ICAI introduces revised audit report format for non-corporates

🧮 Audit Quality Gets a New Focus — Be Ready The Institute of Chartered Accountants of India (ICAI) has recently flagged 388 serious audit and financial reporting lapses through its Financial Reporting Review Board (FRRB). Of these, 205 cases have been referred for disciplinary action, and 183 to regulators. 💡 What this signals: • Audit firms and professionals must sharpen focus on true‑and‑fair reporting, not just formal compliance. • Reporting frameworks, documentation and professional scepticism are under scrutiny more than ever. • For the audit ecosystem as a whole, this suggests that independence, rigour and transparency are gaining precedence in audit reviews and oversight. 🔍 Key takeaway for audit‑practitioners and businesses: Even if you’re a non‑listed entity or a smaller firm, audit quality expectations are rising. Ensuring your controls, documentation, judgement calls, and audit evidence are robust matters — now more than ever. #AuditUpdate #FinancialAudit #ICAI #FRRB #AuditQuality #FinancialReporting #CharteredAccountants #IndiaAudit #Governance #InternalControls #RkAssociates

📘 ICAI Publication Alert: “Handbook on Certificates by Chartered Accountants — A Comprehensive Professional Reference” We are pleased to highlight the release of the Institute of Chartered Accountants of India’s (ICAI) latest publication — “Handbook on Certificates by Chartered Accountants: Comprehensive Checklist & Formats” (October 2025 Edition). Issued under the Centre for Audit Quality Directorate, this handbook provides a detailed, framework-based approach for Chartered Accountants in issuing professional certificates with due rigor, accuracy, and compliance. 🔍 Key Highlights • Comprehensive Guidance: Explains procedures, underlying principles, and essential components that must be incorporated in professional certificates. • Assurance Framework: Differentiates between reasonable assurance and limited assurance certificates for accurate application across engagements. • Opinion Categorization: Clarifies modified vs unmodified opinions, particularly where scope limitations exist. • Structured Reference Material: Includes procedural checklists, certificate formats, and illustrative examples aligned with ICAI’s Guidance Note on Reports or Certificates for Special Purposes (Revised 2016). • UDIN Compliance: Mandates the use of Unique Document Identification Number (UDIN) and features an integrated FAQ section for practitioners. 🎯 Professional Relevance 1.This handbook is a vital resource for audit and assurance teams, reinforcing the importance of documentation discipline, professional judgment, and adherence to quality control standards in certificate issuance. 2.In today’s regulatory environment, certificates issued by Chartered Accountants remain instruments of trust—relied upon by banks, regulators, financial institutions, and other stakeholders. 3.This publication provides timely and structured guidance to ensure uniformity, consistency, and credibility in all certificate-based attestations. 4.We encourage all members and firms to refer to this handbook, integrate its checklists and methodologies within internal workflows, and align certificate issuance practices with ICAI’s professional standards of quality. #ICAI #CharteredAccountants #AuditQuality #Certificates #Assurance #Compliance #UDIN #ProfessionalStandards #CentreForAuditQuality #HandbookRelease

📘 ICAI issues “Handbook on Certificates by Chartered Accountants – Comprehensive Checklist and Formats” A very useful and practical publication for all practicing Chartered Accountants! This handbook provides detailed checklists, formats, and guidance for various certificates that Chartered Accountants are required to issue in professional practice — ensuring accuracy, consistency, and compliance in attest functions. A must-have reference for every CA involved in certification work. #ICAI #CharteredAccountant #Audit #Certification #ProfessionalResources #CAIndia #AccountingProfession #Compliance #PracticeTools

The Institute of Chartered Accountants of India (ICAI) has just released the October 2025 “𝐇𝐚𝐧𝐝𝐛𝐨𝐨𝐤 𝐨𝐧 𝐂𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐞𝐬 𝐛𝐲 𝐂𝐀𝐬” and honestly, this is something every practicing CA should take a look at. For years, we’ve all used our own formats for certificates; net worth, fund utilization, working capital, turnover and hoped we didn’t miss a clause or disclosure. But this new handbook changes that. It actually brings ready-to-use formats, checklist templates, and clear guidance notes on how to handle common errors and disclosure requirements. What I really like is that ICAI, for once, isn’t just regulating it’s actually simplifying. This move could finally bring consistency, reduce client disputes, and give CAs more confidence while certifying. Because let’s admit it, we have all double-checked a certificate’s wording three times before signing. This handbook might finally make that process a little easier. #icaiupdates #charteredaccountant #auditandassurance #compliance

ICAI Issues FAQs On Auditor’s Opinion on financial statements https://lnkd.in/d3xRsHUW #faqs #icai #auditor #opinion #financialstatement #news #breaking The Institute of Chartered Accountants of India (ICAI) has released a comprehensive set of Frequently Asked Questions (FAQs) clarifying the applicability and procedure for reporting the Auditor’s Opinion on financial statements while generating a Unique Document Identification Number (UDIN). The initiative seeks to ensure uniformity, accuracy, and compliance in audit reporting across various statutory and professional assignments.

⚠️ Imagine this… You finish your audit work, sign the financial statements, and upload them on the MCA portal. Everything seems fine - until you receive a disciplinary notice from ICAI. What happened? Turns out, the financial statements weren’t approved or signed by the company’s directors before you signed them. During the hearing, it was found that: 📄 The set uploaded on MCA had only the auditor’s signature. 📑 Another version - produced later - carried both auditor’s and directors’ signatures. 🔍 Even the rubber stamp differed, indicating that the second set was created after the lapse was noticed. The Committee observed that the member failed to exercise due diligence and was held guilty under 👉 Item (7) of Part I of the Second Schedule to the Chartered Accountants Act, 1949 - for failure to exercise due diligence or gross negligence. 💡 Key Takeaways for Every CA: ✔️ Never sign financial statements unless they’re duly approved and signed by the Board. ✔️ Always exercise professional skepticism - don’t rely on assumptions. ✔️ One small oversight can damage years of reputation. As professionals, our signature carries trust. Let’s make sure it never appears on a document before it should. #CA #ICAI #Ethics #Audit #ProfessionalMisconduct #DueDiligence #CorporateGovernance #Integrity #CAStudents #MemberAwareness #CharteredAccountant

Audit at ₹1 !! Yes you heard that right......that’s the fee quoted and accepted for a statutory audit assignment recently. Honestly, this is not just shocking, it’s scary ! We keep talking about corporate governance, accountability, transparency… but then we’re ready to pay ₹1 for an audit? That’s not just undervaluing the CA profession, that’s undervaluing the very purpose of audit itself. Let’s be real, No one can perform a proper audit for ₹1. This means either: 1.⁠ ⁠Audit quality will take a backseat, or 2.⁠ ⁠The whole thing is being reduced to a tick-box compliance. 3. Also makes one think, is there any hidden incentive behind this? 🤔 And the worst part? This sets a terrible precedent. Because once we normalize this, tomorrow every audit becomes just a “formal appointment” with no real substance. CA profession was built on trust and credibility. But moves like this erode that trust brick by brick. Maybe the question we should be asking isn’t “Who quoted the lowest?” “Who can deliver quality and safeguard stakeholders’ interests?” Because let’s be honest, trust cannot come at ₹1. #Audit #CAprofession #ICAI #StatutoryAudit

🔍 Key Changes in UDIN Generation When generating UDIN, members are now required to: Confirm whether Auditor’s Opinion is applicable to the engagement. Select the type of opinion (Unmodified / Qualified / Adverse / Disclaimer). Indicate presence of: ▪️ Key Audit Matter (KAM) ▪️ Emphasis of Matter (EOM) ▪️ Other Matter ▪️ Material Uncertainty related to Going Concern Choose the Entity Type (Listed / Non-Listed) and sub-category for non-listed entities. 📘 Highlights from ICAI FAQs: Auditor’s Opinion is compulsory for GST & Tax Audits and Audit & Assurance functions. Not applicable for Concurrent, Stock, Revenue, or Internal Audits, Valuations, or Compilations (SRS 4410). Required in Tax Audits (u/s 44AB), as Form 3CB involves an opinion on financial statements. Guidance provided for reporting under SA 570 (Going Concern), SA 705 (Modified Opinions), and audit trail & internal financial controls scenarios. 💡 Professional Insight This structured approach enhances audit quality and strengthens the credibility of financial reporting by aligning UDIN disclosures with relevant Standards on Auditing (SAs). 🧮 A step towards better audit documentation and accountability. #ICAI #UDIN #AuditUpdate #CharteredAccountant #Assurance #AuditingStandards #TaxAudit #FinancialReporting

The practice of firms quoting an abysmal 10-15% of the minimum departmental cost in tenders is a serious threat, not only defaming the Chartered Accountancy profession but also fundamentally degrading audit standards. This aggressive undercutting makes quality work unsustainable, turning crucial professional assignments into mere rubber-stamping exercises. We urge the torchbearers of the ICAI and all Central Council Members (CCMs) to move beyond "slow and silent mode." The existing ICAI guidelines against participating in tenders without a prescribed minimum fee, and quoting below it where specified, are clear. It's time for the Disciplinary Directorate to swiftly issue notices and take stringent, visible action against these violating firms. The integrity of our profession cannot be a casualty of predatory pricing. We demand accountability and immediate enforcement of the ethical and tendering standards. Anuj Goyal Abhishek Raja "Ram" CA Atul Agrawal CA. Abhay Chhajed Dr. Amarjit Chopra CA Charanjot Singh Nanda The Institute of Chartered Accountants of India (ICAI) CA (Dr) Raj Chawla Vijay Kapur

🚨 ₹𝟏 𝐒𝐭𝐚𝐭𝐮𝐭𝐨𝐫𝐲 𝐀𝐮𝐝𝐢𝐭 𝐅𝐞𝐞 – 𝐖𝐡𝐨’𝐬 𝐑𝐞𝐚𝐥𝐥𝐲 𝐚𝐭 𝐅𝐚𝐮𝐥𝐭? 🚨 News broke that a subsidiary of 𝐍𝐇𝐀𝐈 (𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐇𝐢𝐠𝐡𝐰𝐚𝐲𝐬 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐭𝐲 𝐨𝐟 𝐈𝐧𝐝𝐢𝐚) awarded its 𝐬𝐭𝐚𝐭𝐮𝐭𝐨𝐫𝐲 𝐚𝐮𝐝𝐢𝐭 𝐚𝐭 𝐣𝐮𝐬𝐭 ₹𝟏. Naturally, fingers pointed at the CA firm. But let’s ask — is the firm really at fault? 🔍 𝐊𝐞𝐲 𝐅𝐚𝐜𝐭𝐬: -The tender itself fixed the minimum fee at ₹1. -ICAI Guidelines permit bidding if a minimum fee is prescribed. The 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐒𝐜𝐚𝐥𝐞 𝐨𝐟 𝐅𝐞𝐞𝐬 𝐢𝐬 𝐨𝐧𝐥𝐲 𝐫𝐞𝐜𝐨𝐦𝐦𝐞𝐧𝐝𝐚𝐭𝐨𝐫𝐲, 𝐧𝐨𝐭 𝐛𝐢𝐧𝐝𝐢𝐧𝐠. -Firms sometimes take such assignments for 𝐠𝐨𝐨𝐝𝐰𝐢𝐥𝐥 𝐚𝐧𝐝 𝐞𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞 𝐜𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐞𝐬 — 𝐧𝐨𝐭 𝐢𝐦𝐦𝐞𝐝𝐢𝐚𝐭𝐞 𝐫𝐞𝐯𝐞𝐧𝐮𝐞. -Audit quality will still be reviewed by CAG, NFRA, QRB, and regulators, irrespective of fee. 𝐋𝐞𝐠𝐚𝐥𝐥𝐲 𝐚𝐧𝐝 𝐞𝐭𝐡𝐢𝐜𝐚𝐥𝐥𝐲, 𝐭𝐡𝐞 𝐟𝐢𝐫𝐦 𝐡𝐚𝐬 𝐧𝐨𝐭 𝐞𝐫𝐫𝐞𝐝. The real issue lies in government tender design, which reduces statutory audits — a cornerstone of governance — to a token amount. ⚖️ Final Takeaway: Don’t blame professionals for playing by the rules. If dignity of audit is to be protected, tendering norms need urgent reform — not scapegoating of auditors. 💭 What’s your view? Does a ₹1 audit damage professional integrity, or should we shift the debate to flawed policies? #Audit #Ethics #CA #ICAI #CorporateGovernance #StatutoryAudit #NFRA #NHAI