ICAI rebukes auditor over revaluation reserve in cash flow statement
In short
ICAI has taken action against a bank’s auditor over how a revaluation reserve was shown in the cash flow statement. The reporting says it was put under investing activities even though it is a non-cash item, and that this did not comply with AS-3.
The case matters for audit quality and financial reporting, but the report does not name the bank or say what further penalty, if any, was imposed.
What the reporting says
ICAI reprimanded a bank’s auditor over the inclusion of revaluation reserve in the cash flow statement under investing activities, according to the available reporting. The cited issue is that revaluation reserve is a non-cash item and was said to be non-compliant with AS-3. The report does not state the bank, the auditor’s name, or the exact disciplinary outcome beyond the reprimand.
Why it matters
ICAI reprimanded a bank’s auditor after the revaluation reserve was included in the cash flow statement under investing activities. The source says this was a non-cash item and therefore not compliant with AS-3. The reporting does not identify the bank or auditor, and it does not say whether any wider regulatory action followed the reprimand.