16 October 2008
A sick company has not provided for interest expenses of March month in its books of account.All other expenses have been provided on accrual basis.Whether a auditor is required to qualify his report. if yes. in what manner
16 October 2008
Amount of interest,effect of the same in the repoted profit/loss,effect of the same in reserves and surplus/debit balance in p&l a/c and effect of the same in unsecured loans/secured loans may be disclosed by way of a note. Referance of this note may necessarily contain in the main report. Another note also should be given stating that the company follows accrual concept except for interest expenses(give details ).
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