News Details- (Get Professional Updates on Whatsapp, Msg on
8285393786) More
News
NFRA Slaps Rs 5 lakh Penalty on Audit Firm for lapses in Vikas WSP Audit Case
PrintThe National Financial Reporting Authority (NFRA) has slapped a penalty of Rs 5 lakh on an audit firm for professional misconduct and other lapses in the audit of Vikas WSP Ltd for FY20. Vikas WSP Ltd is a BSE- and NSE-listed company.
The order came after NFRA received information from the Securities Exchange Board of India (Sebi), that Vikas WSP Ltd did not recognise in its FY20 financial statements the interest expense on its borrowings from banks, which resulted in overstatement of profits by the company.
Thereafter, NFRA initiated action against the audit firm, for professional or other misconduct in the statutory audit of Vikas WSP Ltd (VWL) for FY20.
The regulator noted that the financial statements of VWL were materially misstated due to partial recognition of interest cost on borrowings classified as Non-Performing Assets (NPAs) by banks in FY20, resulting in overstatement of profits.
"The audit firm that was primarily responsible for establishing and maintaining a system of quality control that the firm and its personnel comply with professional standards and regulatory and legal requirements.
"Further, the reports issued by the firm or engagement partners are appropriate in the circumstances, failed to properly implement its quality control policies and procedures," NFRA said in the order on Tuesday. Accordingly, the regulator penalised the audit firm for the audit lapses.
"The audit firm failed to meet relevant requirements of the Companies Act, Standards on Quality Control (SQC 12), standards on auditing in several significant respects, and was grossly negligent and failed to apply professional ske.
The order came after NFRA received information from the Securities Exchange Board of India (Sebi), that Vikas WSP Ltd did not recognise in its FY20 financial statements the interest expense on its borrowings from banks, which resulted in overstatement of profits by the company.
Thereafter, NFRA initiated action against the audit firm, for professional or other misconduct in the statutory audit of Vikas WSP Ltd (VWL) for FY20.
The regulator noted that the financial statements of VWL were materially misstated due to partial recognition of interest cost on borrowings classified as Non-Performing Assets (NPAs) by banks in FY20, resulting in overstatement of profits.
"The audit firm that was primarily responsible for establishing and maintaining a system of quality control that the firm and its personnel comply with professional standards and regulatory and legal requirements.
"Further, the reports issued by the firm or engagement partners are appropriate in the circumstances, failed to properly implement its quality control policies and procedures," NFRA said in the order on Tuesday. Accordingly, the regulator penalised the audit firm for the audit lapses.
"The audit firm failed to meet relevant requirements of the Companies Act, Standards on Quality Control (SQC 12), standards on auditing in several significant respects, and was grossly negligent and failed to apply professional ske.
Category : NFRA | Comments : 0 | Hits : 198
Get Free Daily Updates Via e-Mail on Income Tax, Service tax, Excise and Corporate law
Search News
News By Categories More Categories
- Income Tax Dept serves notices to salaried individuals for documentary proof to claim exemptions
- Bank Branch Audit 2021 - Update on allotment of Branches
- Bank Branch Audit 2020 Updates
- Bank Branch Audit 2021 Updates
- Bank Branch Audit 2020 - Update on Allotment of Branches
- Police Atrocities towards CA in Faridabad - Its Time to be Unite
- Bank Branch Statutory Audit Updates 2019
- Bank Branch Statutory Audit Updates
- Bank Branch Audit 2022 Updates
- Bank Branch Statutory Audit Updates
- NFRA Imposes Monetary penalty of Rs 1 Crore on M/s Dhiraj & Dheeraj
- ICAI notifies earlier announced CA exam dates despite pending legal challenge before SC
- NFRA debars Auditors, imposes Rs 50 lakh penalties for lapses in Brightcom, CMIL cases
- GST Important Update - Enhancement in the GST Portal
- NFRA Slaps Rs 5 lakh Penalty on Audit Firm for lapses in Vikas WSP Audit Case
- CBDT extends due date for filing Form 10A/10AB upto 30th June, 2024
- RBI comes out with FEMA regulations for direct listing on international exchange
- RBI directs payment firms to track high-value, fishy transactions during elections
- NCLT orders insolvency proceedings against Subhash Chandra
- Income Tax dept starts drive to dispose of appeals, 0.54 million at last count
- Payment of MCA fees –electronic mode-regarding
- Budget '11-12' Parliament Completes Approval Exercise
- Satyam restrained from operating its accounts
- ICICI a foreign firm, subject to FDI norms: Govt
- Maha expects Rs 15 crore entertainment tax revenue from IPL
- CAG blames PMO for not acting against Kalmadi
- No service tax on visa facilitators: CBEC
- Provision of 15-minutes reading and planning time allowance to the candidates of Chartered Accountants Examinations
- Companies Bill to be taken up in Monsoon Session
- File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000
Comments