15 months audit

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A company is requesting a statutory audit for a 15-month period, in addition to their standard annual audit. While companies typically follow an April-March financial year, this request is due to an upcoming takeover. It is permissible for auditors to conduct such an audit, and it's common practice for companies to undergo due diligence during takeovers.

Gudipati Roja

Gudipati Roja (Querist)

06 March 2021 Hi,

Can a statutory auditor conduct audit for 15 month period at the request of client. If so what are the tax & legal consequences??
Generally everytime we conduct audit for accounting year of 12m April to March.
This assignment is in addition to it.

CA Prachi Bafna

CA Prachi Bafna (Expert)

08 March 2021 every company is obliged to have the financial year starting from 1st April to 31st March under the new companies act. The exception is only for newly incorporated companies.

Gudipati Roja

Gudipati Roja (Querist)

27 March 2021 Sir,
Here Financial year followed by company is same april to march. However, in addition to it, they are requesting for 15m period financials as it is being takenover by other company.

CA Prachi Bafna

CA Prachi Bafna (Expert)

31 March 2021 yes, it can be done. most companies carry out due diligence also

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