10 Questions
According to the relevant provisions, what does this clause require the auditor to report?
Whether the company has incurred cash losses during the period covered by the audit report
What is the term 'cash losses' NOT defined in?
The accounting standards
Why is the figure of cash losses not readily available from the financial statements of the company?
It is difficult to calculate
What does the term 'cash losses' need to be distinguished from?
Distributable surplus
What does the auditor need to determine for reporting under this clause?
The amount of cash losses for the financial year immediately preceding the period covered by the audit report
According to the relevant provisions, what does this clause require the auditor to report?
Whether the company has incurred cash losses during the period covered by the audit report and in the immediately preceding financial year.
Is the term 'cash losses' defined in the Act and the accounting standards/Indian accounting standards?
No, the term 'cash losses' is not defined in the Act and the accounting standards/Indian accounting standards.
Why is the figure of cash losses not readily available from the financial statements of the company?
The figure of cash losses is not readily available from the financial statements of the company because it needs to be determined separately for the period covered by the audit report and the financial year immediately preceding the period covered by the audit report.
What does the term 'cash losses' need to be distinguished from?
The term 'cash losses' needs to be distinguished from 'distributable surplus'.
What does the auditor need to determine for reporting under this clause?
The auditor needs to determine the figure of cash losses for the period covered by the audit report and for the financial year immediately preceding the period covered by the audit report.
Test your knowledge on the relevant provisions regarding reporting of cash losses by auditors for companies. This quiz will assess your understanding of the requirements and responsibilities of auditors in reporting cash losses for the audit period and the preceding financial year.
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