Over the last 4 years, statutory auditors are giving adverse/ qualified report on accounts- one common issue. The same audit report-AOC4 is being uploaded on MCA portals as well. So far, nothing from MCA side. Is there any risk? Audit team simply mentions the same point and escapes . Mgt also accepts it and no regularisation is attempted at.
Receiving adverse or qualified audit reports for four consecutive years can pose risks and implications for your company.
Although the MCA hasn't taken any action yet, it's essential to address the issue to avoid potential consequences.
Risks and Implications
1. _MCA Action_: The MCA may take notice of the repeated adverse reports and initiate action, including penalties, fines, or even prosecution..
2. _Loss of Credibility_: Adverse audit reports can damage your company's reputation and credibility among stakeholders, including investors, lenders,
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