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Question ID : 38150

REGARDING PROVISIONAL BALANCE SHEET

1. Can a Chartered Accountant Sign a Provisional Balance Sheet? 2. If yes, Is UDIN to be generated for the same? 3. If not, what is documentary proof to be given to client to satisfy his needs. My client needs Provisional Balance Sheet as on March 31,2019 in order to apply for one of the tenders. 4. Please Advise as early as possible because tender is time bound.

Posted by Ravinder Agrawal on May 18, 2019

Filed Under AUDIT

Answer ID : 76585

A CA IN PRACTICE CAN NOT SIGN PROVISIONAL BALANCE SHEET, IT IS AGAINST THE CODE OF CONDUCT OF ICAI, HE CAN ONLY PREPARE PROVISIONAL BALANCE SHEET WITH HELP OF CLIENT, AND SAY TO HIS CLIENT THAT HE CAN SELF ATTEST HIS PROVISIONAL BALANCE SHEET,

Posted by SHUBHAM JAIN on May 18, 2019
Answer ID : 76586

No. As per Chartered Accountants Act, Schedule 2 para 1 clause (3) CA shall be guilty if he signs estimated figures. It should be signed only by client himself.

Posted by CA. chunauti dholakia on May 18, 2019
Answer ID : 76588

First of all , be aware that there is a difference between Provisional balance sheet and Projected balance sheet. . Provisional financial statements are based on the historical data. however they are unaudited.A CA , on the basis of facts produced before him ,may sign those unaudited Provisional financials but request must come from the client in this regard. As far as prospective financials are concerned, these are prepared on the assumption of events that may occur in future. Since, assumption itself are futuristic. Hence, CA shall be deemed to be guilty of professional misconduct if he certifies prospective financials without complying with principles of SAE 3400.

Posted by CA. BISHT RAKESH on May 19, 2019
Answer ID : 76591

IT is not mandatory to quote UDIN while signing balance sheet whether it is audited or provisional. UDIN is required to submitted only in case of certificates and W.e.f 01.04.2019 GST and tax audit report. Hence there is no need to generate UDIN in case of provisional balance sheet. But in case if your give any certificate like turnover or net worth certificate then you are supposed to generate UDIN

Posted by ganesh on May 20, 2019
Answer ID : 76592

1) Chartered Accountant can not give any opinion of figure which are futuristic , however with reference to SAE 3400 CA can examine the prospective financial statement only after giving the details of assumptions and basis of origin of that data. (Read SAE 3400) 2). No UDIN as there is no certification or any opinion 3). Only can examine the prospective financial statement with reference to SAE 3400

Posted by HARJEET on May 20, 2019
Answer ID : 76614

he can give report on compilation of unaudited financial statements making it clear that he has not carried out an audit, but only complied the statements and he is not expressing any opinion and not taking any responsibility for the same. no udin required

Posted by CA. VENKITARAMAN K V on May 21, 2019
Answer ID : 76667

No UDIN required. he can sign provisional limiting his liability clearly.

Posted by SIVADAS CHETTOOR on May 29, 2019