What options are available to a member when the RWA does not react to the following audit observations:-
1. That the accounts are prepared on cash basis and not on accrual basis?
2. When in response to audit observations on a balance sheet, the auditor responds by saying that the possiblity of a fraud in a transaction can not be ruled out.
I think that both of above are serious matters and there should be a rule that requires the RWA to take follow up action to satisfy memebrs that no fraud has taken place.
What are the applicable rules?
grateful for a clarification.
regards,
B
CAclubindia
