ICAI has released an ‘Implementation Guide on Rule 11(e) & 11(f) of the Companies (Audit and Auditors) Amendment Rules, 2021’, which has been notified by MCA vide Notification dt. 24/03/2021 applicable from 01/04/2021.
The scope of reporting requirements set forth in the amended Companies (Audit and Auditors) Amendment Rules, 2021 is very wide and is applicable for audits of companies for the financial year 2021-22 and onwards.
The Implementation Guide of ICAI contains detailed guidance on various aspects of reporting under Rule 11(e) like analysis of Rules, management’s responsibilities in respect of disclosures in financial statements under Schedule III to the Companies Act, 2013, various audit procedures to be performed, reporting considerations, illustrative formats of confirmation letters, illustrative formats of management representations. The Implementation Guide also contains detailed guidance on various aspects of reporting under Rule 11(f) like relevant requirements under the Companies Act, 2013 and Rules thereunder, audit considerations, reporting requirements, audit procedures and illustrative reporting. The Implementation Guide will enable auditors of companies to comply with the reporting requirements under these Rules effectively.
The purpose of this Implementation Guide is to enable the auditors to comply with the reporting requirements of Rule 11(e) and Rule 11(f). It should be noted that whilst the guidance given in this Implementation Guide provides the principles for reporting under the aforesaid Rules, the auditors should also exercise their professional judgement and experience on the matters on which they are required to report.
ICAI’s Implementation Guide (2022 Edition) on Rule 11(e) & 11(f) of the Companies (Audit and Auditors) Amendment Rules, 2021
MCA Notification dt. 24/03/2021: Companies (Audit and Auditors) Amendment Rules, 2021, applicable w.e.f. 01/04/2021, notified to insert new Rules 11(e), 11(f) & 11(g)
The Audit Report in current form is too voluminous. What’s the point of specifying Management’s responsibilities. It’s basically to submit the Financial statements following all Accounting norms. Auditors should certify whether the Financial statements are prepared following prescribed norms and whether it gives true and fair view. Otherwise qualify. Why take cover by passing responsibility to Management.