ICAI’s Guidelines for Members relating to adequate disclosures/ reporting on dealings/ holding of Specified Bank Notes during Demonetization; Implementation Guide on Auditor’s Report under Rule 11(d) of Companies Audit Rules and Amended Schedule III to Companies Act, 2013
The AASB of ICAI has come out with an “Implementation Guide on Auditor‘s Report under Rule 11(d) of Companies (Audit and Auditors) Amendment Rules, 2017 and Amendment to Schedule III to Companies Act, 2013”.
The guidelines of ICAI on transactions of scrapped currency during demonetization period will ensure:
i) adequate disclosures in the financial statements of companies, as per MCA requirements relating to transactions involving cancelled specified bank notes of Rs. 500 and Rs. 1000 during 8 Nov. to 30 Dec. 2017 (demonetization); and
ii) appropriate guidance to Members on the new reporting obligation cast on statutory auditors of companies.
This Implementation Guide of ICAI has been written in an easy to understand language and contains detailed guidance on various issues, so that members can discharge their reporting obligation in an effective manner.
It may be noted that MCA has made certain amendments in Company Law, as under:
i) Companies (Audit and Auditors) Amendment Rules, 2017 notified on 30 Mar. 2017 to insert a new Rule 11(d) requiring auditors to report on whether the company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 Nov. 2016 to 30 Dec. 2016 and if so, whether these are in accordance with the books of accounts maintained by the company.
ii) Amendment to Schedule III to the Companies Act, 2013 on 30 Mar. 2017 to require that every company shall disclose the details, in the prescribed/ specified format, of Specified Bank Notes held and transacted during the said period.