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Can auditor sign the financials of preceding 2 years financial statements

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Abdul Rakeeb Vavalam

CA in Practice

21 Points Posted on 12 May 2021

I have been recently qualified Practicing Chartered Accountant enrolled from 02-03-2021. I have been approached by a private limited to appoint me as an auditor of the company. However, their financial statement had not been audited since financial year 2017-2018 due to the dispute with a Non-CA accounting firm (Not an Audit Firm). Please let me know

1. Whether I can audit the Financial statement for the FY 2017-2018 to 2019-2020?

2. Can an Auditor appointed during the Financial Year 2021-2022, do audit for the preceding financial years, if the same has not been done on account of the aforementioned reason?

Replies (5)

Quick Summary

A newly qualified Chartered Accountant is seeking guidance on auditing financial statements for several preceding years (2017-2018 to 2019-2020) for a private limited company that hasn't had its accounts audited since 2017-2018. The user wants to know if they can undertake this audit as an auditor appointed in FY 2021-2022, especially given the previous non-audit by a non-CA firm. Responses suggest it's possible, but communication with the previous auditor is advised, and the company may need to compound defaults.

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 12 May 2021

On joining the company, you are qualified 100%.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 12 May 2021

Yes you can do audit. But for previous years you have to communicate with the previous auditor

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 12 May 2021

You can find out from Ministry of company affairs website for your required information. Proper and accurate compilation of financial information of a corporate and its disclosure, in a manner that is standardized and understood by stakeholders, is central to the credibility of the corporates and soundness of investment decisions by the investors.