NFRA Orders, Learnings and Way forward for CA Firms-2

Powers of NFRA is given under which Section ?

• Sec 132(1)

• Sec 132(2)

• Sec 132(3)

• Sec 132(4)

Which of the following is violation of Clause 9 Schedule II Part I by the Auditor?

• Failure to disclose a material fact known to them which is not disclosed in a financial statement, but disclosure of which is necessary in making such financial statement where the Chartered Accountant is concerned with that financial statement in a professional capacity. 

• Failure to report a material misstatement known to them to appear in a financial statement with which the CA is concerned in a professional capacity.

• Failure to exercise due diligence and being grossly negligent in the conduct of professional duties.

• Failure to invite attention to material departure from the generally accepted procedures of audit applicable to the circumstances.

Which Engagement Partner was charged with failure to evaluate the appropriateness of accounting policy adopted by the company for not recognizing full interest cost on borrowings classified as NPA by the Banks?

• CA Ratan Laxminarayan Rathi

• CA Anil Chauhan

• CA Som Prakash Aggarwal

• CA Krishna Kr Neeraj

Which company did not recognize the full interest cost on its borrowings from banks classified as Non-Performing Assets?

• Seya Industries Limited

• Vikas WSP

• Bilcare Ltd.

• CMI Ltd.

Which of the following is violation of Clause 7 Schedule II Part I by the Auditor?

• Failure to disclose a material fact known to them which is not disclosed in a financial statement, but disclosure of which is necessary in making such financial statement where the Chartered Accountant is concerned with that financial statement in a professional capacity. 

• Failure to report a material misstatement known to them to appear in a financial statement with which the CA is concerned in a professional capacity.

• Failure to exercise due diligence and being grossly negligent in the conduct of professional duties.

• Failure to invite attention to material departure from the generally accepted procedures of audit applicable to the circumstances.