https://www.taxtmi.com/caselaws?id=751547 NFRA found that the audit team failed to discharge joint auditor responsibilities by not independently examining serious concerns raised by the resigned joint auditor before concluding that section 143(12) reporting was unnecessary. It also held that carrying the auditors' own conclusion into the financial statements and then relying on it in the audit report created self-review, and that the Emphasis of Matter paragraph was misleading and inconsistent with auditing standards. The authority further found inadequate audit evidence on loan recoverability, lending policy compliance, contradictory confirmations, fraud indicators, and expected credit loss, and held the engagement quality control reviewer and firm responsible for deficient supervision and quality control. Professional misconduct findings resulted in penalties and debarment for the individual auditors. en-us Fri, 12 Apr 2024 00:00:00 +0530 Thu, 18 Apr 2024 12:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751547 NFRA found that the audit team failed to discharge joint auditor responsibilities by not independently examining serious concerns raised by the resigned joint auditor before concluding that section 143(12) reporting was unnecessary. It also held that carrying the auditors' own conclusion into the financial statements and then relying on it in the audit report created self-review, and that the Emphasis of Matter paragraph was misleading and inconsistent with auditing standards. The authority further found inadequate audit evidence on loan recoverability, lending policy compliance, contradictory confirmations, fraud indicators, and expected credit loss, and held the engagement quality control reviewer and firm responsible for deficient supervision and quality control. Professional misconduct findings resulted in penalties and debarment for the individual auditors. Case-Laws Companies Law Fri, 12 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751547