Auditor's Reporting of Cash Losses
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Questions and Answers

According to the relevant provisions, what does this clause require the auditor to report?

  • The figure of cash losses for the period covered by the audit report
  • The amount of cash losses for the immediately preceding financial year
  • The figure of cash losses for the immediately preceding financial year
  • Whether the company has incurred cash losses during the period covered by the audit report (correct)

What is the term 'cash losses' NOT defined in?

  • The financial statements of the company
  • The accounting standards (correct)
  • The Indian accounting standards
  • The Act

Why is the figure of cash losses not readily available from the financial statements of the company?

  • It is not required to be disclosed in the financial statements
  • It is not relevant for financial reporting
  • It is difficult to calculate (correct)
  • It is only disclosed in the auditor's report

What does the term 'cash losses' need to be distinguished from?

<p>Distributable surplus (C)</p> Signup and view all the answers

What does the auditor need to determine for reporting under this clause?

<p>The amount of cash losses for the financial year immediately preceding the period covered by the audit report (D)</p> Signup and view all the answers

According to the relevant provisions, what does this clause require the auditor to report?

<p>Whether the company has incurred cash losses during the period covered by the audit report and in the immediately preceding financial year.</p> Signup and view all the answers

Is the term 'cash losses' defined in the Act and the accounting standards/Indian accounting standards?

<p>No, the term 'cash losses' is not defined in the Act and the accounting standards/Indian accounting standards.</p> Signup and view all the answers

Why is the figure of cash losses not readily available from the financial statements of the company?

<p>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.</p> Signup and view all the answers

What does the term 'cash losses' need to be distinguished from?

<p>The term 'cash losses' needs to be distinguished from 'distributable surplus'.</p> Signup and view all the answers

What does the auditor need to determine for reporting under this clause?

<p>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.</p> Signup and view all the answers

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