Audit of items of financial statement

Ultimate beneficiary is the end beneficiary of the source transaction. A financial intermediary refers to an institution that acts as a middleman between two parties in order to facilitate a financial transaction.

Sudha Reddy

CA Final

★ 20K+

20-Apr-22 10:09

Amendments in Audit Report Rules and Accounts Rules require the following new disclosures regarding camouflaged lending or investment, that is, where out-bound or inbound loans, advances and investments are intended to be routed through an entity (who works as a channel/ conduit), masking the identity of the ultimate beneficiary. These transactions are undertaken by a company for some identified beneficiary. They do not take place between the company and the ultimate beneficiary directly, but is masked by the inclusion of an intermediary acting as a conduit entity (an entity acting on the instructions of the company for channelizing the funds to any other entity identified by the company).

Sudha Reddy

CA Final

★ 20K+

20-Apr-22 10:15