Provision for Audit fees ?

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Vijay Parmar (Querist)
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16 July 2010 one ltd company incurred current year loss. hence company does not provided provision for audit fees ???

its correct ???

or compulsory to provide audit fees provision ????

Srikant

Srikant (Expert)
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16 July 2010 No.
Its not Correct.
Provision has to be made, specifically where the Company is required to do Audit.
Irrespective of LOSS.

See also application of CONSERVATISM Concept.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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16 July 2010 AGREE WITH SRIKANTH JI

Rahul Gupta

Rahul Gupta (Expert)
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16 July 2010 Agree with Experts. Audit Fees is an expense. In case, audit is required to do, then fees need to be paid. It is not in wanyway related to loss.

Abhishek

Abhishek (Expert)
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15 March 2011 You need to make provision for all the expenses. Not only audit fees but all other expenses for the period need to be provided for even if the company is making loss...