suppose your firm has assigned a task to conduct audit of m/s z and co a company limited company for the year 2018 2019 draft a qualified report based on assumption answer
Answers
Answer:
A qualified opinion means that there was either a scope limitation, a non-pervasive issue found during the financial audit, or insufficient footnote disclosure.
Explanation:
To the Members of M/S Z and Co.
Report on the Standalone
Financial Statements
We have reviewed M/S Z and Co.'s accompanying standalone financial statements, which include a balance sheet as of March 31, 2019, a statement of profit and loss, a cash flow statement, a summary of key accounting policies, and other explanatory data.
Management’s Responsibility for the Standalone Financial Statements
The Company's Board of Directors is in charge of carrying out the duties outlined in Section 134(5) of the Companies Act 2013 (the "Act") with regard to the creation of these standalone financial statements that provide a true and fair view of the Company's financial position, financial performance, and cash flows in accordance with Indian accounting standards, including those referred to in Section 133 of the Act.
Auditor’s Responsibility
It is our duty to provide an assessment of these financial accounts based on our audit.
We feel that the audit evidence we have gathered is adequate and sufficient to serve as the foundation for our qualified audit opinion..
Basis for Qualified Opinion
• A sum of Rs. owed from the defunct business XXX Private Limited is included among the balance sheet's debtors. For this loan, the Company has no security. According to our judgement, the company should make a full provision for impairment of Rs. XXX, decreasing the profit before taxes for the year and net assets at March 31, 20XX by that amount. This is because no security has been obtained and no cash has been received throughout the financial year.
• Because we were hired to be the company's auditors on December 31, 20XX, we were unable to watch the physical inventory being counted at the start of the financial year. By using different methods, we were unable to satisfy ourselves with the inventory numbers held on March 31, 20XX.
Report on Other Legal and Regulatory
Requirements As required by section 143 (3) of the Act, we report that:
a) To the best of our knowledge and belief, we have sought out and secured all the information and explanations that were required for the purpose of our audit, with the exception of the topics stated in the Basis for Qualified Opinion paragraph;
b) With regard to the additional items required to be included in the auditor's report pursuant to Rule 11 of the Companies (Audit and Auditors) Rules, 2014, we believe the following to be true, to the best of our knowledge, and in line with the justifications provided to us:
1. The Company has made the statutory transfers of funds to the Investor Education and Protection Fund without delay
Place:
Date:
Chartered Accountancy Firm:
Signature:
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