A Private limited company is having huge cash balance at the year end, how to report that cash in balance in our stat audit report?
A Private limited company is having huge cash balance at the year end, how to report that cash in balance in our stat audit report?
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.
T R SOOD & CO
New Delhi
CA Inter
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SSGS and Associates
Chennai
CA Inter
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