Please help me regarding following query.....
As per circular issued by Department of Companies Affairs--The rates of depreciation provided in Schedule XIV of Companies Act,1956 are the minimum rate.It means that Management can provide depreciation at the rate which exceeds the rates mentioned in schedule XIV. But it will result in creation of a Secret Reserve(Hidden Reserve) which will destroy the true picture of financial statment ( Objective of a Company Audit).So what an auditor should do in such case(i.e. if management provide depreciation at a higher rate).Please also provide legal cases,circulars in this regard if any.
Thanks & Regards
CAclubindia
