What is duty of an auditor?
The fundamental duty of a company’s auditor is to make a report regarding accounts and financial statements examined by him and present the same to the members of the company. Such an opinion of the auditor enhances the credibility of the financial statements.
What are the rights of the external auditor?
Rights of the external auditor The right of access to all accounting books and records at all times. The right to all information and explanations (from management) necessary for the proper conduct of the audit.
Do auditors have power?
The auditor has a right to access, at all times the books of accounts & vouchers of the company, whether kept at head office or elsewhere. It is an absolute right & is not subject to any restriction, exception or qualification. The term book includes all types of books such as financial statutory or statistical books.
Which one of the followings is the duty of auditor under Section 266 of the Companies Act 2016?
The powers and duties of an auditor are clearly defined under Section 266 of the Companies Act, 2016. Here, the law states that an auditor has a statutory duty to report to members with regards to the financial statements, company’s accounting and other records related to those financial statements.
What auditors should not do?
First and foremost, auditors do not take responsibility for the financial statements on which they form an opinion. The responsibility for financial statement presentation lies squarely in the hands of the company being audited.
How can a company remove an auditor?
Pass the board resolution for the removal of the auditor before his term expires at the board of directors meeting. Then give permission to the company’s CS, CFO, or any other director to file an application with Form ADT-2 before the Central Government (powers delegated to the regional director).
Can auditors attend general meeting?
All notices of, and other communications relating to, any general meeting shall be forwarded to the auditor of the company, and the auditor shall, unless otherwise exempted by the company, attend either by himself or through his authorised representative, who shall also be qualified to be an auditor, any general …
How many years an auditor can audit a company?
five consecutive Years
GENERAL MEETING of companies shall appoint or reappoint an individual auditor-One term of 5 consecutive years. An audit firm- two terms of five consecutive Years each.
Can a company have 2 auditors?
Commercial banks and urban commercial banks (UCBs) will have to rope in at least two auditors unaffiliated with each other and have to take prior approval of the Reserve Bank of India (RBI) for appointment or reappointment of statutory auditors on an annual basis, the central bank said on Tuesday.
What is the use of Form 44?
FORM 44. Notice Of Situation Of Registered Office And Of Office Hours And Particulars Of Changes. (COMPANIES REGULATIONS, 1966 – P.U.
What is the Form 49?
FORM 49. Return Giving Particulars In Register Of Directors, Managers And Secretaries And Changes Of Particulars. (COMPANIES REGULATIONS, 1966 – P.U.
Can directors remove an auditor?
The members of a company may remove an auditor from office at any time during his or her term of office or decide not to re-appoint him or her for a further term. They must give the company 28 days’ notice of their intention to put a resolution to remove the auditor, or to appoint somebody else, to a general meeting.
Who can dismiss the company auditor?
The auditor appointed under section 139 may be dismissed from his office before the expiration of his term only by a special resolution of the company, after receiving the prior consent of the Central Government in the required way, according to sub-section (1) of Section 140.
Who can remove the company auditor?
As per sub-section (1) of section 140, the auditor appointed under section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government in that behalf.
Who can call a general meeting?
The board of directors has the power to call general meetings and the majority of general meetings will be called by the directors (S302 of the Companies Act 2006). The members also have the ability to demand a general meeting.