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Latest FAQ On UDIN for Practicing Chartered Accountants – Part 4 (Other Audit & Assurance Functions, Helpdesk)

Other Audit & Assurance Functions

1. UDIN is mandatory on which types of Reports & Document with effect from 1st July, 2019?As per the decision of the Council taken at its 379th Meeting, UDIN has been made mandatory in following phases:

  • For all Certificates w.e.f. 1st February, 2019.
  • For all GST and Tax Audit Reports w.e.f. 1st April, 2019.
  • For all other Audit, Assurance & Attest functions w.e.f. 1st July, 2019.

Henceforth from 1st July, 2019 onwards UDIN is mandatory on all Audit, Assurance and Attestation functions rendered by full-time Practicing Chartered Accountants. 

2. What is meant by Audit, Assurance and other Attestation Services?

It includes engagement as per Standards on Auditing (SAs), Review Engagements as per Standards on Review Engagements (SREs), Other Assurance Services as per Standards on Assurance Engagements (SAEs) /Guidance Note on Reports or Certificates for Special Purposes and other Engagements as per Standards on Related Services (SRSs) and any Assurance services rendered by Full Time Practising Chartered Accountants.

To know more about details of these engagements, please visit at link https://www.icai.org/new_post.html?post_id=450

3. What is the process to generate UDIN for all Audit, Assurance and Attestation Function?

For generating UDIN, the “Document type” is to be selected as “Audit & Assurance Functions”. Thereafter, “Type of Audit” is to be selected from the dropdown list based on the assignment. The Act/ Statute/ Law under which the assignment is being carried is to be selected from the dropdown list under the caption “Under Act / Law / Statute / Regulation”.

In case the assignment is not included in the dropdown lists of “Type of Audit”, “Any other Audit not covered above” can be selected and details regarding Assignment can be mentioned under Document Description. 

In case the law/Act is not included in the dropdown lists of “Under Act / Law / Statute / Regulation”, “Other Act / Regulation /Law / Statute not covered above” can be selected and details regarding Law can be mentioned under Document Description. 

Once the date of signing the document is mentioned, the key fields are to be filled for generating UDIN.

After this there is one more mandatory field as Document Description wherein text between 15 to 50 Characters from some portion of the report has to be mandatorily filled.

4. What is meant by Financial Year/ Period of Audit?

In this field, the period for which the engagement is accepted is to be mentioned.

5. What is to be mentioned under Shareholder Fund/Owner’s Fund?

Under the Keyword “Shareholders Fund/ Owner’s Fund” figures appearing under Owner Funds / Shareholding / Capital Investment / Equity Share / Equity Interests / Share Ownership / Capital Account / Partners’ Capital /Capital Providers / Stockholder / Venture Capitalists /Own Capital / Endowment Fund/ Corpus Fund /General Fund etc. inclusive of Reserve and Surplus is to be mentioned irrespective of the term used in the Financial Statement.

Members are advised to mention the figure against this keyword as applicable under the respective Statutes while generating UDIN.

6. What is to be mentioned under Gross Turnover/Gross Receipts?

Under the Keyword “Gross Turnover/Gross Receipts”, figure appearing under Gross Turnover/Gross Income/ Gross Proceeds/ Gross Earnings/ Gross Receipts/ Gross Sales/  Gross Revenue etc. is to be mentioned irrespective of the term used in the Financial Statements.

7. What is included in Net Block of Property, Plant & Equipment (PPE)?

Under the Keyword “Net Block of Property, Plant & Equipment”, figure appearing under Total of Net Block of Fixed Asset that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and are expected to be used during more than a period of twelve months such as machinery, equipment, vehicles, buildings, land, office space, office equipment, and furnishings etc. after depreciation is to be mentioned irrespective of the term used in the Financial Statements.

Members are advised to mention the figure against this keyword as applicable under the respective Statutes while generating UDIN.

8. What is meant by Major Comment / Observation (Adverse/Favourable)?

In this field, the major observation made by the auditor either Adverse or Favourable is to be mentioned. Corresponding Financial Implication either negative or positive is also to be mentioned. In case of no Financial Implication, please mention Nil/Zero.

9. What is included in Cash and Cash equivalents?

Under the Keyword Cash and Cash equivalents (CCE) the most liquid current assets found on a business’s balance sheet, all Cash equivalents i.e short-term commitments “with temporarily idle cash and easily convertible into a known cash amount is to be included. Any investment which has a short maturity period i.e 90 days or less is to be included.

Members are advised to mention the figure against this keyword as applicable under the respective Statutes while generating UDIN.

10. What is meant by Type & Units of Fuel Consumed in Energy Audit?

In this field, the name of any major type of Fuel (energy) used such as water, electricity energy, steam etc. is to be mentioned. Its consumption in Units is to be mentioned.

11. What is meant by Method used for Valuation in Valuation Reports?

In this field, the Valuation Method such as Comparable Companies Multiple (CCM) Method, Comparable Transaction Multiple (CTM) Method, Discounted Cash Flow (DCF) Method, etc is to be mentioned.

12. Is it mandatory to mention UDIN on Financial Statements in addition to Audit Reports?

No, UDIN has to be mentioned on Audit Reports.

13. Whether UDIN is required for Management Services?

From 1st July, 2019 onwards, since UDIN is mandatory on all sorts of Audit, Assurance, Attest and Review services as mentioned at Question no. 2, UDIN is required for all Management Services.

14. Whether single UDIN is required for one assignment which is to be conducted over a period?

One UDIN per assignment signature affixed at a time is required. In other words, in case where reports / certificates/ documents of an assignment are signed and submitted periodically or at different point of time such as Concurrent Audits/ Limited Review / Quarterly Review Reports etc. separate UDINs are to be generated.

In case of NBFC Audit also separate UDIN is required for Audit Report and Certificates issued from time to time during the year even if accepted as one assignment.

15. Whether separate UDIN would be required by Joint Auditor in case of Joint Audits?

In case of joints audits, all the signing Auditors have to obtain UDIN separately and mention their UDINs individually on the reports signed by them. Auditors may use the same or different keywords/figures while generating such UDINs.

16. In case I am a partner in multiple firms, which FRN I should mention while generating UDIN?

The FRN of the Firm on behalf of which the member is signing the Report has to be mentioned. In case there is no FRN as Member is signing in his / her individual capacity, “Not Applicable/NA” to be mentioned against FRN.

17. Whether UDIN is also mandatory for Corporate/ Non- Corporate Audit, Attest and Assurance Functions that are filed online using Digital Signature?

UDIN is applicable both for manually as well as digitally signed Reports/ Certificates/ Documents which are uploaded online like MCA Forms, Form 15 CB etc. In case of no field for mentioning UDIN on digitally signed online reports, UDIN has to be generated and retained for providing the same on being asked by the stakeholders.

18. What will happen if I forgot to generate UDIN which are made mandatory by ICAI?

UDIN can be generated till 15 days of signing the document (Provided the Stakeholders accepts the same) except in cases where UDIN has to be mentioned while signing Audit Reports. Further, it may be noted that UDIN generation is being made mandatory as per the Council Decision hence not generating UDIN will amount to non-adherence of the Council Decision and may attract disciplinary proceedings as per clause (1) of Part II of Second Schedule of The Chartered Accountants Act, 1949.

19. Do I need to take separate UDIN for Statutory Audit of Financial Statements and Tax Audit?

Yes, separate UDINs are required for audit of Financial Statements and Tax Audit because both are separate assignments and True and Fair view is given for Financial Statements and true and Correct view is given for Tax Audit assignment.

20. Whether UDIN is required on Reports given by Registered Valuer /Insolvency Professional?

Yes, UDIN is required for practising CAs registered as Valuer / Insolvency Professional on their Reports.

21. Is UDIN required for Non Objection Certificate (NOC) given by previous Auditor?

UDIN is not required on NOC from previous Auditor.

22. Is UDIN required on Peer Review Report?

UDIN is not required on Peer Review Report.

23. Is UDIN required by in case of Audit/Limited Review Reports from a Component Auditor to Principal Auditor?

Yes, UDIN is required to be generated by Component Auditor also.

24. Is UDIN required in case of Consolidation of Financial Statements?

Yes, UDIN is required for consolidation of Financial Statements. However separate UDINs are required for standalone and Consolidated Financial Statements.

25. Whether UDIN is required on Prospective Financial Statements / Information?

As per clause (3) of part-I of Second Schedule to the Chartered Accountants Act, 1949, a member in practice will be deemed to be guilty of professional misconduct if he engages in estimation of earnings contingent upon future transaction in a manner which may lead to the belief that he vouches for the accuracy of the forecast.

As per opinion of the Council, a Chartered Accountant can participate in the preparation of profit or financial forecasts and can review them, provided he indicates clearly in his report the sources of information, the basis of forecasts and also the major assumptions made in arriving at the forecasts and so long as he does not vouch for the accuracy of the forecasts. The member has to comply with SAE 3400 while drafting the report for such engagements and has to obtain UDIN for the same.

26. Whether UDIN is required on Provisional Financial Statements / Compilation of Information?

Standard on Related Services (SRS) 4410 “Compilation Engagements”   deals with the concept. Provisional Financial Statements /  Compilation of Information may be prepared as per this standard.   The purpose of this Standard is to establish standards on professional responsibilities of an accountant when an engagement to compile financial statements or other financial information is undertaken and the form and content of the report to be issued in connection with such a compilation so that the association of the name of the accountant with such financial statements or financial information is not misconstrued by a user of those statements or information as having been audited by him.

The member has to comply with SRS 4410 while preparing Provisional  Financial Statements / Compilation of Information and has to obtain UDIN for the same.

Help desk of UDIN

1. Where do we contact in case of any query related to UDIN?

Members can submit their query online on the help desk tab on Menu bar available at https://udin.icai.org or can email at udin@icai.in.

Members can alternatively call at 011-30110480. In case of emergency, please speak with Mr. Vishal Agarwal at 9911539260

Author: Niranjan Reddy

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