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    Audit of Limited Companies - Company Auditor

    Uploaded by

    Ashiqul Haque
    An auditor of a limited company must be a chartered accountant as per the Chartered Accountants Act. A person with a restricted auditor's certificate can also qualify. The Companies Act lays out qualifications and disqualifications for auditors. Auditors can be appointed as first auditors, subsequent auditors, for government companies, by special resolution, or to fill casual vacancies. An auditor's remuneration is determined by who appointed them. Auditors have rights like access to books and attendance at meetings, and duties like making reports and assisting investigators.

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    © All Rights Reserved
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    Audit of Limited Companies - Company Auditor

    Uploaded by

    Ashiqul Haque
    32 views8 pages
    An auditor of a limited company must be a chartered accountant as per the Chartered Accountants Act. A person with a restricted auditor's certificate can also qualify. The Companies Act lays out qualifications and disqualifications for auditors. Auditors can be appointed as first auditors, subsequent auditors, for government companies, by special resolution, or to fill casual vacancies. An auditor's remuneration is determined by who appointed them. Auditors have rights like access to books and attendance at meetings, and duties like making reports and assisting investigators.

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    Audit-02-Audit-of-Limited-Companies-Company-Auditor

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    An auditor of a limited company must be a chartered accountant as per the Chartered Accountants Act. A person with a restricted auditor's certificate can also qualify. The Companies Act lays out qualifications and disqualifications for auditors. Auditors can be appointed as first auditors, subsequent auditors, for government companies, by special resolution, or to fill casual vacancies. An auditor's remuneration is determined by who appointed them. Auditors have rights like access to books and attendance at meetings, and duties like making reports and assisting investigators.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views8 pages

    Audit of Limited Companies - Company Auditor

    Uploaded by

    Ashiqul Haque
    An auditor of a limited company must be a chartered accountant as per the Chartered Accountants Act. A person with a restricted auditor's certificate can also qualify. The Companies Act lays out qualifications and disqualifications for auditors. Auditors can be appointed as first auditors, subsequent auditors, for government companies, by special resolution, or to fill casual vacancies. An auditor's remuneration is determined by who appointed them. Auditors have rights like access to books and attendance at meetings, and duties like making reports and assisting investigators.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    Audit of Limited Companies

    -Company Auditor
    Qualifications of an Auditor of
    a Limited Company
    A person shall not be qualified for appointment
    as an auditor of a company (public or private)
    unless he is a chartered Accountant within the
    Charted Accountants Act, 1449,Section- 226.
    According to section 226(2), a person who holds a
    certificate under the Restricted Auditors
    Certificate (Part B States) Rules, 1956, is also
    qualified to act as auditor of a company.
    However, the Central Government may by
    notification in the Official Gazette make rules
    providing for the grant, renewal, suspension or
    cancellation of such certificates and may
    prescribe conditions and restrictions for such
    purpose [Section 226 (2) b.]
    Disqualifications
    The Companies act, Section 226 (3), lays
    down that none of the following persons
    are qualified for appointment as
    auditors of a company-
    a) A body corporate;
    b) An officer or employee of the company;
    c) A person who is a partner, or who is in
    the employment of the officer or
    employee of the company;
    d) A person who is indebted to the
    company.
    e) A person holding any security (i.e.,
    voting right) of the company.
    Appointment of Auditors
    1. First Auditor
    2. Subsequent Auditors
    3. Auditors of Government
    Companies
    4. Appointment by Special
    Resolution
    5. Casual Vacancies
    6. Branch Auditor
    Remuneration and Expenses
    of an Auditor
    1. If the auditor has been appointed by the Board of
    Directors, it is the Board which fixes his
    remuneration.
    2. If the auditor has been appointed by the Central
    Government under the circumstances mentioned
    above, the central Government fixes his
    remuneration.
    3. In case, the auditor is appointed by the controller
    and auditor general, the remuneration shall be
    fixed company in general meeting.
    4. If the auditor has been appointed by the
    shareholders at the general meeting, it is the
    company which determines his remuneration
    unless the company in general meeting may
    delegate the power of fixing his remuneration to
    5. The retiring auditor who is automatically
    re-appointed at the annual meeting,
    unless a resolution is passed refixing his
    remuneration, is entitled to get the same
    remuneration as he was getting
    previously.
    6. If an auditor is asked to do any other
    work over and above his normal work of
    audit, e.g., preparing the final accounts or
    income–tax returns, he is entitled to get
    extra remuneration.
    Rights and Powers of an Auditor
    1. Right of access to books of account
    2. Right to call information and explanations
    3. Right to receive notice of and attend
    general meeting
    4. Right to make statement at the general
    meeting
    5. Right to indemnified
    6. Right to visit the branches
    7. Right to take legal and technical advice
    8. Right to remuneration
    9. Right to sign the audit report
    10. Right of lien
    Duties of an Auditor
    1. Duty to make report
    2. Matters to be stated in the report
    3. Duty to assist Investigator
    4. Duty to call for information on
    various points
    5. Duty to certify the Statutory Report
    6. Duty to certify profit and loss
    account in a prospectus

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