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Jay buchjay buch asked 1 year ago

What should be the correct ans ?should auditor allow the mgmt to make changes or no?

5 Answers
RaviRavi Staff answered 1 year ago

please elaborate question here, so that i can answer and we all know what was exact question thanks

RaviRavi Staff answered 1 year ago

Answer no individual transactions wise disclosure need to be given, only gross turnover disclosure will be required. Please see text below and ask if there is further any query in comment section.
Definition of Government Related Entity 
A government-related entity is an entity that is controlled, jointly controlled or significantly influenced by a government.
Para 25 of Ind AS 24
Government-related entities is exempt from the disclosure requirements of related parties in relation to related party transactions and outstanding balances, including commitments, with:
(a) a government that has control or joint control of, or significant influence over, the reporting entity; and (Power Supply Corporation Limited)
(b) another entity that is a related party because the same government has control or joint control of, or significant influence over, both the reporting entity and the other entity. (Procurement Supply Corporation Limited)
Para 26 of Ind AS 24
If a reporting entity applies the exemption in paragraph 25, it shall disclose the following about the transactions and related outstanding balances referred to in paragraph 25:
(a) the name of the government and the nature of its relationship with the reporting entity (ie control, joint control or significant influence);
(b) the following information in sufficient detail to enable users of the entity’s financial statements to understand the effect of related party transactions on its financial statements:
(i) the nature and amount of each individually significant transaction; and
(ii) for other transactions that are collectively, but not individually, significant, a qualitative or quantitative indication of their extent. Types of transactions include those listed in paragraph 21 (regular transactions which are disclosed)

Jay buchjay buch answered 1 year ago

Dear sir, i m asking abt ques 1(b) …
The ques where it is asked whether the audit reprt should be revised or not…

(The ans given in reply is of q 1 a.)

RaviRavi Staff answered 1 year ago

its a new case study by ICAI, so i will give my opinion.
From Co Act Sec 131 point of view, company is free to revise its financial statement as they want as per AS / IndAS before AGM.
From SA 560 point of view if company revises its financial statements, auditor will give revised audit report on such matter.

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