Quick Summary
In a recent development, CCM Dhiraj Khandelwal has addressed the concerns on 'X' surrounding the NFRA order imposing a significant penalty on Audit Firm M/s Dhiraj & Dheeraj. Amidst the controversy, Khandelwal provides a detailed clarification, shedding light on the facts and nuances of the case.
Key Points from Khandelwal's Statement
- Difference of Opinion on Audit Opinion: Khandelwal emphasizes the divergence between the adverse opinion as per NFRA and the qualified opinion as per the auditor, highlighting the subjective nature of the issues involved.
- ECL Provision Judgment: The adequacy of the Expected Credit Loss (ECL) provision judgment on standard loan assets, including overdue loans, is identified as a judgmental issue, underscoring the complexity of the matter at hand.
- Audit Planning Meeting: Issues regarding the timing of the audit planning meeting between the NOC requested from the previous auditor and the one received are raised, suggesting potential procedural discrepancies.
- Agreement on Audit Issues: Khandelwal mentions an agreement between EP and EQCR on significant audit issues after detailed discussions, albeit lacking documentation, indicating a need for clarity in communication protocols.
- Resigned Auditor's Reports: The discrepancy between a clean report issued by the resigned auditor in previous years and periods before filing under section 143(12), and a qualified report, is highlighted, raising questions about the consistency of audit findings.
- Qualified Report on Previous Transactions: Khandelwal addresses the issuance of a qualified report for all loans sanctioned and disbursed before appointment, juxtaposing it against the unmodified opinion issued by the previous auditor, suggesting potential inconsistencies in assessment criteria.
In addition to addressing the specifics of the NFRA order, Khandelwal reminisces about his longstanding opposition to NFRA, reflecting on his past involvement in council and a detention by Mumbai police due to protest actions.
This clarification offers valuable insights into the intricacies of the case, underscoring the need for a thorough examination of audit processes and regulatory frameworks.
FAQ :
ICAI Central Council Member Dhiraj Khandelwal has clarified the NFRA order.
The NFRA order imposed a penalty of Rs 1 crore on the audit firm M/s Dhiraj & Dheeraj.
There was a difference between the adverse opinion from NFRA and the qualified opinion from the auditor regarding audit findings.
The adequacy of the Expected Credit Loss (ECL) provision judgment on standard loan assets, including overdue loans, was identified as a judgmental issue.
Yes, a discrepancy was noted between a clean report from a resigned auditor in previous years and a qualified report issued later.
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