Audit of financial statements/certification

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A chartered accountant questioned whether certifying audited financial statements as 'Prepared By' is appropriate, given their role is to express an opinion, not prepare the statements. The consensus is that this practice is incorrect and constitutes a violation of the Companies Act 2013, ICAI guidelines, and professional misconduct.

k.v.subrahmanyam

k.v.subrahmanyam (Querist)

15 June 2021 Respected sirs
A chartered accountant, being the statutory auditor of the company, is certifying the audited financial statements as ' PREPARED BY". In the audit report the reporting was, I quote, " The preparation of financial statements is the responsibility of the management. Our duty is to express our opinion on it". But on the statements the certification was" PREPARED BY". MY questions are
1. Can a practicing chartered accountant certify the audited statements as above?
2.Is it not violation of section 144 of companies act 2013?
3.Is it not against the guidelines issued by ICAI with regard to audit of companies?
4.Is the chartered accountant guilty of professional misconduct?
Kindly advice
Subrahmanyam

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

15 June 2021 1 He can't certify the audited statements as above.
Right certification is " The preparation of financial statements is the responsibility of the management. Our duty is to express our opinion on it".
2 yes, it's violation.
3 Yes, it's against the guidelines issued.
4 yes, he is.

k.v.subrahmanyam

k.v.subrahmanyam (Querist)

16 June 2021 Sir
Thank you very much for your reply.
subrahmanyam

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