audit qualification

This query is : Resolved

paresh zatakia (Querist)
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06 August 2009 Dear Colleagues,

ABC P.LTD was incoporated in joint venture with a foreign group.In June,2008,foreign group exited and consequently name of the company was changed to XYZ P.LTD.in June,2008(all ROC formalities duly complied with)

On audit I found that sales & purchase invoices are still continuing in the old name i.e.ABC P.LTD.

How I should qualify the audit report ?

regards
c.a.paresh zatakia

Abhishek Mohta

Abhishek Mohta (Expert)
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07 August 2009 Mr. Paresh,

This action of company is not falling under teh category of qualification o faudit report.

Sometimes it happens that the Goodwill of the old company is so uch that the acceptance of the new name can create confusion in the minds of the suppliers and customers.

This change in the name is notified to the parties and the changes are carried out in a phased manner.

You can smply insist on to your client to take quick steps to phase out this change and start using the new name of the company in the invoices send or received.

Abhishek Mohta

Abhishek Mohta (Expert)
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07 August 2009 However, you should make sure that all the ROC documents and Income tax returns are filed in teh name of the new comapny.