Rithik Jain

• The NFRA fined M/s Venkatesh & Co ₹2 crore for professional misconduct in the 2019-20 Coffee Day Enterprises audit. • Auditors Dasaraty V and Desikan G were banned for 10 and 5 years, respectively. • Dasaraty was also fined ₹10 lakh, and Desikan ₹5 lakh. • The penalties stemmed from a Sebi report revealing a ₹3,535 crore fund diversion from Coffee Day subsidiaries to Mysore Amalgamated Coffee Estate Limited. • The auditors failed to report the fraud and protect public interest. • The order will take effect after 30 days. • In August, NFRA fined KPMG affiliate M/s BSR & Associates LLP ₹10 crore and debarred two auditors for lapses in the 2018-19 Coffee Day audit.

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gstn has issued an advisory relating to issues in filing gstr 9 of fy 23 24 .as auto population of table 8A in gstr 9 is based on gstr 2B of fy 23 24 as against the practice in earlier years when table 8A was auto populated based on gstr 2A of respective plus invoice of that financial year appearing in gstr 2A of next year minus invoices of previous financial year appearing in gstr 2A of current fy in other words table 8A of gstr 9 upto fy 22 23 auto populated on the basis of date of invoice . accordingly credit of that invoice even if claimed in gstr 3B of next fy was reported in table 8C however in gstr 9 of fy 23 24 is auto populated on the basis of gstr 2B of fy 23 24 irrespective of date of invoice accordingly advise of #gstn to reports invoices of fy 23 24 appearing in gstr 2B of fy 24 25 at table 8C of gstr 9 of fyb23 24 is not proper and would lead to negative figure at table 8D triggering notice and unnecessary litigation suitable instructions/clarification should be issued by CBIC that only itc appearing in gstr 2b of fy 23 24 but claimed in gstr 3b of fy 24 25 need to be reported at table 8C of gstr 9 of fy 23 24. invoice of fy 23 24 appearing in gstr 2b of fy 24 25 and claimed in gstr 3b of fy 24 25 should not be reported at table 8C of fy 23 24 #GST #GSTN #GSTR9 #CBIC

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TOP AUDIT FIRMS RANKING✨✨ India's Big Six audit firms reign supreme, but for how long? 👉🏻67% of Nifty-500 companies entrust them with their finances (323/483) 👉🏻32.5% of all listed companies rely on them (637/1961) ✨EY takes the crown, auditing 164 companies, followed closely by KPMG (141) and Deloitte (119) ✨BUT, audit rotation regulations are about to change the game! 👉🏻222 auditors in 209 companies face tenure expiries in 2024-25 👉🏻224 auditors in 215 companies in 2025-26 👉🏻A whopping 883 auditors in 868 companies in 2026-27 📌📌Who will seize the opportunity?👀👀 Drop your thoughts into the comment section ✅✅ #AuditFirms #Nifty500 #ListedCompanies #AuditRotation #RegulatoryChanges #linekdin #audit #topfirms #kpmg #ey #ranking #india

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✅ The current tussle of NFRA and ICAI over the adoption of ISA 600 issued by the International Auditing and Assurance Standards Board (IAASB) will be an interesting one. ✔️ I hope the newspaper reports are correct and this matter will be deliberated in the upcoming ICAI council meeting. ✔️ #India generally converges the international standards instead of adopting. Some carve-outs and carve-ins are always there. ✔️ In india, seperate component auditors are appointed in banking, insurance sector and some other public sector companies. ✔️ Lets wait for the response from ICAI council. I am sure Council will also take the views of partners from Big firms and eminent Chartered Accountants. ✔️ #MCA should mediate as it is the parent body of both #ICAI and #NFRA. ▶️ Views are personal.

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GSTR-9 Mismatch Alert: Table 8A vs 8C for FY 2023-24! GSTR-9 auto-populates ITC from GSTR-2B in Table 8A, but Table 8C needs manual entries for ITC claimed in the next FY. ⚠️ Key Points to Avoid Discrepancies: 1️⃣ Late Invoices – Report ITC in Tables 8C & 13. 2️⃣ Reclaimed ITC – Declare in the subsequent FY (e.g., FY 2024-25). 3️⃣ Goods Not Received – Include ITC in Tables 8C & 13. 4️⃣ Prior Year ITC – Exclude from FY 2023-24. 5️⃣ Same-Year Reclaim – Use Table 6H to avoid duplication in Table 7. 📊 Stay compliant and ensure accurate reporting! #GST #GSTR9 #ITC #TaxCompliance #CharteredAccountants #IndirectTax

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🔥NFRA's Strict Penalties Serve as a Warning to Auditors. What is your take on this news? 👉 A CA and his firm were debarred by NFRA for not submitting the audit file within 60 days, and they were fined ₹2 lakhs for major audit lapses. 👉 Let me take you to its backstory. The CA, EP, was the statutory auditor for Vikas Proppant and Granites Limited. NFRA found that the auditors failed to comply with critical auditing standards, showing gross negligence in auditing.  As per SQCI Paragraph 75 and SA 230 Audit Documentation Paragraph A21, auditors must finalise the audit file within 60 days of the report date. The NFRA found that the CA exhibited multiple instances of misconduct, including: 🔹 Failure to plan the audit effectively. 🔹 Inadequate understanding of the entity's nature and environment. 🔹 Neglecting to evaluate the Internal Audit Function. 🔹 Failing to determine materiality appropriately. 🔹 Not reporting on non-provisioning for Expected Credit Loss. 🔹 Inadequate evaluation of arm's length pricing for Related Party Transactions. 🔹 Failing to report on non-charging of depreciation for leasehold land and machinery. 🔹 Insufficient external confirmations for audit evidence. 🔹 Not appointing an Engagement Quality Control Reviewer (EQCR). Given these findings, the NFRA determined that the CA had not adhered to the required auditing standards, which are essential for ensuring the quality and credibility of financial statements for listed companies. Consequently, the NFRA imposed a ₹2 lakh penalty and debarred the CA and his firm from conducting audits or internal audits for any company or body corporate. This has become an alarming situation for auditors and for this year's audits NFRA’s strict observation has created more awareness. What are your thoughts on the same? Follow CA Archit Agarwal for such insights. #audit #NFRA #CA #fines #penalty.

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Update: Not taking new requests anymore. [05 Aug 📰] PwC India is hiring CA ARTICLES in STATUTORY AUDIT and TRANSFER PRICING domain for the following locations: 📍 Bangalore (Audit) 📍 Ahmedabad (Audit) 📍 Chennai (Audit & TP) 📍 Pune (TP) If you're interested in an employee referral, please fill out this form: https://lnkd.in/gxfeTkV9 Please only apply if you have not been referred by anyone else at PwC in the last 180 days. Disclaimer: I'll only be able to refer VERY LIMITED people, and filling out the form does not guarantee a referral. #pwc #jobs #articleship #caarticles

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♂️ The #ICAI should have been a game changer but it has always resisted the change. [1] At the time of creation of the National Financial Reporting Authority (NFRA) [2] At the time of revision of #SA600 in line with #ISA600 saying that only ICAI has the power to issue exposure draft [3] At the time of sending #SQMs to NFRA stating they are not SAs What is the result now? ▶️ Could a better dialogue and representation have changed the scenario? ▶️ Will The Institute of Chartered Accountants of India approach the Ministry of Corporate Affairs in relation to Ind SAs? What will be the next step of the ICAI, only time will tell. I hope the better sense prevails. Follow CA. Devender Pandey 🇮🇳 for more such insights. #auditing #assurance #standards #mca

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NFRA and ICAI at Odds Over Plans to Sync Audits with Global Norms! Who is NFRA?   The National Financial Reporting Authority (NFRA) is an independent regulator overseeing the auditing profession and Indian Accounting Standards under the Companies Act 2013. Why are NFRA and ICAI at odds, despite both working for the betterment of auditors?   The tension arises from differing roles and regulatory approaches. The Institute of Chartered Accountants of India supports self-regulation and auditor interests, while NFRA focuses on stricter oversight, emphasizing public interest and audit quality. This divergence creates friction as both strive for auditor improvement. NFRA’s draft norms overhaul the existing Standard on Auditing (SA) 600, affecting listed companies and banks, except state-run ones.  ICAI fears that these norms could concentrate audit work among larger firms, adversely impacting small and medium practitioner firms. ICAI also opposes mandating principal auditors to assess the competence of component auditors, arguing that all auditors share the same education, training, and licensing under ICAI. What is the take of other regulatory bodies? Despite these concerns, the Comptroller & Auditor General of India, Reserve Bank of India (RBI), and Securities and Exchange Board of India (SEBI) support aligning domestic audit standards with global ones. NFRA believes this revamp is essential to prevent corporate fraud by fostering greater accountability among auditors, whose work impacts millions of retail investors. #auditreforms #icai #nfra #auditquality #corporategovernance 

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National Financial Reporting Authority (NFRA) Vs. The Institute of Chartered Accountants of India. The Economic Times Reports that the #NFRA may take up revising all 35 Audit Standards in their meeting next week 👇 https://lnkd.in/gepNhwpb I Do not think that this will end well for #ICAI!! #NFRA will not embark on revising all Auditing standards without a blessing from the Ministry Of Corporate Affairs & Ministry of Finance. Mr. Ajay Bhushan Pandey, the current chairperson of NFRA, is a Former Finance Secretary of India. Bureaucrats don't mess around unless they have a clear go ahead from powers that be. If #NFRA finally does end up revising all standards, it would be a serious loss of face for #ICAI. Their raison d'être (Reason for existence) would be under threat. My View: Better that ICAI works with NFRA rather than fight them. #icai #nfra #auditingstandards #mca

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#SA600 #ProposedOverhaul #Groupaudit #Consoaudit #Principalauditor #componentaudit #NFRA #ICAI

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The National Financial Reporting Authority (NFRA) will hold a board meeting on November 25 to discuss audit standards for LLPs, with representatives from the Institute of Chartered Accountants of India (ICAI) attending. This follows NFRA’s recent discussions on revising Standards on Auditing 600 to align with international norms. Currently, LLPs with a turnover below ₹40 lakh or contributions under ₹25 lakh are exempt from audits unless chosen by partners, as per Rule 24 of LLP, Rules 2009. NFRA and ICAI aim to recommend new audit guidelines for LLPs to the Ministry of Corporate Affairs, enhancing clarity for these popular hybrid business structures. source: https://lnkd.in/gnfiKckG

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Big News: NFRA to Inspect Big 4’s!!! Birds Eye View:🎯 👉 National Financial Reporting Authority (NFRA) will inspect the Big 4 Audit firms: - Deloitte India - EY (SRBC & Co) - KPMG (BSR & Co) - PwC - Walker Chandiok & Co (Grant Thornton) Object of Inspection: 👉 To ensure compliance of ICAI’s Audit Standards and Guidelines with main focus on: → Providing Non-Audit services with Auditing Services. → Auditors' independence and communication with company directors. → Documentation Scope of Inspection: To check and enforce audit quality, approximately 60 listed companies will be examined for compliance with auditing standards due to: → Increase in no. of professional misconduct cases. → Increase in qualitative irregularities in audits. Impact of Inspection: → Better quality of financial reporting. → Geater transparency and accountability in the auditing profession. #NFRA #BIG4 #ICAI #Audit

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****GST Update**** GSTN advisory on Invoice Management System (IMS) - Advisory dated 03.09.2024 Touted to be the biggest enhancement in the ITC ecosystem of GST portal, a new functionality called the Invoice Management System (IMS) will be launched from October 1, 2024. This facility is aimed to facilitate the taxpayers in matching of their records/invoices vis-a-vis those issued by their suppliers for availing the correct ITC and shall allow the recipient taxpayers to either accept or reject an invoice or to keep it pending in the system, which can be availed later. Better late than never, this step should eventually augur well with the stakeholders. Let's hope the execution of the facility is as smooth as the promotion of it's objective and the taxpayers are given adequate time to get familiar with the new system. Singhvi Dev & Unni LLP, Chartered Accountants #advisory #GST #portal #newsystem #ITC #reconciliation

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In F&O, tax audit is applicable if: - You are declaring profit < 6% of turnover or there is a loss; AND - Total income > basic exemption limit (2.5 lacs/ 3lacs). 📌Notice extract where my client didn't have turnover above 1CR, yet was mandated to get an audit. #incometax

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🚨 ICAI Elections and the Role of Practicing CAs 🚨 Lately, I have been receiving numerous #WhatsApp messages and calls from practicing CAs advocating for their preferred candidate in the upcoming ICAI Central/ Regional Council elections. They sometimes call me to tell that the candidate is sitting with them and wants to talk to me. I also get invite occasionally for CA meet which I generally avoid. It is clear that many practicing CAs are deeply invested in these elections. But I sometimes wonder what the real motivation behind promoting a candidate is? 🤔 Are they truly pushing for a representative who will benefit the entire ICAI membership, or is there more at play behind the scenes? Its a question that often remains unanswered. 🚀 Personally, I am hoping to see more fresh faces in the council this time, rather than the usual candidates who have already had their turn. ♂️ Interestingly, over 60% of ICAI members are in service roles and typically don’t engage much with these elections. So, what does this say about the future of ICAI leadership and the direction we are headed in? #ICAI #Elections2024 #CharteredAccountants #Leadership #NewVoices

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I imagined, what if...💭 The Institute of Chartered Accountants of India (#ICAI), the premier accounting body in India used Zoho’s suite of integrated products. This is not a promotion just a wild thought.. 🤔 I have no clue if ICAI actually uses any of these tools. Use Case 1: Streamlining Member Management Problem: Efficiently managing a large membership base and providing personalized services. Solution: Zoho CRM Using Zoho CRM, ICAI can send personalized event invitations and educational material recommendations to members based on their areas of specialization, such as auditing or taxation. Use Case 2: Enhancing Educational Program Delivery Problem: Managing and delivering a wide range of CPE educational programs and resources effectively. Solution: Zoho Learn ICAI can use Zoho Learn to offer interactive online courses on the latest accounting and auditing standards, tax laws etc. ensuring that members stay updated with continuing professional education (CPE) requirements. Use Case 3: Financial Management Problem: Handling complex financial operations, including membership fees, event registrations, and educational program costs. Solution: Zoho Books Zoho Books can automate the billing process for annual membership fees, track payments, and generate financial reports to provide insights into the financial performance of various programs and initiatives. Use Case 4: Document Management and Collaboration Problem: Managing a vast array of documents, including research papers, regulatory updates, and educational materials. Solution: Zoho WorkDrive ICAI can store all its research publications, standards updates, and educational materials in Zoho WorkDrive, making it easy for members to access and collaborate on documents as needed. Use Case 5: Custom Solutions for Specific Needs Problem: Adapting technology to meet unique organizational requirements and evolving challenges. Solution: Zoho Creator ICAI can create a custom app using Zoho Creator to manage and monitor the compliance status of its members, ensuring that all chartered accountants adhere to the latest standards and regulations. Use Case 6: Event Management Problem: Organizing and managing large-scale events such as conferences, seminars, and workshops. Solution: Zoho Backstage For an annual conference, ICAI can use Zoho Backstage to manage event registrations, create a dedicated event website, engage attendees with interactive sessions, and gather feedback to improve future events. Well, there is a gap. The solutions that have been built have not yet reached the problems that need them. Reimagining certain theories helps fit technology in such real life scenarios. #zoho

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