Not all CAs have the same competency but it would be very infeasible to hold the holding company or the group auditor responsible for subsidiary companies because in the time frame, where the FS information remains viable, it's almost impossible to find a collaborative scheme that allows the group auditor to also asses the subsidiary companies to the level and extent required.
If group auditor is held accountable for subs FS then that raises a question on the competence of another auditor. And the irony is that both the professional qualified the same exams. Edit : However, I deny that all CA hold same level of competence just because they cleared same exams. If we see, prime facie, For a larger organisation, a big Audit firm is appointed which is far more competent and have Tremendous resource to carry execute complex tasks which the case not possible with other. So, NFRA’s Stands hold good in this case. Can’t Compare a Deloitte with Jamnalal Prasad Daya Shankar & associates. Also, I believe this amendment in SA will kick out all the major Audit firm (Especially Big 4) out of Market, Not sure but something shady is going on.
I agree that smaller firms may get sidelined by bigger firms.. But Smaller firms will try to survive by taking up more skilled And competent CA.. So overall it is responsibility on our end to Be more Competent And Meet the eligibility criteria ❤
This was such an informative and interesting video. I don't know much about these things right now as I am just a CA Finalist, but I think NFRA is right here. No risks should be taken in the case of publicly listed companies. Also, Holding Co. and Subsidiary Co. having the same auditors would make the Audit more efficient too.
Not only firms jobs are also at risk. CAs are not getting jobs even this time they are struggling to get jobs in banks offshore firms and IT companies. And our council is busy in elections.
Well explained. NFRA should discuss with ICAI for other ways to tackle these issues. The proposed change will definately going to have a big adverse impact on small CA firms. Although there are some pros also, but cons are comparetively high. All stakeholders's POV should be considered.
I beleive this is going to just benefit the ecosystem. Provided a clear procedure is provided for the Holding Company auditor to audit the books of Subsidiary.
Not all CAs are competent at every task, especially where CAs are required to have expertise in the particular field. The Journey to become CA is uniform and hence all are Qualified after passing the final examination. What is not uniform is the Article ship phase of a student. The article-ship is what makes us competent to perform work as a fresh CA. There is a Goal to complete the article-ship phase for a student which is long term ( 2 years now) This goal should be complimented with short term objectives that has to achieved in the whole article-ship period. task should be performed related to all areas of audit accounting and finance during this phase, mandatorily that would conclude his/her article-ship. That would create more competence among the CAs. Neeraj sir please throw some light on it I would be obliged to get your views on this. (Concept of SM- long term and short term objectives have been implemented here)
the contention of NFRA is somewhat correct as it will reduce class conflicts . whenever there is any discrepancy in the books or any issue rises instead of taking the accountability head office auditor and branch auditor starts blaming each other . even in case of any fraud it become difficult for the authorities to assign the accountability
I work with a Big 4 firm in the statutory audit department and the sad reality is that the client actually takes advantage of the small audit firms auditing the subsidiaries. We, being the consol auditors don't allow some of the transactions which the small firms are either not able to identify or agree to the managements demand.
Professional competency cannot be uniform for all the CAs. Although this revision of 600 is the need of an hour to increase the quality of audit . However they can mandate the appointment of local firms in the jurisdiction of subsidiary to be appointed as auditor of such components as they will have the more accurate knowledge of the local laws and regulations. In this way it can curbe the negative impact on small firms. And their work would be subject to audit by principal auditor l so the audit quality will remain intact. It's my opinion , can be right or wrong.
I don't think the Big 4 would like to use their time on checking the work on another audit firm. If the proposed changes are made, the big firms would surely want their own firm to be the auditor for subsidiaries as well as they wouldn't want to be responsible for another firm's work.
NFRA rules will increase the quality of audit in subsidiary company, generally small audit companies do not have appropriate and sufficient auditing resources. This will lead to increase the demand of CAs in big auditing companies.
Look, purpose of Audit is to increase the confidence of stakeholders in FS. As a result of this accounting frauds in recent time, confidence or trust on profession is at stake. We should try to increase the audit quality, cause it is of prime importance. Talking about competence, it is a subjective characteristic, human resource, capabilities, IT infra and other are different for all firms, hence all firms are not equally competent.
4:20 I say component auditor's report should be thoroughly reviewed and proceed reperformed with a view for getting a limited assurance about absence any kind of audit risk
Qualification may be same , but this does not necessarily apply that each member or chartered accountant carries same level of competence. Competence is directly related to experience , so stating that each member is equally competent for particular task is wrong , or may be highly equivocal.
I agree that not every auditor would be equally competent but how will a person who has qualified the icai exams judge another person who has also qualified the same exams? Revision to SA 600 is required but it seems like ICAI is trying to stand up for smaller firms which is also good?
NFRA is saying it is applicable to only 1.5% of 1.74M active companies, when how many of those applicable companies are having holding in those 1.74M active companies. the affected companies will be huge. usually public interest companies have multiple subsidiaries.
I think just ask for documentation done small firm of the audit conducted by them Small firms usually doesn't have any workings and papers no evidence collection This will clear the amendment correct or not
As we all know that obtaining evidences during the audit doesn't bring risk down to zero There will always be an item financial statement of company or any non- financial item that will contain a misstatement which will not be detected by the AP of auditor and that doesn't make a qualified CA not to be a competent What are the odds that if Comprehensive audit has been done by the Holding Auditor will result to zero misstatement in FS Every Qualified accountant is accountable for excercising due diligence and other duties as per professional ethics and ICAI is very active nowadays to reprimand any CA firm for the same
I think mujhe nhi lgta iss prastav m koi khrabhi h NFRA k... ICAI ko group Auditor ki minimum fees Company k Turnover ki 30% rkh deni chaiye koi b CA Firm ase assignment ko lene k liye taiyar rhegi....
seedha threat to independence hai bhai; mai as auditor aise kyu apni auditee company ki t/o kamm karunga jisse meri fees par bhi impact pade. Fees of audit is a much deeper issue which needs to be more researched by our institute to be in line with other country’s audit fees
0:01 @neeraj arora i joined your workshop today... everything you were teaching there was some common things and it's on almost every channel on RUclips. I really expected something new from you. For me the workshop wasn't really useful. It feels like you didn't tell us kind of secrets that you used for your portfolio.
The one and only world's 2nd largest accounting body a developer of trust and independent profession with world class competencies 😂😂😂
🤣🤣🤣🤣🤣
ICAI should consider the fact that "Qualified" ≠ "Competent"
true
+
Equal opportunities are not available.
"Audit Masala" series must not stop ❤
Not all CAs have the same competency but it would be very infeasible to hold the holding company or the group auditor responsible for subsidiary companies because in the time frame, where the FS information remains viable, it's almost impossible to find a collaborative scheme that allows the group auditor to also asses the subsidiary companies to the level and extent required.
0:20 I thought my playback speed is 2x 😂❤
😂😂😂😂😂 Eminem ko picha chodenge sir
sir ji hameshaa 2x ki Speed mai hote😂
If group auditor is held accountable for subs FS then that raises a question on the competence of another auditor. And the irony is that both the professional qualified the same exams. Edit : However, I deny that all CA hold same level of competence just because they cleared same exams. If we see, prime facie, For a larger organisation, a big Audit firm is appointed which is far more competent and have Tremendous resource to carry execute complex tasks which the case not possible with other. So, NFRA’s Stands hold good in this case. Can’t Compare a Deloitte with Jamnalal Prasad Daya Shankar & associates. Also, I believe this amendment in SA will kick out all the major Audit firm (Especially Big 4) out of Market, Not sure but something shady is going on.
I agree that smaller firms may get sidelined by bigger firms.. But Smaller firms will try to survive by taking up more skilled And competent CA.. So overall it is responsibility on our end to Be more Competent And Meet the eligibility criteria ❤
This was such an informative and interesting video. I don't know much about these things right now as I am just a CA Finalist, but I think NFRA is right here. No risks should be taken in the case of publicly listed companies. Also, Holding Co. and Subsidiary Co. having the same auditors would make the Audit more efficient too.
Not only firms jobs are also at risk. CAs are not getting jobs even this time they are struggling to get jobs in banks offshore firms and IT companies. And our council is busy in elections.
Well explained.
NFRA should discuss with ICAI for other ways to tackle these issues. The proposed change will definately going to have a big adverse impact on small CA firms. Although there are some pros also, but cons are comparetively high. All stakeholders's POV should be considered.
I beleive this is going to just benefit the ecosystem. Provided a clear procedure is provided for the Holding Company auditor to audit the books of Subsidiary.
Not all CAs are competent at every task, especially where CAs are required to have expertise in the particular field. The Journey to become CA is uniform and hence all are Qualified after passing the final examination. What is not uniform is the Article ship phase of a student. The article-ship is what makes us competent to perform work as a fresh CA. There is a Goal to complete the article-ship phase for a student which is long term ( 2 years now) This goal should be complimented with short term objectives that has to achieved in the whole article-ship period. task should be performed related to all areas of audit accounting and finance during this phase, mandatorily that would conclude his/her article-ship. That would create more competence among the CAs.
Neeraj sir please throw some light on it I would be obliged to get your views on this.
(Concept of SM- long term and short term objectives have been implemented here)
4:12 of course yes,
the contention of NFRA is somewhat correct as it will reduce class conflicts . whenever there is any discrepancy in the books or any issue rises instead of taking the accountability head office auditor and branch auditor starts blaming each other .
even in case of any fraud it become difficult for the authorities to assign the accountability
I work with a Big 4 firm in the statutory audit department and the sad reality is that the client actually takes advantage of the small audit firms auditing the subsidiaries. We, being the consol auditors don't allow some of the transactions which the small firms are either not able to identify or agree to the managements demand.
Professional competency cannot be uniform for all the CAs.
Although this revision of 600 is the need of an hour to increase the quality of audit .
However they can mandate the appointment of local firms in the jurisdiction of subsidiary to be appointed as auditor of such components as they will have the more accurate knowledge of the local laws and regulations.
In this way it can curbe the negative impact on small firms. And their work would be subject to audit by principal auditor l so the audit quality will remain intact.
It's my opinion , can be right or wrong.
I don't think the Big 4 would like to use their time on checking the work on another audit firm. If the proposed changes are made, the big firms would surely want their own firm to be the auditor for subsidiaries as well as they wouldn't want to be responsible for another firm's work.
NFRA rules will increase the quality of audit in subsidiary company, generally small audit companies do not have appropriate and sufficient auditing resources. This will lead to increase the demand of CAs in big auditing companies.
Great explanation sir ❤ mza agya pura sunke with examples 🔥
Look, purpose of Audit is to increase the confidence of stakeholders in FS. As a result of this accounting frauds in recent time, confidence or trust on profession is at stake.
We should try to increase the audit quality, cause it is of prime importance.
Talking about competence, it is a subjective characteristic, human resource, capabilities, IT infra and other are different for all firms, hence all firms are not equally competent.
4:20 I say component auditor's report should be thoroughly reviewed and proceed reperformed with a view for getting a limited assurance about absence any kind of audit risk
Sir if they are saying ki it is like questioning the competency of the fellow members then peer review kyu ho rhe hai..
Competences are never be equal
Thanks a lot for such important information sir😊
It's high time for small CA firms to understand the importance of quality of audit.
Qualification may be same , but this does not necessarily apply that each member or chartered accountant carries same level of competence. Competence is directly related to experience , so stating that each member is equally competent for particular task is wrong , or may be highly equivocal.
sir competance cannot be compared...qualification is not equal competance
best type of content after exams are over
Why is neeraj sir not a member? Kya story hai peeche!
An qualified CA will not get COP in case he is doing an full time employment
Sir aap member kyu nahi ho ?
I agree that not every auditor would be equally competent but how will a person who has qualified the icai exams judge another person who has also qualified the same exams?
Revision to SA 600 is required but it seems like ICAI is trying to stand up for smaller firms which is also good?
NFRA is saying it is applicable to only 1.5% of 1.74M active companies, when how many of those applicable companies are having holding in those 1.74M active companies. the affected companies will be huge.
usually public interest companies have multiple subsidiaries.
Parent auditor ko liable banao toh subsidiary audit ki bhi fees parent ko do kaam karao 200% aur fees ki baat pe 10 rs.😂
I think just ask for documentation done small firm of the audit conducted by them
Small firms usually doesn't have any workings and papers no evidence collection
This will clear the amendment correct or not
# NO DISCRIMINATION....EQUAL RIGHT TO EVERY CA...
Neeraj sir is using ai to create ppt
ICAI and NFRA should come to one common solution by there communication
As we all know that obtaining evidences during the audit doesn't bring risk down to zero
There will always be an item financial statement of company or any non- financial item that will contain a misstatement which will not be detected by the AP of auditor and that doesn't make a qualified CA not to be a competent
What are the odds that if Comprehensive audit has been done by the Holding Auditor will result to zero misstatement in FS
Every Qualified accountant is accountable for excercising due diligence and other duties as per professional ethics and ICAI is very active nowadays to reprimand any CA firm for the same
I think abb CA student big size ca firm mai he kam Krna prefer karenge
I think mujhe nhi lgta iss prastav m koi khrabhi h NFRA k... ICAI ko group Auditor ki minimum fees Company k Turnover ki 30% rkh deni chaiye koi b CA Firm ase assignment ko lene k liye taiyar rhegi....
😂😂😂😂....
seedha threat to independence hai bhai; mai as auditor aise kyu apni auditee company ki t/o kamm karunga jisse meri fees par bhi impact pade. Fees of audit is a much deeper issue which needs to be more researched by our institute to be in line with other country’s audit fees
Speaking in Hindi or English is ur choice, latest provide English subtitles so that my will get benefits from ur videos , Thanks...
Sir "Mai member nahi hu"
New audience 🙄
those who know the sacrifice 🗿
Saara kaam big4 lejayenge... Or saare CA bs employee bnke rehjayenge...
4:12 absolutely no🥲
Meanwhile some fighting for signature power😅
no All the CA are not Competent
Nafra ka nakhra kabhi kam nhi hoga
0:01 @neeraj arora i joined your workshop today... everything you were teaching there was some common things and it's on almost every channel on RUclips. I really expected something new from you. For me the workshop wasn't really useful. It feels like you didn't tell us kind of secrets that you used for your portfolio.
@@shankysingh9116 there are no secrets i followed the same principles and built wealth.
Kyaa bhai CA ka bhi abhi job jaa Raha hai, yee kesa samay aa geya hain......!!🤦🏻
Maturity is when u realise NFRA is right
Exam ke time aise video mat dalo
Ca final Clear kiya hai par CA nahi hu ye kya baat huii😂😂
Not a member of ICAI.
@@NeerajArora Does that mean not paying Membership fees?
@@NeerajArora Does that mean not paying Membership fees?
Neeraj sir surrendered his CA degree to ICAI
@@pravinasampelli3177 Why? 😳
I m from big 4 and let me tell u the future of small and mediocker firm from audit point of view is not very bright