Sample conditional clauses of audit reports:
1- Failure to obtain and submit confirmations from debtors and creditors – banks, etc
2- Inadequacy of tax reserves
3-Lack of property ownership documents and related problems
4- Inadequacy of other reserves (goods, receivables, etc.)
5- Absence or non-observance of trading rules
6- Failure to correctly calculate or pay the government debt on time
7-Lack of proper cost accounting system
8- Failure to meet the necessary conditions in order to continue the company’s activity
9- Failure to correctly report unabsorbed expenses
10- The subject of suspension of activity and failure to prepare financial statements based on the aforementioned assumption
11-Problems in proper classification of accounts and reporting
12- Non-observance of accounting principles and standards in registering accounts
13- Inadequate reserve for end of service benefits
14-Inadequate property insurance coverage
15 – Legal claims against the company
16- Covered by Article 141 (loss of more than half of the capital due to losses)
17- Failure to comply with Articles 114 and 115 of the Commercial Law regarding managers’ collateral shares
18- Failure to complete the assignments of the previous year’s assemblies. The provisions of Article 142 of the Trade Law
19- Coverage of Article 129 of the Trade Law
20- Absence of the share register or lack of registration of transfers in it (provisions of Article 40 of the Trade Law)
21- Failure to comply with Article 128 of the Commercial Law on advertising the name – specifications and tests of the managing director
22- Non-issuance of shares according to Article 27 of the Trade Law
23- Failure to comply with Articles 311 and 313 of the Commercial Law regarding the issuance of post-dated and non-dated checks
24- Failure to comply with Article 240 of the Commercial Law regarding the distribution of fictitious profits and compliance with the payment of dividends within 8 months from the approval of the Assembly
25- Non-observance of Article 177 of the Trade Law regarding the inclusion of stock subscription notices in 2 widely circulated newspapers
26- Failure to comply with Article 106 of the Commercial Law regarding the registration of the minutes of the annual general meeting and the election of directors
27- Non-observance of Article 103 of the Trade Law regarding the minimum number of shareholders in joint-stock companies of 3 people 28- Non-observance of the provisions of Article 126 of the Trade Law regarding the management of more than one company
29- Failure to comply with the provisions of Article 232 of the Commercial Law regarding compliance with the legal deadline for submitting financial and activity reports to inspectors
30- Failure to comply with the provisions of Articles 89 and 138 of the Commercial Law regarding the invitation and holding of the annual general meeting within the deadline stipulated in the articles of association.
31- Failure to comply with articles of the statute
32- Not having a proper system of internal controls
33- Failure to comply with Article 107 of the Commercial Law on the selection of board members from among shareholders
34 – Failure to comply with Article 109 of the Commercial Law – Expiration of the term of office of the board members
35- Failure to comply with Article 138 of the Direct Taxes Law regarding the expiration of the legal deadline for planning and development
36- Failure to comply with the provisions of Article 169 of the Direct Taxes Law regarding sending purchase and sale reports to the Ministry of Finance
37 – Non-compliance of the company with the conditions accepted in the stock exchange
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Group of accountants, auditors, Tabriz
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ
This post is written by Mahdi_kohsoltani