The NFRA publishes the Audit Quality Review (AQR) Report of ITNL’s Statutory Audit for Fiscal Year 20217-18
- Blog|News|Account & Audit|
- < 1 minute
- By Taxmann
- |
- Last Updated on 27 September, 2021
Latest from Taxmann
The National Financial Reporting Authority (NFRA) has raised doubts over the ability of statutory auditor for undertaking engagement of IL&FS Transportation Network Limited (ITNL) for F.Y. 2017-18.
In AQR Report, the NFRA has not only questioned on the initial appointment of SRBC & Co LLP (concerned statutory auditor) but also its failure to monitor and enforce the compliance with Accounting Standards, Auditing Standards relevant to the performance of engagement. Though the NFRA has raised many concerns about the conduct of the engagement, the observations made in the AQR are limited to a few significant deficiencies and do not address all of the deficiencies that may have happened throughout the combat.
Some of the concerns raised by the authority are:-
1. The initial appointment as well as continuation of SRBC &Co LLP, as statutory auditor of ITNL, was prime facia illegal and void.
2. Because the audit firm has failed to obtain the sufficient and appropriate evidence to justify the valuation of ITNL’s investment and loans to its group entities, the ITNL’s financial exposure to its subsidiaries, associates, and joint ventures amounting to Rs. 3,346 crore was not properly valued as per the applicable Accounting Standards.
The Detailed Document Can Be Accessed Here
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
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
