Indore: Responsibilities Of Company Auditors Increasing Day-By-Day

Indore (Madhya Pradesh): Senior CA Prakash Vohra has said that along with collecting technical information through audited balance sheets and reports, the responsibilities of the company auditor are also increasing day by day. He said that book keeping is a continuous task and in this regard it is necessary to have strong internal control in the company so that there is no possibility of mistakes while preparing balance sheet etc. and auditors can issue quality reports.

CA Vohra was addressing the seminar here organised by Tax Practitioners Association and Indore CA Branch. The subject of the seminar was Companies Audit, Books of Accounts and Audit Trail. Another speaker of the seminar was CA Aseem Trivedi.

CA Vohra said that this year a new audit trail has been started, adding a new chapter in company audit. Through which, once the entries made in accounting books are changed, the information about the same is obtained through the software. If irregularities are detected in the audit trail, the auditor must necessarily reflect the same in his report. He said that on the lines of the Income Tax Department, the Ministry of Corporate Affairs (MCA) has created a system for processing company accounts, returns and audit reports. Separate CPC (Centralised Processing Centre) has been established. Now the financial records of the company will be processed by the CPC in place of the Registrar of Companies, which will work on a completely faceless and online platform.

CA Aseem Trivedi, said that before signing the balance sheet, 50 key points were discussed which may generally come up in a company audit, like forgetting to apply accounting standards, make a wrong disclosure, Unique Document Identification Number (UDIN) gone wrong, notes to the Accounts gone wrong, to avoid such casual and technical mistakes, it is necessary to take full care during company audit.

He said that many disclosures regarding MSMEs are required to be given in the balance sheet such as bifurcation of creditors into MSMEs and non-MSMEs, how old the creditors are, disclosure of provision of interest under Section 16 regarding late payment of MSMEs.