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Difference in Party Ledgers Audited

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SHIV KUMAR

Co-Founder of Sublime Associates

182 Points Posted on 15 May 2021

Hello all

Dear Sir/Mam

I recently joined a new company their is huge difference in Sundry Debtors its about 70 lac.The main problem is their this is the balance sheet of FY 2019-20 and already audited and many DR. Balances audit as a CR balances .

kindly suggest me how can I settle these accounts

Replies (2)

Quick Summary

A new employee has discovered a significant £70 lakh discrepancy in Sundry Debtors for the FY 2019-20 balance sheet, where several debit balances were audited as credit balances. While the previous financial statements are already audited and cannot be rectified, the advice given is to obtain debtor confirmations and communicate with the previous auditor. Any remaining differences or disagreements should be noted in the current audit report, with rectifications to be made in the FY 2020-21 accounts.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 15 May 2021

You should obtain debtors confirmation balances to check the accuracy of the balances of books of accounts. You have to communicate with the previous auditor who audited the statements and in case difference in opinion, you should adverse the opinion in audit report. You cannot rectify the already audited financial statements. You can rectify the financial statements in FY 2020-21

SHIV KUMAR

Co-Founder of Sublime Associates

182 Points Posted on 17 May 2021

Originally posted by : SHIV KUMAR
	Hello all Dear Sir/Mam I recently joined a new company their is huge difference in Sundry Debtors its about 70 lac.The main problem is their this is the balance sheet of FY 2019-20 and already audited and many DR. Balances audit as a CR balances . kindly suggest me how can I settle these accounts