bharat gahlot asked 7 years ago
Sir is it mandatory for every co. to present actuarial valuation report to auditor if such co. is covered under AS-15?And as a Statutory auditor should we give EMP paragraph in Audit report if client doesn\’t done Actuarial valuation in any of the previous and current year or should Qualify the report?
Ravi Staff answered 7 years ago
Hello Bharat
If company is covered under AS 15, that have to get actuarial validation done once in 3 years, so that is requirement of AS / FRF.
So it’s not required every year but once in 3 years, if they do it well and good.
If they don’t do it once in 3 years then it will be non compliance of FRF , we should try to get evidence reliability of accounting treatment through alternative means if we get appropriate data then it’s absolutely fine again give clean report.
If we are not getting proper evidence then qualify or disclaimer.
So key is are we having evidence from one means or other. We may not have acturial report but if we are having our own actuary report or other means it’s fine, then such non compliance will not be material.l and no need to qualify.