Srilekha SruthaSrilekha Srutha asked 1 year ago

Special Audit Assignments-Chapter 14, Unit 3 Audit of Non Corporate Entity.

1 Answers
RaviRavi Staff answered 1 year ago

When it comes to company audit and professional ethics icai keeps updating chapters regularly and they expect updated content.
Unfortunately our module has old and outdated content when it comes to some other chapters and i as a professor has to follow the same as given in these kind of chapters. 
As per module RBI (Recommended) for audit if working capital exceeds 10 lakhs from FY 1984-1985. When this recommendation were made there was no requirement of TAX Audit or it was in intial stages. Tax Audit was made mandatory from 1985-1986. As tax audit was mandatory and became very popular with large number of people getting covered in it, RBI recommendation took back seat, Banks accepts same audit report and data which is generally given to income tax department. Today bank asks for same financial statements and report which borrower has given to income tax department.
Of  course knowledge of how to conduct these audits is useful while doing tax audit of these non corporate entities.
so today non corporate entities are required to fo audit as per Sec 44AB only, RBI recommendations of 84-85 are not relevant, from exam point of view we should know such recommendations were made.

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