Page 406 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

3. Source: Directions for audit procedures can be found in various pronouncements of the Institute, including
Engagement and Quality Control Standards, Statements, General Clarifications, Guidance Notes, Technical
Guides, Practice Manuals, Studies, and Other Papers.
Audit of Listed Companies:
Eligibility: Only auditors who have undergone the Peer Review process of the Institute are eligible to conduct
the statutory audit of listed companies. This requirement is in accordance with the SEBI Notification and the
Companies Act, 2013.
Certification: These auditors must hold a valid certificate issued by the Peer Review Board of the ICAI.
FRN and Membership No.:
FRN & MRN: Members must include their Membership number in all reports. The Firm Registration Number
(FRN) must also be mentioned in these reports.
All Attestation Engagements: This requirement applies to all attestation engagements, including certificates,
issued by members as proprietors or partners in the firm.
Unique Document Identification Number (UDIN):
Mandatory: From 1st July, 2019, the Unique Document Identification Number (UDIN) is mandatory for all
Corporate/Non-Corporate Audit, Attest, and Assurance Functions. Members of the Institute in practice must
generate UDIN for all types of certification, GST and Tax Audit Reports, and other Audit, Assurance, and
Attestation functions they undertake or sign.
Reporting Should Not Be an Excuse.
Reporting Should Not Be Excuse: An auditor, appointed by the shareholders, is expected to perform certain
statutory functions and duties. Failure to perform a statutory duty as required cannot be excused by merely giving
a qualification or reservation in the auditor’s report.
Example: For instance, if an auditor fails to verify the cash balance where such verification was necessary, feasible,
and material, it is not sufficient for him to merely state in his report that he did not verify the cash balance. When
giving any reservations or qualifications in the auditor’s report as required under this clause, a member should
clearly indicate the reason why he was unable to perform the audit in accordance with generally accepted
procedures and standards.
Special Procedure: Certifying figures of circulation of Newspapers etc.
Circulation: Members are frequently asked to certify the circulation figures of newspapers and magazines for
their clients on behalf of the Audit Bureau of Circulations Ltd.
Rules: The Audit Bureau of Circulations Ltd provides members with the rules and regulations for the
certification process.
Compliance: Members must give written acceptance that they will adhere to these rules and report any
deviations, even minor ones.
Special Procedure: Verification on behalf of Banks:
Audits For Banks (Stock Audit): Verification procedures for audits conducted on behalf of banks are different
from those under the Companies Act. Members must be well-versed with the specific procedures required for
these audits.
Compliance: Members are expected to act in accordance with these special procedures.

(CNO-PE.1640) CLAUSE 10
A Chartered Accountant in practice shall be deemed to be guilty of professional misconduct if he.
Clause (10) fails to keep moneys of his client other than fees or remuneration or money meant to be expended
in a separate banking account or to use such moneys for purposes for which they are intended within a reasonable
time.
Analysis

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