Cenvat credit cr. clo. bal. not matching with excise records

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 I am doing audit of a manufacturing company and have following issue in it:

"Clo. balance of Cenvat Cr. is not matching with the Cenvat Cr. as per excise records"

On discussion with the client, there is some possible mistake in Excise Return and claiming books of account is correct.

My query is that:
1. What figure to take as final for audit purpose.

2. Does i need to qualify the Audit Report stating specifically that Cenvat Cr. A/c not matching with Excise Records??????

I have mentioned in the notes to the accounts that "balance of statutory are subject to confirmation"

3. What extra precaution needs to take care in this matter?

Please guide in details as soon as possible.

Thanks in advance

Ram Avtar Singh

Ram Avtar Singh (Expert)
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20 September 2011 Kindly find out error and give in notice to the person who is looking excise. he will correct it as per sale and purchase record. if return file wrong he will write a letter to AO and AO will correct Excise return.

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 But sir what will be our position regarding as the auditor of the firm???

What we will do if the same is not corrected by the assessee till the due date of audit?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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20 September 2011 party can take action for correct it now time is not over. you will co-operate with party. and also with govt. its duty of auditor to find out error and correct at your end. if party disobey then disclose in your audit report.

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