Signaling a high sign..! Avoiding fradulent audit acts, ICAI now makes UDIN mandatory for Audit Reports

06 Jun 2019 09:30:00
New Delhi, June 6: Waking ahead in the light of recent fraudulent cases and actions lensed in the in auditing processes by even renowned firms like Deloitte and EY, the Institute of Chartered Accountants of India has made it mandatory for all the Chartered Accountants to mention the Unique Document Identification Number in all audit reports from July 1, 2019.

 
“With a view to bring uniformity in the manner of signing audit reports by the members of ICAI, it has been decided to require the members of ICAI to also mention the UDIN immediately after the ICAI’s membership number while signing audit reports. This requirement will be in addition to other requirements relating to the auditor’s signature prescribed in the relevant law or regulation and the standards on auditing. This requirement will come into effect from July 1, 2019,” the ICAI said in an announcement.
 
UDIN is an 18 digit system generated unique number for the identification of every document attested by practicing chartered accountants. UDIN was initially introduced as ICAI observed that certain unscrupulous individuals are posing as CAs and forging signatures to issue certificates and other such documents with the intent of misleading authorities and stakeholders.
 
Currently, full-time practicing chartered accountants have to mandatorily generate UDIN for the documents issued by them. As per the mandate schedule of ICAI, UDIN was made mandatory for all certificates from February 1, 2019 and for all GST and tax audit reports from April 1, 2019.
 
The attestation of a CA on a document or any certificate is of enormous value since it generally shows that the CA has ensured and that there is no falsification in the issued or submitted document by the company or entity. An audit report issued by the auditor in respect of the financial statements is the prime example of this.
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