M , statutory Auditors of ABC Ltd. wants to verify cash on hand as on 31 march 2014.
The management informs Mr. M that it is not possible to co - operate , as cashier has been hospitalized.
ADVICE MR. M , HOW TO DEAL WITH SITUATION.
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audit of a company
Replies (6)
Reconcile cash balance with ledgers from 31st March to till date and see whether it is matching or not.
Also obtain a Managment Representation Letter station cash balance as on 31st March.
Agreed with @ Sahil Sir and Contract entries and debtor and creditors ledger should be scrutinized properly.
Agree with CA Sahil sir. ...
what if he finds any misstatement with regarding cash balance?
should he qualified his audit report with regard to cash?
should he qualified his audit report with regard to cash?
Yes, he can qualify his report with respect to cash balances
Alternatively he can do the cash count after the balance sheet date and obtain adequate audit evidence for the movement in cash from year end date to count date
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