Assess how responsibility of auditors could be ensured to avoid breach of professional standards to apply statutory requirements. How can he verify third-party fund utilization reports ?

In case a Company undertakes CSR activity itself, the auditor of the company should ensure that: The activity/project undertaken is within the purview of Schedule VII of the Act. If mere contribution/donation is given, then the same is specifically allowed as per Schedule VII of the Act. Separate disclosure of expenditure on CSR activities is made as per Schedule III of the Act. The expenditure on the project is incurred as per Companies (CSR Policy) Rules 2014. The company has complied with applicable Accounting Standards in accounting, recognition and disclosure related to CSR spend. He has complied with relevant Standards on Auditing for audit of CSR spend including: SA 250 - Consideration of Laws and Regulations in an Audit of Financial Statements. SA 720 (Revised) - The Auditor's Responsibilities Relating to Other Information. He has complied with the Guidance Note on Audit of Expenses. Wherever a Company undertakes CSR activity through a Third Party being eligible Section 8 Company/ Registered Trust / Registered Society, the company should obtain an Independent Practitioner's Report on utilisation of such CSR Funds from the auditor / CA in practice of the third party, to whom the funds are given by the Company for implementing CSR activity. The auditor / CA in practice of the third party before issuing the Independent Practitioner's Report on Utilization of CSR Funds should ensure that the third party has spent the funds on CSR activities as per Section 135 of the Companies Act, 2013, read with Schedule VII to the Act and related regulations.