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CS Professional · Compliance Management, Audit and Due Diligence · Concepts of Various Audits

While performing a secretarial audit of Ganga Foods Ltd, the Company Secretary in practice is denied access to certain statutory registers by the management. What is the most appropriate action in the secretarial audit report?

The auditor should disclose the scope limitation caused by denied access and qualify the secretarial audit report accordingly. Issuing a clean report or relying on last year's records would be misleading, and the statutory auditor cannot sign a secretarial audit report.

  1. AIssue a clean report assuming the registers are in order
  2. BState the limitation on scope and its effect, qualifying the report accordinglyCorrect
  3. CPrepare the report from last year's registers
  4. DAsk the statutory auditor to sign the report

Explanation

A restriction on access is a limitation of scope. The auditor should disclose it in the report and qualify it, rather than issue a clean report or rely on prior-year records. Only the secretarial auditor signs the secretarial audit report, not the statutory auditor.

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