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Auditors opinion

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sumit koticha

practice

22 Points Posted on 21 April 2014

Dear Professional friends,

Statutory Auditor of a company have come across certain expenses for which the company can not produce any external evidences of the expenses incurred and the said expenses altogether is substantial part of total expenses.

My question is where in the auditors report should the auditor report the above matter?

and is it necessary to highlight the same?

Replies (1)

CA Saroj Kumar

Keen to learn something new every moment

2160 Points Posted on 22 April 2014

Yes ofcourse sir The auditor must report that ...even as per materiality concept there is requirement to report that.

For this purpose yu can obtain a MRL (Management Representation Latter) that they have unabe to produce any supporting to the expenditure....bcs it may possible that in upcomming period they arrange fake supporting so must require to keep ur working supporting...