MCA has notified the Companies (Audit and Auditors) Amendment Rules, 2017 and Amendment to Schedule III to the Companies Act, 2013 on 30 Mar. 2017, i.e. a new Rule 11(d) has been inserted in the Companies (Audit and Auditors) Rules, 2014 requiring auditors to report on whether the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 Nov. 2016 to 30 Dec. 2016 and if so, whether these are in accordance with the books of accounts maintained by the company. Amendment has also been made to Schedule III to the Companies Act, 2013 to require that every company shall disclose the details of Specified Bank Notes held and transacted during the said period in the specified format.
Accordingly, to provide appropriate guidance to the members on this new reporting obligation cast on statutory auditors of companies; the AASB of ICAI has come out with an “Implementation Guide on Auditor‘s Report under Rule 11(d) of Companies (Audit and Auditors) Amendment Rules, 2017 and Amendment to Schedule III to Companies Act, 2013“, so that members can discharge their reporting obligation in an effective manner.
This Implementation Guide has been written in an easy to understand language and contains detailed guidance on various issues involved.