https://www.taxtmi.com/caselaws?id=766956 An NFRA order on audit failures states that where regulatory red flags, prior qualifications and suspected fraud indicators exist, an auditor must exercise heightened professional skepticism, promptly report suspected fraud, perform a realistic fraud risk assessment, obtain sufficient appropriate audit evidence and maintain contemporaneous documentation. The order also stresses that misstatements in the loan book, deferred tax assets, investments and consolidation workings can make a modified audit opinion inadequate if they are material and pervasive. The proved lapses were treated as breaches of statutory and professional duties and were held to constitute professional misconduct attracting penalty and debarment. en-us Thu, 30 Jan 2025 00:00:00 +0530 Thu, 06 Mar 2025 17:04:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766956 An NFRA order on audit failures states that where regulatory red flags, prior qualifications and suspected fraud indicators exist, an auditor must exercise heightened professional skepticism, promptly report suspected fraud, perform a realistic fraud risk assessment, obtain sufficient appropriate audit evidence and maintain contemporaneous documentation. The order also stresses that misstatements in the loan book, deferred tax assets, investments and consolidation workings can make a modified audit opinion inadequate if they are material and pervasive. The proved lapses were treated as breaches of statutory and professional duties and were held to constitute professional misconduct attracting penalty and debarment. Case-Laws Companies Law Thu, 30 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766956