Hi frenz
There were two companies having common directors. one company has supplied goods to the other company. now, the (creditor ) company wants to write off the debtor company as bad debts, in this connection , whats the auditor position if such companies were (a)public limited company (b) private limited company?
Refer sectin 297 related party transaction.
If public company wants to write off pvt company as bad debt than its duty of auditor to check the wether the transaction was prejudicial & report the same
If pvt company wants to write off public company as bad debt than there is no such duty as the provision is applicble for pvt company director
CAclubindia
