While conducting statutory Audit of ABC Ltd., you come across I Owe You amounting to INR 2 crores as against a cash balance shown in books of INR 2.10 crores.You observe that despite similar high balances throughout the year, small amounts of INR 50,000 are withdrawn from the bank to meet day-to-day expenses.
May 27, 2020
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In relation to laws and regulations that do not have a direct effect on the idetermination of the amounts and disclosures in the financial statements, but compliance with which may be fundamental to the operating aspects of the business, to an entity's ability to continue its business, or to avoid material penalties, the auditor's responsibility is
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