Question ID : 40651

UDIN for provisional balance sheet

Dear Expert, Do we need to generate UDIN for provisional balance sheet signed with below disclaimer - Disclaimer - The preparation and presentation of the Provisional financial statement is the responsibility of the management. Financial statement have been compiled for the limited purpose on the specific request and on the basis of documents and information furnished by the management without any risk and responsibility on our part in any respect of whatsoever nature. . The provisional financials statement is unaudited and hence no opinion is expressed on the same. I understand, as per ICAI FAQ on UDIN, it is stated that, it is required for provisional balance sheet prepared/compiled. but as per my understanding, UDIN is necessary if we are certifying/attesting/or expressing our opinion on something. kindly advise. Also confirm if a CA can sign the provisional financial with such note.

Answer ID : 80526

The issue is covered under SRS 4410, for which UDIN is required.

Answer ID : 80527

Yes, a CA can sign provisional balance sheet and it would not violate Clause (3) of Part I of Second Schedule to The Chartered Accountants Act, 1949, which states that a “CA would deemed to be guilty if he permits his name or the name of his firm to be used in connection with an estimate of earnings contingent upon future transactions in a manner which may lead to the belief that he vouches for the accuracy of the forecast” , if he/she clearly indicate that the data is unaudited and not reviewed and he is just engaged for the compilation of the provisional balance sheet. “Compiled by us on the basis of information provided to us not being audited or reviewed” UDIN is requird to be genearted.

Answer ID : 80528

Thank You for your reply. However as per one of the expert CA, one can not sign the provisional balance sheet simply stating "compile from the books of account". CA has to follow SRS 4410 and issue a report, generate UDIN as per said standard. considering practical difficulty and time constraint, many a time it would not be possible to issue a report. Then in a such a situation, what approach should be followed.

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