Audit Amendments Nov 2017 (CA IPCC CA Final Auditing)

CA Final Audit Amendments Nov 2017 and CA IPCC Auditing Amendments for Nov 2017 exam have been provided below. In the previous post, we have listed out all the amendments applicable in Tax and Company Law Topics. These Audit Amendments for Nov 2017 were prepared by CA Sanjay Rathod. These Amendments in Audit are provided in simple and easy language. Students need to keep more stress on Amendments because, at least 20% marks from Nov 2017 Auditing Paper will come from these Amendments only. Also, Study CA IPCC Syllabus and Amendments for Nov 2017 All Subjects.

IPCC Auditing Amendments Nov 2018:

There are three Amendments in Audit Syllabus applicable for November 2018 exams and these are summarised below by finapp editorial board. These changes are based on the Companies Amendment Act. These Audit amendments are applicable for both Old and New Syllabus students.

1. Amendment in Section 140:

When an Auditor Resigns from the company, he has to intimate the same to ROC within 30 days of resignation. Failure of this will attract penalty. Earlier, the penalty is Minimum of Rs.50,000 and Maximum of Rs.5 Lakh.

Now, After Amendment, the penalty is, Fifty Thousand or the Remuneration of the Auditor, whichever is less.

2. Amendment in Section 143 : Powers of Auditors

Earlier, Auditor of a Holding Company has power to access the books of Subsidiary Company.

Now, after the amendment, Auditor has power to access books of both Subsidiary and also Associate Companies.

3. Amendment in Section 148 – Cost Audit:

Earlier, this provision was applicable to Cost Accountant in Practice. Now, after amendment, it is applicable to all Cost Accountants.

CARO 2016 replaces CARO 2015

In the early months of 2016, the government has notified the CARO 2016. As this notification has come before April, CARO 2016 will be applicable for the upcoming Nov 2016 and Nov 2017 CA IPCC Exams.

Trick to Remember Section 80 Deductions

CA Final Auditing and Professional Ethics Amendments:

There has been few changes in the Guidance Note on Reporting under section 143(3)(f) and section 143(3)(h). These sections deals with the duties and powers of company auditors.

It requires the auditors to give his report to the members on the financial statement accounts examined by him. He shall also give his opinion on the financial statements which will be submitted to the shareholders in the Annual General Meting of the company.

CARO 2016 Vs CARO 2015 Comparision

CARO 2016 applicable for CA Final Nov 2017

In the beginning months of 2016, the government has notified the CARO 2016. As this notification has come before April, CARO 2016 will be applicable for the upcoming Nov 2016 and Nov 2017 CA IPCC Exams.

Amendment in Inventories part: Auditor need to collect necessary evidences to ensure that physical verification of inventory has been conducted at reasonable intervals by the management and discrepancies were noticed has been dealt with in the books of account.

Amendment in Deposit under CARO: Definition of the deposit as per companies act is so wider like advance received from customers and not adjusted up to or more than 365 days become included under the definition of deposit. Various other transactions are fall under that category.

“Strictly speaking, there are no new amendments in the Nov 2016 Syllabus apart from the applicability of CARO 2016.”