Auditguru Auditguru Frequently Asked Questions(FAQ) Auditguru Auditguru
 Meet Us Here
Sandeep AhujaSandeep Ahuja asked 12 months ago

Sales income included lottery income. If FS of PY have already been issued, how will the management rectify it. Revise FS as per Companies act OR adjustment in Corresponding figures/Comparative FS (depending on approach). Unlike provision for doubtful debt the rectification cannot be made in sale of CY, so what constitutes rectification in this scenario for auditor to issue clean report this year ?

1 Answers
RaviRavi Staff answered 12 months ago

while preparing current year financial statement, lottery income in included in previous year sales will be regrouped as extra ordinary item, this change of line item will be considered as rectification, with no accounting entry in current year required as it is not having any impact on current year

Call Back Request