if a company has not charged depreciation on its fixed assets then what are the auditor`s responsibities under the compliance of law.
is it compulsory for an auditor to qualify the report for non charging of depreciation on fixed assets?
or i mean to say what are the duties of an auditor with regards to auditors report.
YEAH HE SHOULD GIVE A POINT IN HIS REPORT REGARDING DEPRECIATION EVEN IF HE DOES NOT WANT TO QUALIFY THE REPORT...
Hi Harish,
If a company does not charge depreciation, as per CARO, 2003, sub to each AS auditor has to report regards the company, so regards depreciation he has to qualify his audit report as per AS-6. But usually depreciation is determined and computed by the auditor as per Companies Acts. So for certain companies this happens after which they close their books for each fin yr. But if auditor qualifies his report, from next yr it has to be accounted correctly... A qualified report does not speak for a Company... without charging depreciation true profit and loss cannot be computed for....
CAclubindia
