NOTIFICATION- Implementation Guide on Reporting under Companies (Audit and Auditors) Rules, 2014

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The Ministry of Corporate Affairs (MCA) vide notification dated March 24, 2021 issued the Companies (Audit and Auditors) Amendment Rules, 2021. Pursuant to this notification, several changes have been made in Rule 11 of the Companies (Audit and Auditors) Rules, 2014.

Changes made- These changes include new Rule 11(e) which deals with reporting on lending or receiving funds through pass through entities marked for ultimate beneficiary and new Rule 11(f) which deals with reporting on the payment/declaration of dividend. These new reporting requirements are applicable for audits of financial year 2021-22 and onwards.


The Auditing and Assurance Standards Board (AASB) of ICAI has developed an Implementation Guide for providing appropriate guidance to the members on these new reporting requirements. The Implementation Guide contains detailed guidance on various aspects of reporting under Rule 11(e) like analysis of Rules, management’s responsibilities in respect of disclosures in financial statements under Schedule III to the Companies Act, 2013, various audit procedures to be performed, reporting considerations, illustrative formats of confirmation letters, illustrative formats of management representations.

The Implementation Guide also contains detailed guidance on various aspects of reporting under Rule 11(f) like relevant requirements under the Companies Act, 2013 and Rules thereunder, audit considerations, reporting requirements, audit procedures and illustrative reporting.

Download implementation guide ( here.

The Implementation Guide will enable auditors of companies to comply with the reporting requirements under these Rules effectively.

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