https://www.taxtmi.com/caselaws?id=313635 NFRA found that the auditors and audit firm failed to maintain independence, with fee dependence and overlapping relationships creating self-interest and familiarity threats without effective safeguards. It also found inadequate entity understanding, risk assessment and fraud response, including failure to detect circular fund movements, related-party misstatements and evergreening of loans, and failure to report fraud. The authority further held that going concern assessment and cash flow classification were not properly evaluated, and that audit documentation, communication, planning, reporting and board-approval requirements were breached, except on materiality. Professional misconduct was proved, and penalties with debarment were imposed on the firm and the concerned partners. en-us Tue, 30 May 2023 00:00:00 +0530 Fri, 26 Apr 2024 20:51:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=313635 NFRA found that the auditors and audit firm failed to maintain independence, with fee dependence and overlapping relationships creating self-interest and familiarity threats without effective safeguards. It also found inadequate entity understanding, risk assessment and fraud response, including failure to detect circular fund movements, related-party misstatements and evergreening of loans, and failure to report fraud. The authority further held that going concern assessment and cash flow classification were not properly evaluated, and that audit documentation, communication, planning, reporting and board-approval requirements were breached, except on materiality. Professional misconduct was proved, and penalties with debarment were imposed on the firm and the concerned partners. Case-Laws Companies Law Tue, 30 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=313635