Abhishek Panegal asked 4 years ago
Dear Sir,
In this question wouldn’t the reference of CARO cl (i) be required ? It says that evidence regarding existence of value of machinery is needed. Cl (i) specifically is about FA verification, management appropriately conduct physical verification, adequate disclosure in books if any discrepancies observed in physical verification.
Kindly revert at earliest. Thank you.
Ravi Staff answered 4 years ago
Questions says auditor was not able to able to get evidence about existence and value of fixed assets.
It is silent about whether management did physical verification of fixed assets. and in caro we have to comment about management, whether they did physical verification. As question is not talking about management actions, we should not bring CARO here, its not required.