NFRA Debars Auditor for Not Issuing “Adverse Opinion” on CFS for Non-consolidation of Material Subsidiary
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 27 November, 2023
Latest from Taxmann
On receipt of information from the Securities and Exchange Board of India (SEBI) regarding financial irregularities committed by a company, NFRA initiated an investigation against the auditor of a Mumbai-based company in pursuance of section 132(4) of the Act. NFRA instructed the statutory auditor to submit the Audit File and other relevant information related to the audit of the company for investigation into professional or other misconduct of the statutory auditor.
The authority after analysing the various audit documents and contentions made by the auditor passed the order on 23.11.2023. The Engagement partner has Qualified’ his opinion on Consolidated Financial Statements (CFS) stating that the Financial Statements reflected ‘true and fair view’ except for the effect of non-consolidation of a wholly-owned subsidiary which constituted about 19.20% and 28.96 % respectively of the assets and liabilities of the Parent Company. NFRA holds the view that this being a material subsidiary, the auditor should have issued a material subsidiary. To know the intentions of the Engagement Partner behind issuing a Qualified Opinion on such an important matter and more observations from the order.
Click Here To Read The Full Story
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
