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Fixed Deposit balance not matching with Bank - Audit

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Samarth

Chartered Accountant

25 Points Posted on 28 June 2023

Hi everyone,

If during Audit you find the closing balance of Fixed Deposit as on 31 March shown in books is different from Bank Certificate by a significant margin, how to deal with it in Audit Report? Will it be correct to give a modified opinion, if so?, whether Qualified or Adverse?

Please let me know your thoughts.

Regards,

Replies (2)

Quick Summary

This audit discussion centres on a significant discrepancy found between the company's Fixed Deposit closing balance and the bank's certificate. The issue stems from the opening balance, which also doesn't match the bank's records, indicating potential prior audit oversights. The core question is how to report this material misstatement, specifically whether a qualified or adverse opinion is appropriate in the audit report, given the mismatch impacts the financial statements.

sabyasachi mukherjee

Profession

19978 Points Posted on 28 June 2023

How can that be .
computer interest and then revert back.

Samarth

Chartered Accountant

25 Points Posted on 29 June 2023

Hi, so this is the first year of audit taken up by us. The previous auditor did not check correctly and did a poor job of verifying the closing balance with the bank and it does not match with the bank. He was asked to resign due to his poor work and we were appointed in his place. Accordingly, our issue is actually from the opening balance which does not match with bank balance. We found this at the end of audit and now we want to know whether to modify our opinion.

Our current year interest computation and TDS is matching correctly with bank.