Rights & Powers of Auditors

1. Access to books, accounts & vouchers 2. To obtain information & explanations 3. To visit branch offices & right of access to books etc. 4. To receive notice of general meeting & to attend. 5. To receive information

Duties of Auditors
1. Acquaintance with the articles & the companys act. 2. Report to members 3. Further duties 1. Statutory report 2. Prospectus 3. Assistance in investigation 4. Following accounting standards

Auditors Report
- Obligations to make an inquiry 1. Loans & advances made by the company 2. Transactions of the company 3. Personal expenses charged to revenue account 4. Receipt of cash for shares allotted - Matters to be stated in auditors report 1. Obtained all information & explanations 2. Proper books of account have been kept by company reports from branches received 3. Auditors report of branch office, not audited by him 4. Accounts render true and fair view of the state of affairs of the company 5. Balance Sheet and Profit & Loss A/c are in agreement with the books of account 6. Compliance of Accounting Standard

Disqualifications of an Auditor
A body corporate An officer or employee of the company Partner / employee of an officer or employee of the company Indebted to the company for an amount exceeding Rs. 1000/- or guarantor 5. Disqualified for appointment as auditor of any body corporate which is i) The companys subsidiary; or ii) Its holding company; or iii) A subsidiary of its holding company 6. A person holding any security carrying voting rights of that co. after a period of one year from the date of commencement of companys amendment act 2000 1. 2. 3. 4.

Books of Account
- Receipts

& payment - Sales & purchases - Assets & liabilities - Utilisation of material, labour or other items of cost - Summarised account of all branch offices - in or outside India

Location of books
Preservation

of books Inspection of books

Statutory Books
1. 2. 3. 4. 5. 6. 7. 8. 9. Register or investments not held in companys name Register of charges Register of members Index of members Register of debentures holders Index of debenture holders Foreign register of members & debenture holders Minute books of general meetings Register of contracts, & companies & firms in which Directors are interested directly 10.Register of Directors, M.D., managers and secretary. 11.Register of Directors share holding 12.Register of loans made, guarantees given or securities provided to companies under the same management 13.Register of investments in shares & debentures of companies in the same group

Boards Report (Sec 217)

a) b) c) d) e) f) The state of the companys affairs The amount proposed as reserves The amount recommended as dividend Material changes affecting the financial position of the company The conservation of energy, technology absorption, foreign exchange earnings & outgo Other changes occurred during the F.Y. like I. In the nature of companys business II. In the companys subsidiaries or in the nature of business carried on by them III. Generally in the class of business in which the company has an interest! IV. A statement showing the names of employees getting remuneration which is prescribed. Also indicate whether such employee is a relative of any Director or manager of the company V. Fullest information & explanations on every reservation, qualification or adverse remark contained in the auditors report. Reasons for the failure, if any, of complete buyback within the time specified.

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