CA Intermediate · Auditing and Ethics · Special Features of Audit of Different Type of Entities

CA Rohan is auditing Bharat Ganesh Co-operative Housing Society. During the audit he finds that the society has not yet held its annual general body meeting, though the financial year ended four months ago, and the managing committee asks him to sign the audit report now so it can be placed before the meeting. The audit has been completed. What is the correct position?

He may sign the report once he has obtained sufficient appropriate audit evidence. The audit report is meant to be placed before the members along with the financial statements at the general body meeting, so adoption by members comes after the report and is not a precondition for it.

1. AHe cannot sign the report until the general body appoints him at the meeting, which makes the report invalid before then
2. BHe should refuse to sign, as an audit report may be issued only after the financial statements are adopted by the members
3. CHe may issue the report on the basis of sufficient appropriate audit evidence, since the financial statements are placed before the members along with the audit report at the meeting for adoptionCorrect
4. DHe must first obtain the Registrar's approval of the accounts before signing the report