared by client itself???????

22 May 2015 Notes to accounts to be prepared by the company.
CARO report and 3CD to be prepared by the auditor. But we should help the auditor in providing information/workings for the preparation of reports.




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Querist : Anonymous

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Querist : Anonymous (Querist)
22 May 2015 like any loan taken by the company during the year and amount of director remuneration paid during the year as they are not able to retrieve this data from software right????

22 May 2015 Those statements has to be prepared by the company and given to the auditor. For checking the data they may use it.



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