Revenue-neutral domestic transfer pricing and mirror transactions justified deletion of related-party adjustments for operation, maintenance and port ...
This document discusses the responsibilities and obligations of auditors, particularly principal auditors, in conducting audits of group financial statements under the Companies Act, 2013 and relevant auditing standards. Key points: 1. Auditors must determine necessary audit procedures to fulfill requirements of auditing standards and achieve audit objectives, even if additional procedures beyond standards are required. 2. Principal auditors remain responsible for forming and expressing opinion on group financial statements, requiring them to obtain sufficient appropriate audit evidence, including evaluating work of component auditors. 3. Use of "should" in auditing standards does not make provisions discretionary but implies presumptively mandatory responsibilities that auditors must comply with or document alternative procedures meeting objectives. 4. Principal auditors may need to review component auditors' work papers to evaluate if work is adequate, as permitted under law for discharging duties. Merely confirming component auditor's qualification is insufficient for assessing professional competence. 5. Responsibility for consolidated financial statements lies with management and board of holding company, and principal auditors must comply with relevant provisions. 6. Auditors must understand responsibilities under the Act, auditing standards, and carry out procedures accordingly in the public interest, as mandated for NFRA's oversight role.
This document discusses the responsibilities and obligations of auditors, particularly principal auditors, in conducting audits of group financial statements under the Companies Act, 2013 and relevant auditing standards. Key points: 1. Auditors must determine necessary audit procedures to fulfill requirements of auditing standards and achieve audit objectives, even if additional procedures beyond standards are required. 2. Principal auditors remain responsible for forming and expressing opinion on group financial statements, requiring them to obtain sufficient appropriate audit evidence, including evaluating work of component auditors. 3. Use of "should" in auditing standards does not make provisions discretionary but implies presumptively mandatory responsibilities that auditors must comply with or document alternative procedures meeting objectives. 4. Principal auditors may need to review component auditors' work papers to evaluate if work is adequate, as permitted under law for discharging duties. Merely confirming component auditor's qualification is insufficient for assessing professional competence. 5. Responsibility for consolidated financial statements lies with management and board of holding company, and principal auditors must comply with relevant provisions. 6. Auditors must understand responsibilities under the Act, auditing standards, and carry out procedures accordingly in the public interest, as mandated for NFRA's oversight role.
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