Seperate invoices on same name and same date

504 views 2 replies

Agnishwar Basu

Chartered Accountant

41 Points Joined February 2011

Sir/Madam,

I am working as an insurance surveyor... I found a case where my client's (sole propritorship, dealing in tobaccos) accounts were 'REJECTED' by the chanrtered accountant on the ground that there has been 6-7 separate and successive invoices raised on the name of some customers on the same date (but of different amounts). My client did this a number of times in his accounts and the chartered accountant 'rejected' his accounts saying that he has manipulated the accounts.

Is it possible to 'reject' somebody's accounts in such a way?? Or a qualified report could have beenmore appropritate?? My survey is hugely dependent on the report of the CA. Kindly give your suggestions..

Replies (2)

CA Ramsai N

Fresher

594 Points Joined October 2011

A audit report can be

1.Unqualified

2.Qualified

3.Discalimer of opinion

4.Adverse

depends upon auditor satisfaction and facts and information got from the client or from third parites (and other applicable accounting standards)

however, in this case auditor can get the confirmation of balances from third pary to ensure that no manipulation takes place . If the client unable to provide such confirmation, auditor can express qualified opinion.

But auditor shall give his opinion under Sec 227(2). He can't reject in such manner