Audit report qualification

Anil (1638 Points)

30 May 2014  

A private company is supposed to register itself under Shop & Establishement Act. But it has not done so. Instead in the books it has provided as liability – Registration fees and penalty payable to the department as payable to government concerned department under current liability. The questions in this context are:


  1. Should statutory auditor qualify his audit report.? What should be the wordings for qualification?

  2. If the report is not to be qualified, should this matter be reported in notes to accounts. IF yes, what should be the wordings for the notes?