Statutory Audit
This query is : Resolved
27 May 2010
Dear Sir,
Whether a company is not maintaining a Fixed Assets Register from the date of incorporation itself, What is the duty of Auditor with regard to Physical verification of Fixed Assets?
Company's Turnover during the year Rs. 30 crores, Fixed Assets 1.75 Crores, Loan from Financial Institution Rs. 50 lacs
Query:
1. What is the reporting requirement under CARO and Section 227?
2. How should the Auditor frame the report with regard to Non-maintainence of Fixed Assets register, and physical verification?
Whether a company is not maintaining a Fixed Assets Register from the date of incorporation itself, What is the duty of Auditor with regard to Physical verification of Fixed Assets?
Company's Turnover during the year Rs. 30 crores, Fixed Assets 1.75 Crores, Loan from Financial Institution Rs. 50 lacs
Query:
1. What is the reporting requirement under CARO and Section 227?
2. How should the Auditor frame the report with regard to Non-maintainence of Fixed Assets register, and physical verification?
29 May 2010
Dear Yasil,
So far the maintenance of Fixed Asset register and physical verification of Assets is concerned, there is a Disclosure requirement in CARO (Point-i(a) and (b)) regarding the maintenance of proper records and physical verification of assets by the management;
The Auditor bears the responsibilty to report that only;
However,If there is a doubt regarding the physical existense of the assets the Auditor can suitably qualify its report becuase in that case financial statements will not give a true and fair view.
Feel free for further discussions.
Thank You
So far the maintenance of Fixed Asset register and physical verification of Assets is concerned, there is a Disclosure requirement in CARO (Point-i(a) and (b)) regarding the maintenance of proper records and physical verification of assets by the management;
The Auditor bears the responsibilty to report that only;
However,If there is a doubt regarding the physical existense of the assets the Auditor can suitably qualify its report becuase in that case financial statements will not give a true and fair view.
Feel free for further discussions.
Thank You
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
