https://www.taxtmi.com/caselaws?id=762587 Auditors of a holding company must maintain professional skepticism, verify fraud indicators, and report diversion of funds, evergreening, and related-party transactions; the disclaimer of opinion did not excuse failures to detect or report known fraud risk. They must also verify statutory conditions for section 185 compliance, including the special resolution and end use of loans and guarantees, and their unsupported compliance assertion was improper. Commencing audit work before completing predecessor-auditor communication and acceptance procedures, issuing reports inconsistent with disclaimer, key audit matter, and emphasis of matter requirements, and failing to complete engagement quality review before report issue each constituted professional misconduct. en-us Thu, 10 Oct 2024 00:00:00 +0530 Tue, 03 Dec 2024 18:17:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762587 Auditors of a holding company must maintain professional skepticism, verify fraud indicators, and report diversion of funds, evergreening, and related-party transactions; the disclaimer of opinion did not excuse failures to detect or report known fraud risk. They must also verify statutory conditions for section 185 compliance, including the special resolution and end use of loans and guarantees, and their unsupported compliance assertion was improper. Commencing audit work before completing predecessor-auditor communication and acceptance procedures, issuing reports inconsistent with disclaimer, key audit matter, and emphasis of matter requirements, and failing to complete engagement quality review before report issue each constituted professional misconduct. Case-Laws Companies Law Thu, 10 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762587