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Effects of Qualify Audit Report

CA Navin Jain (MANAGER (FINANCE & ACCOUNTS)) (11768 Points)

03 December 2008

What is major effcts of Qualify Audit Report?

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3 Replies

CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 03 December 2008

IT ATTRACTS THE ATTENTION OF USERS...................

CA Surajit Kashyapi (Chartered Accountant) (112 Points)
Replied 03 December 2008

No it is not for the attention of the users.

Company need to submit the final audited report to ROC (Statutory matter) Banks (For loans, stock audit), Investors (before AGM), Other bodies (Like CARE ect). This report goes to Tax Auditors, Other statutory tax departments like PF, ESI, P.Tax, Labour department etc as per requirement and nature of size of the Company. If a audit report will be qualified by auditor then ROC will ask question to Company in one hand and Company will face lots of obstacles from each department mentioned above.

CA Surajit Roy (Service) (89 Points)
Replied 04 December 2008

As u know circumstances & resons under which an auditor needs to qualify Audit Report.This implies that there are certain deviation,lapses, non-compliance in the statutoty matters, compursory norms,methods etc.

Qualifying these things will attract attention of readers(As Mr. Kashapi has cited) towards thse for whom the Audit Report is prepared.That's why such points are to be written in Bold and/or Italics.

I hope Navin Jain has no doubts.