Can a statutory auditor undertake the work of Fixed Asset verification and preparing FA register of a private ltd company?
Please advice.
chandan_ch (24 Points)
15 January 2012Can a statutory auditor undertake the work of Fixed Asset verification and preparing FA register of a private ltd company?
Please advice.
Rengasamy.R
(CA Final)
(228 Points)
Replied 03 February 2012
Yes, Stat Auditor can do so, if it is scope given to them.
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 03 February 2012
Hi Guys,
IN MY OPINION –
Fixed Asset verification and preparing FA register are two different aspects.
Former is related to audit procedures which are applied by stat auditor to obtain sufficient appropriate audit evidences and
later one is related to accounting purpose which is the responsibility of management.
In short, one is audit and another is accounting.
As per Clause 4 of Part 1 of Second Schedule to CA Act, STAT AUDITOR CANNOT WRITE ACCOUNTS OF HIS AUDITEE CLIENT. Hence, stat auditor CAN undertake verification of FA but CANNOT prepare the register for same.
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