While auditing the financial statements of Bro Traders LLP, CA L is carefully going through LLP agreement. Briefly discuss the key points CA L…

(a) The auditor, CA L should read the LLP agreement & note the following provisions: - (a) Nature of the business of the LLP. (b) Amount of capital contributed by each partner. (c) Interest – in respect of additional capital contributed. (d) Duration of partnership. (e) Drawings allowed to the partners. (f) Salaries, commission etc. payable to partners. (g) Borrowing powers of the LLP. (h) Rights & duties of partners. (i) Method of settlement of accounts between partners at the time of admission, retirement, admission etc. (j) Any loans advanced by the partners. (k) Profit sharing ratio Reporting Responsibilities of CA L/ concerning the financial statements of Bro Traders LLP is as follows: The auditor should mention (a) Whether the records of the firm appear to be correct & reliable. (b) Whether he was able to obtain all information & explanation necessary for his work. (c) Whether any restriction was imposed upon him.