| The Council at its 106th meeting held in July, 1983, decided that the reopening or rectification of accounts after they have been adopted at the annual general meeting should not be permitted under any circumstances. A note to this effect was published in the Institute’s Journal in August, 1983. On representations received from various quarters and after considering the fact that the Department of Company Affairs had taken a different view, the Council reviewed the position and issued another note in February, 1985. In this note it was explained that ordinarily, the accounts once adopted at the annual general meeting cannot be reopened. However, if the company decided to reopen its accounts which have been adopted at the annual general meeting for meeting certain technical requirements of taxation laws and prepared a revised/rectified financial statements, the Council advised the auditors to examine the revised/rectified financial statements and give the report in a manner suggested in the note. The Council has also clarified that the Department of Company Affairs has agreed with the above procedure. |
| The Guidance Note also contains an illustrative format of the auditor’s report on revised/ rectified accounts. |
Issued in August, 1983.
Published in the Handbook of Auditing Pronouncements, Vol. II (Edn. 2005). Not available separately. | | |
