Page 159 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Description of Gross carrying Held in name Whether Period held – Reason for not
property value of promoter, indicate range, being held in
director or their where name of
relative or Appropriate company*
employee
*also indicate if
- - - - -
in dispute

Revaluation of Assets: The auditor must state whether the company revalued its Property, Plant, and
Equipment (including Right of Use assets) or intangible assets during the year. If so, it should be based on a
valuation by a Registered Valuer. If there is a change of 10% or more in the aggregate net carrying value of each
class of assets, the amount of change should be specified.
Benami Property Proceedings: The auditor should report if there have been any proceedings initiated or
pending against the company under the Benami Transactions (Prohibition) Act, 1988 and the rules made
thereunder for holding any benami property. If such proceedings exist, it should be verified whether the
company has disclosed the details appropriately in its financial statements.

ii) (CNO CARO.060) Inventory
Physical Verification: The auditor must state whether the management has conducted physical verification of
inventory at reasonable intervals. The auditor should also give an opinion on whether the coverage and
procedure of such verification by the management is appropriate. If there are any discrepancies of 10% or more
in the aggregate for each class of inventory, it should be noted whether they have been properly dealt with in
the books of account.
Working Capital Limits and Quarterly Returns: The auditor should report whether, at any point during the
year, the company was sanctioned working capital limits in excess of five crore rupees in aggregate from banks
or financial institutions based on the security of current assets. It should be verified whether the quarterly returns
or statements filed by the company with such banks or financial institutions agree with the company's books of
account, and if not, the details should be provided.

iii) (CNO CARO.080) Loans or advances granted.
1. Financial Engagements: The auditor must state whether the company engaged in making investments,
providing guarantees or securities, or granting loans or advances in the nature of loans, whether secured or
unsecured, to companies, firms, Limited Liability Partnerships, or other parties during the year.
2. Aggregate amounts: If the company has provided loans or advances in the nature of loans, stood as a
guarantor, or provided security to any other entity during the year (excluding companies whose principal
business is to give loans), the auditor should indicate this in the report.
2A. Subsidiaries, Joint Ventures, and Associates: The auditor should report the aggregate amount involved in
transactions such as loans, advances, guarantees, or securities during the year, and the balance outstanding at the
balance sheet date concerning subsidiaries, joint ventures, and associates.
2B. Other Parties: The auditor should state the aggregate amount involved in transactions such as loans,
advances, guarantees, or securities during the year, and the balance outstanding at the balance sheet date
concerning parties other than subsidiaries, joint ventures, and associates.
3. Prejudicial to the company’s interest.: The auditor should confirm whether the investments made,
guarantees provided, security given, and the terms and conditions of all loans and advances in the nature of loans
and guarantees provided are not prejudicial to the company’s interest.
4. Repayment Schedule & Repayment Regularity:

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