Auditing and Assurance revision question and answer

Auditing and Assurance Revision Questions and Answers

Express your view as an auditor in the following case:
The Directors of D Ltd. want to transfer to the Profit and Loss Account a large sum of amount lying in unclaimed dividends account. The dividends were remained unclaimed over the last three years.
Answer
As per Sec 182 (9) of the Companies Act 2063, The amount of dividend not claimed/received any shareholder even after the empery of a period of five years after the date of resolution adopted the company in its general meeting to distribute dividend shall be credited to the investor protection fund to be

established under Section 183 of the Companies Act. Hence the auditor should advise the Board not to transfer the amount to profit and loss account. Alternatively, the Auditor would be required to state this qualification in his report



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