Rashmi
Quick Summary
Introduction The National Financial Reporting Authority (NFRA) recently issued an order highlighting significant deficiencies in the audit conducted by CA Rakesh Puri, who served as the Engagement Partner (EP) for the statutory audit of Sun and Shine Worldwide Limited (SSWL). The investigation, i
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FAQ :
The NFRA order highlighted significant deficiencies and material misstatements in the audit conducted by CA Rakesh Puri for Sun and Shine Worldwide Limited (SSWL).
The financial years under scrutiny were 2012-13 and 2013-14.
A major lapse was the failure to investigate a staggering 1026% increase in revenue from operations between 2012-13 and 2013-14, which should have raised red flags.
No, the audit file lacked evidence of verification of transactions through brokers, exchanges, or bank reconciliation, and contract notes with the sole broker were not properly checked.
The NFRA order emphasised the critical importance of adhering strictly to auditing standards, exercising professional skepticism, understanding the entity being audited, proper audit planning, and complying with preconditions for the audit.
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