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· No evidences were taken by the firm to verify the ageing of the leased assets.

· There was no evidence of any work being reviewed by any partner.

· There was no evidence of having verified the reasonableness of actuarial assumptions for estimating the liability for employees benefit.

· There were no documents in the audit files to justify/ evidencing the classification of security deposits taken by the company from dealers, expected to remain with the company till the dealership was terminated.

· Some of the key audit evidence such as orders from sales tax /Income tax/Excise and other authorities resulting in material transaction were not held on record.

· The firm had no formal means for assessment of audit risks, and no further evidences were obtained to reduce the audit risk to an acceptable level.

· The firm had represented that it had performed audit procedures to test the provisioning made for doubtful debts for each of sales regions based on the budgets provided by each region; however, no evidence of the budget data was available on record.

· There was no evidence of evaluating the reasonableness both of accounting estimates and management representations, and to make judgement regarding the appropriateness of accounting policies and disclosures of the relevant industry and the concerned guidance notes, if any.

· In certain accounts, the persistent irregularities in the accounts of substantial amounts were adjusted at the year-end. However, evidence of source of such credits to ascertain genuineness was not available on record. Further, recovery through RTGS did not evidence the source of remittance of funds.

· There was lack of sufficient appropriate audit evidence for reversal of amount payable to a group company.

· The Company sold plots of land during the year, however, it was informed that cost of these lands had been already written off in the earlier financial years. On verification of movement of stock of development rights and the cost of development rights debited to profit & loss account, a difference was noticed for which no evidence was produced.

Quality Review Board Report on Quality Review Findings (2012-15) Click Here >>

Quality Review Board (QRB) Report 2012-15- Obtaining Audit Evidence in Accordance with Standard on Auditing SA 500 |18-08-2015|