Interesting Audit Updates

Audit reports of FY 15-16, will have a New Annexure to Independent Auditor Report for all companies.

Infact it is not just such annexure it is full fledged separate report in itself.

“Report on the Internal Financial Controls(IFC)”

Following will be the key components of this report as per Guidance Note on IFC

2.Management Responsibility for IFC
3.Auditor Responsibility
4.Meaning of IFC over Financial Reporting
5.Inherent Limitations of IFC over FR

Happy Additional Responsibilities !!!

If report is in appropriate happy exorbitant fines and damages!!!

I hope client pays additional fees!!!


It’s regarding audit of Insurance companies.

Earlier government was very cautious with share capital of Insurance company hence, Insurance companies could have only “Equity Shares”

But not after amendment of 2015 which is applicable in Nov 15 exams.

Government has given power to IRDA to prescribe other types of shares also.(No announcement from IRDA yet)

Further limit of 49% (26% automatic without approval and above 26% with CG approval) is applicable only to Equity shares.

So plan is clear in some time IRDA will allow preference shares and foreign companies will be able to buy even 100% of preference shares.

Loads of money will flow to Insurance sectors.


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