DevyaniDevyani asked 1 year ago
5 Answers
Best Answer
RaviRavi Staff answered 1 year ago

Financial Statements are prepared by Management  — Auditor reports whether they give true & fair view.
Form 3CD is prepared by Management — Auditor reports whether it is true & correct.
If we only prepare then how we will only report on it, there wont be maker checker concept, no will given adverse comment on himself.
Financial Statements are signed by auditor because external users like bank etc demand it, they dont accept it unless signed by auditor. It it proof that financial statements are audited.
Form 3CD / 3CA / 3CB is uploaded by Auditor’s ID, that simply means he has checked them, It doesn’t mean 3CD is auditor’s responsibility, ultimately client accepts it from his Id.
Now in practical life scenario,  when we deal with mid size clients, staff of ca firm only prepares financial statements  and form 3 cd , so it gives impression its our responsibility.
See page number 56 of guidance note or page 73 of pdf file  for more clarity and send it to others for better understanding. 
https://resource.cdn.icai.org/34728gn-taxaudit-dtcicai.pdf

DevyaniDevyani answered 1 year ago

And whose responsibility it is to prepare 3CD? Assessee or Auditor?

DevyaniDevyani answered 1 year ago

And whose responsibility it is to prepare 3CD? Assessee or Auditor?

DevyaniDevyani answered 1 year ago

I request Ravi Taori Sir to answer my question.
Sir few of my friends denied that form 3CD & FST alongwith are prepared by auditor and not assessee. also there is signature of CA at the end of form 3cd and financial statements. so CA only prepares all along with 3CA / 3CB… and CA himself uploads them. are my collegues correct?

And whose responsibility it is to prepare 3CD? Assessee or Auditor?

 

DevyaniDevyani answered 1 year ago

Thank you so very much sir 🙂

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