Audit comment

Hi Naresh,

IN MY OPINION - In case of Company, having a huge cash balance is not a query in itself. If you (as a stat auditor) has identified any risk of material misstatement in it, then you have to report your query in regular manner. Regular manner means your observation / qualification should form part of your report and not the part of any notes to accounts etc.

If you wanna qualify your report, then you can refer either Clause 8 of Part I of Second Schedule to CA Act

OR Gudelines issued by ICAI in this regard which Auditor shall refer while qualifying his report.