I have read 3-4 Limited company Annual returns. I am surprised of seeing one important aspect in Profit & Loss account. Which is hats off to C.A.
ANYONE CAN GUESS.....
1. It is compulsory to present in the Profit & loss account
2. It is compuisory to present in notes of accounts.
Reply if you have observed the same
You are talking of audit fees i believe. Audit fees is to be seperately disclosed in Profit and Loss schedules and notes to accounts.
Yes listed companies are audited by Big 4 firms and you must be amazed by audit fees amounts. They charges heavy fees and that is a motivation for all other CA's to work hard and reach that target.
I AM TELLING THAT THOUGH THERE IS INCREASE OF COST IN ALL THE SECTORS. JUST SEE THE AUDIT FEES, IT IS SAME IN PREVIOUS YEAR AND CURRENT YEAR
Yes, most of the company see Audit fee as unwanted overhead beating the bottomline. Audit on general may look unwanted on company level but if we analyse the impact of audits in overall finance system, you will realise how important audits are.
Auditors are the one who ensures fairness of data provided to stock markets by companies. I believe with more maturity in finance system will put more responsibilities on auditors and companies will soon realise importance of audits and auditors.