Quarterly Vs Annual results

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Shwetha (Querist)
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18 August 2010 A listed co is required to publish Quarterly results subject to Limited review of the statutory auditor of the co as per the Listing agreement with SEBI

I have heard that the variation between the Unaudited Quarterly results and audited annual results should not be more than 5 %.

My doubt is what will be the consequence if the variation exceeds the prescribed limit?

please clarify giving references and correct if i am wrong.

Thanks.

vrnanda

vrnanda (Expert)
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18 August 2010 Hi swetha,

to the best of my knowledge, management needs to give explanations substantiating the variation to the regulators.

Shwetha

Shwetha (Querist)
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18 August 2010 will the auditor be held responsible for it?

vrnanda

vrnanda (Expert)
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21 August 2010 hmmmmmm not exactly........ auditor is not doing any audit procedures for the purpose of the limited review.

he is only reviewing the information for the quarterly purpose.

and for your information, the difference will be computed normally once the auditor finalizes the accounts.

it is the management responsibility to hold good that position.

remember strictly, an auditor can never be responsible for the variation, he is only expresing his opinion on the financials based on certain procedures.

please read certain, limited review audit reports, and audit reports, and corporate governance report issued by the auditors.

it will give you so much of insight about the auditors' position.

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