Section 143(3)(i) of the Companies Act 2013 requires the auditor’s report shall also state whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.

ICAI had advised to its members that   the provisions of section 143(3)(i) of the Companies Act 2013 would apply to the audits of the financial year beginning on or after 1st April 2014

Subsequently on 14-10-2014, MCA had come up with new rule 10A specifying that  the said clause shall apply to financial years commencing on or after 1st April, 2015.

Now, the Auditing and Assurance Standards Board (AASB) of the Institute of Chartered Accountants of India (ICAI) has issued two illustrative formats for engagement letter for audit of Financial Statements under the Companies Act, 2013 and the Rules there under:

As per ICAI, above illustrative formats have been approved by the Council of the Institute of Chartered Accountants of India (ICAI) at its Meeting held in November 2014. These illustrative formats would be added to the Appendix 1 of Standard on Auditing (SA) 210, ‘Agreeing the Terms of Audit Engagements’, issued by ICAI.

Similar/Related Updates:

ICAI Clarification on applicability of section 143(3)(i) of Companies Act, 2013   Click Here >>

MCA-Notification of Rule 10A   Click Here >>