Announcement*
Applicability
of Section 143(12) to Financial Years beginning on or after 1st April 2014
The
Council of the Institute of Chartered Accountants of India, at its adjourned
333rd meeting held on 18th June 2014, considered the issue of applicability of
the provisions of section 143(12) of the Companies Act 2013 to the financial
periods beginning on or after 1st April 2014. In other words, whether the
statutory auditor would be required to report pursuant to section 143(12) while
carrying out audits of financial statements for the interim periods, such as
quarterly or half yearly audits.
The
Council of the view that such quarterly/ half yearly audits are not carried out
pursuant to the requirements of the Companies Act 2013 (rather to meet the
specific requirements of the auditee company, for example, to comply with the
listing agreement requirements) as the latter only envisages audit of the
annual financial statements.
The
Council, accordingly, felt that prima facie, as a corollary, section
143(12) would become applicable only for financial year (and not for a period)
2014-2015 and onwards. The Council is, however, in the process of communicating
with the Ministry of Corporate Affairs in this regard.
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*
This Announcement has been issued by the President ICAI under the authority of
the Council of ICAI.
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