Statutory Audit

Important Taxation amendments w.r.t. Tax Audit/Company Audit for FY 2019-20

Income Tax - Here’s a list of a few Important Taxation amendments w.r.t. Tax Audit/Company Audit for FY 2019-20: 1. The threshold limit of Rs 1 crore for applicability of Tax audit u/s 44AB(a) is increased to Rs 5 crore if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover and the cash […]...

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Role of statutory Auditor in NBFC-ND-NSI- ICC

Income Tax - This article mainly explains statutory auditor role in audit of ‘Investment and Credit Company – (NBFC-ICC)’  (earlier known as Investment/loan company)and having asset size below 500 crore as defined in Non-Systemically Important Non-Deposit taking (Reserve Bank) Directions, 2016 as per Master Direction NBR.PD.007/03.1...

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Statutory Auditors Resignation from Listed Entities & their Material Subsidiaries

Income Tax - In recent times, frequent resignations by the Auditors raised eye brow often due to lack of co-ordination, non-availability of information etc. In view of the same, the SEBI has issued specific norms for procedure of Resignation as well as Appointment of Statutory Auditors for listed entity to hold accountability of outgoing as well as in...

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Rotation of Auditors under Companies Act, 2013

Income Tax - Article explains Manner of Rotation of Statutory Auditors under Companies (Audit and Auditors) Rules, 2014 read with Section 139 of Companies Act, 2013. A. Section 139(2) and Rule 5 of the Companies (Audit and Auditors) Rules 2014– Maximum term for appointment of auditors 1. In case of every listed company; 2. All Unlisted companies...

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Impact of Covid Shutdown on ICoFR for Statutory Audit of FY 2019-20

Income Tax - Uncertainty and it’s impact on the control environment Covid-19 brought in uncertainty. Working under the disruptively changed period of Uncertainty should drive you to review your Internal Controls. As we head into the Audit sessions for FY 19-20, Finance teams need to provide their Audit Committees, Boards and the Statutory Auditors c...

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Appointment of BSR as statutory auditor of IFIN for 2017-18 was illegal: NFRA

Income Tax - The appointment of BSR as the statutory auditor of IL&FS Financial Services Ltd. (IFIN) for the year 2017-18 was illegal, since BSR was not eligible to be appointed as such auditor due to violation of Sec 141(3)(e) (subsisting business relationships on the date of appointment) and Sec 141(3)(i) (provision of non-audit services directly or...

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Expert panel formed to address statutory bank branch audits queries

Income Tax - Auditing and Assurance Standards Board – Online Panel of Experts for Addressing Bank Branch Audit Related Queries for Financial Year 2019-20 – (02-05-2020) AUDITING AND ASSURANCE STANDARDS BOARD CONSTITUTES ONLINE PANEL OF EXPERTS FOR ADDRESSING BANK BRANCH AUDIT RELATED QUERIES FOR THE FINANCIAL YEAR 2019-20 Dear Members, The ban...

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Empanelment for Statutory Audit of various units of ICAI

Income Tax - Notice Inviting Expression of Interest for engagement of Chartered Accountants Firms for Statutory Audit of various units of the Institute of Chartered Accountants of India (ICAI) [Announcement No. EOI/SA/2020-21 Dated 29/03/2020] ICAI invites applications from eligible Chartered Accountant firms for appointment as Statutory Auditor for i...

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MCA proposes amendments to enhance Audit Independence & Accountability

Income Tax - The concept of Auditor independence requires the auditor to carry out his or her work freely, with integrity and in an objective manner. Though auditor is appointed by the shareholders, effective power of their appointment and dismissal lies with the management....

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NFRA founds Issues in statutory audit of IL&FS done by Deloitte

Income Tax - NFRA has issued Audit Quality Review report of the statutory audit for year 2017-18 of IL&FS Financial Services Limited. The statutory auditor for this engagement was Deloitte Haskins and Sells LLP....

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NCLAT dismisses pleas of IL&FS auditors Deloitte & KPMG against impleadment

Deloitte Haskins & Sells LLP. Vs Union of India (NCLAT) - Various acts  of IL&FS like over borrowing were prejudicial to the public interest which had cascading impact on various sectors of the economy and the red signals were raised against the IL&FS by the country and even by the department of economic affairs of the country, therefore, before passing a...

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Statutory audit delay is reasonable cause for delayed submission of tax audit Report

M/s. Giral Lignite Power Ltd. Vs ACIT (ITAT Jaipur) - Where there is a delay in completion of statutory audit, there exist a reasonable cause for the delay in completion of tax audit and issuance of tax audit report. ...

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ICAI Disciplinary Committee decision in breach of natural justice is invalid

Partha Ghosh vs. ICAI (Bombay High Court) - In October 2007, Disciplinary proceedings were initiated against two partners of M/s Pricewaterhouse (PWC) for alleged professional and other misconduct in conducting the statutory audit of Global Trust Bank. The proceedings were based on the findings in the Special Audit report and the Annual Finan...

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NFRA imposes Rs 15 lakh fine, 5-year ban on a Deloitte partner in IL&FS Case

NFRA Order No. NF-20012/1/2020 - (28/07/2020) - Order Under Section 132(4) of the Companies Act in respect of the Show Cause Notice issued to CA Shrenik Baid (Membership No 103884) Extract from the order D. PENALTY 199. As discussed in detail in the above paras, the charges framed against CA Shrenik Baid in the SCN have been held to have been pro...

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RBI ban S. R. Batliboi from carrying out statutory audit of Banks for one Year

Press Release: 2018-2019/2848 - (03/06/2019) - On account of the lapses identified in a statutory audit assignment carried out by M/s S.R. Batliboi & Co. LLP, Chartered Accountants , it has been decided that RBI will not approve the said firm for carrying out statutory audit assignments in commercial banks for one year starting from April 1,...

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RBI Enforcement action framework in respect of statutory auditors of banks

Press Release: 2017-2018/3425 - (29/06/2018) - In the interest of improving audit quality and with a view to instituting a transparent mechanism to examine accountability of SAs in a consistent manner, it has been decided to put in place a graded enforcement action framework to enable appropriate action by the RBI in respect of the banks’ SAs ...

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Revision of Remuneration payable to Statutory Auditors of RRBs

F No 7/4/2015-RRB- Vol(11) - (16/10/2017) - I am directed to refer to NABARD's letters NB.HO.IDD/260/RRB-322/2017-18 dated 2nd June 2017 and NB.HO.IDD/468/RRB-322/2017-18 dated 25th July 2017 on the above cited subject and to convey the approval of the Central Government in terms of provisions of section 19(2) of the Regional Rural Bank act, ...

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Govt. constitutes expert Group to look issues related to Audit firms

F. No. 17/112/2016-CL-V - (30/09/2016) - Several audit firms have represented about adverse impacts on Indian audit firms due to the structuring of certain audit firms leading to circumvention of various regulations, manner in which auditor rotation requirements is being implemented by companies, and imposition of restrictive conditions by...

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Recent Posts in "Statutory Audit"

Important Taxation amendments w.r.t. Tax Audit/Company Audit for FY 2019-20

Here’s a list of a few Important Taxation amendments w.r.t. Tax Audit/Company Audit for FY 2019-20: 1. The threshold limit of Rs 1 crore for applicability of Tax audit u/s 44AB(a) is increased to Rs 5 crore if the taxpayer’s cash receipts are limited to 5% of the gross receipts or turnover and the cash […]...

Read More
Posted Under: Company Law |

Role of statutory Auditor in NBFC-ND-NSI- ICC

This article mainly explains statutory auditor role in audit of ‘Investment and Credit Company – (NBFC-ICC)’  (earlier known as Investment/loan company)and having asset size below 500 crore as defined in Non-Systemically Important Non-Deposit taking (Reserve Bank) Directions, 2016 as per Master Direction NBR.PD.007/03.1...

Read More
Posted Under: Company Law |

Statutory Auditors Resignation from Listed Entities & their Material Subsidiaries

In recent times, frequent resignations by the Auditors raised eye brow often due to lack of co-ordination, non-availability of information etc. In view of the same, the SEBI has issued specific norms for procedure of Resignation as well as Appointment of Statutory Auditors for listed entity to hold accountability of outgoing as well as in...

Read More
Posted Under: Company Law |

Appointment of BSR as statutory auditor of IFIN for 2017-18 was illegal: NFRA

The appointment of BSR as the statutory auditor of IL&FS Financial Services Ltd. (IFIN) for the year 2017-18 was illegal, since BSR was not eligible to be appointed as such auditor due to violation of Sec 141(3)(e) (subsisting business relationships on the date of appointment) and Sec 141(3)(i) (provision of non-audit services directly or...

Read More
Posted Under: Company Law |

NFRA imposes Rs 15 lakh fine, 5-year ban on a Deloitte partner in IL&FS Case

NFRA Order No. NF-20012/1/2020 (28/07/2020)

Order Under Section 132(4) of the Companies Act in respect of the Show Cause Notice issued to CA Shrenik Baid (Membership No 103884) Extract from the order D. PENALTY 199. As discussed in detail in the above paras, the charges framed against CA Shrenik Baid in the SCN have been held to have been proved. […]...

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Rotation of Auditors under Companies Act, 2013

Article explains Manner of Rotation of Statutory Auditors under Companies (Audit and Auditors) Rules, 2014 read with Section 139 of Companies Act, 2013. A. Section 139(2) and Rule 5 of the Companies (Audit and Auditors) Rules 2014– Maximum term for appointment of auditors 1. In case of every listed company; 2. All Unlisted companies...

Read More
Posted Under: Company Law |

Impact of Covid Shutdown on ICoFR for Statutory Audit of FY 2019-20

Uncertainty and it’s impact on the control environment Covid-19 brought in uncertainty. Working under the disruptively changed period of Uncertainty should drive you to review your Internal Controls. As we head into the Audit sessions for FY 19-20, Finance teams need to provide their Audit Committees, Boards and the Statutory Auditors c...

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Posted Under: Company Law |

Draft Engagement letter & Management representation on Statutory Audit

Article contains Draft Format of Engagement letter on Statutory Audit and Draft Format of Management Representation letter on Statutory Audit-...

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Posted Under: Company Law |

Expert panel formed to address statutory bank branch audits queries

Auditing and Assurance Standards Board – Online Panel of Experts for Addressing Bank Branch Audit Related Queries for Financial Year 2019-20 – (02-05-2020) AUDITING AND ASSURANCE STANDARDS BOARD CONSTITUTES ONLINE PANEL OF EXPERTS FOR ADDRESSING BANK BRANCH AUDIT RELATED QUERIES FOR THE FINANCIAL YEAR 2019-20 Dear Members, The ban...

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Posted Under: Company Law |

Impact of Coronavirus on Auditing of Financial Statements

The global financial authorities are already shaken by the implications of the spread of COVID-19 on a world scale. It is highly unlikely to state when the current situation will pass and the economy will come right back on the tracks. It seems very justified to state that the pandemic which originated far away from […]...

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Posted Under: Company Law |

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