25 Dec

audit is compulsory under which law

Your company must have an audit if at any time in the financial year it’s been: Don’t include personal or financial information like your National Insurance number or credit card details. We use this information to make the website work as well as possible and improve government services. The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476. An auditor is entitled to his remuneration on the completion of his work. If any additional duty is imposed on them through the Articles of the company, they are obliged to follow them. But, if the annual general meeting is not held within the period prescribed, the office of the auditor fall vacant by the date general meeting sought to have been held. The ICAI has since issued AAS-4 on Fraud and Error embodying the same thought. Statutory Audit is performed by external auditors whereas tax audit is conducted by a practising Chartered Accountant. Section 139(6) lays down that the first auditor or auditors of a company shall be appointed by the Board of directors within thirty days of the date of registration of the Company. The auditor if recognises that any fraud has been commit dust report the same to the central government in public interest. This can be an individual shareholder or a group of shareholders. On the contrary, he is appointed by the company to check the directors and for some purposes and to some extent, it seems to me quite impossible to say that he is not an officer of the company. Your company may qualify for an audit exemption if it has at least 2 of the following: Your company may qualify for an audit exemption if it has both: You must include the following statement on the balance sheet of your accounts if you’re using an audit exemption. Further he is under a duty to give to the inspector all assistance in connection with the investigation which he is reasonably able to give. If the Board agrees with the recommendations of the Audit Committee, it shall further recommend the name proposed to the members to be appointed in the annual general meeting. Private: Although federal law doesn’t require audits for private businesses, banks and other lenders to private businesses may insist on audited financial statements. The disqualifications as aforesaid are largely to ensure the independence of the auditors and for avoiding any conflict of interest while performing his duties as an auditor because of any pecuniary interest in the company whose accounts are being audited.eval(ez_write_tag([[728,90],'lawtimesjournal_in-medrectangle-4','ezslot_3',112,'0','0'])); Where the Chartered Accountant is employed whole-time, he is an employee of the company. There are various kinds of audits being conducted under different laws such as company audit, statutory audit conducted under company law provisions, cost audit, stock audit etc. is having any interest or security in the company or its subsidiary or its holding or its associate company or; is indebted in excess to the company or its subsidiary or its holding or its associate company or; has given a guarantee or security in connection with the indebtedness of any third person to the company, or its subsidiary, or its holding or associate company; Any person or a firm which has a business relationship with the company, or its subsidiary, or its holding or associate company either directly or indirectly; A person whose relative is a director or is employed as a key managerial personnel in the company; A person who is in full time employment elsewhere or a person or a partner of a firm holding appointment as its auditor, if such persons or partner is already an auditor of more than twenty companies on the date of appointment; The status of an auditor has been subject to a number of judicial interpretations. Lindley J, in London and General Bank, held that an auditor, is not bound to do more than exercise reasonable care and skill in making enquiries and investigations. In Spackman v. Evans[xii], Cranworth LJ, held that the auditors may be agents of the shareholders, so far as relates to the audit of the accounts. I strive to better myself every day and work in a dynamic, challenging, work-oriented environment to accomplish my desire to seek more knowledge. 378, [xxxii]Re Bolivie Exploration Syndicate[1913]3 TLR 146. The auditor is responsible for obtaining reasonable assurance that the financial statements taken as a whole, are free from material misstatement, whether caused by fraud or error (ISA 200). An audit, which is required by the statute (law) is known as a Statutory audit. A State or local government that is required by constitution or statute, in effect on January 1, 1987, to undergo its audits less frequently than annually, is permitted to undergo its audits pursuant to this chapter biennially. An auditor of a company possessing the qualifications prescribed in section 141 of the Act is generally known as the statutory auditor of the company as he derives his duties, power and authority from the statute i.e. Whether loans and advances made by the company on the basis of security have been properly secured and whether the terms on which they have been made are prejudicial to the company or its members; whether transactions of the company which are represented merely by book entries are prejudicial to the interests of the company; where the company not being an investment company or a banking company, whether so much of the assets of the company as consist of shares, debentures and other securities has been sold at a lower price that what they were purchased by the company; whether loans and advances made by the company have been shown as deposits; whether personal expenses have been charged to revenue account; An auditor has the right to sign the auditor’s report or sign or certify any other document of the company, All notices and such other communications shared between members regarding the general meeting of a company, shall also be forwarded to the auditor of the company, The auditor has the right to attend any general meeting and be heard, at any general meeting which he attends, on any part of the business which concerns him as auditor. In case of a Government company or a company owned or controlled by the Central Government, State Government or in part, the first auditors shall be appointed by the Comptroller and Auditor-General of India within sixty days from the date of registration of the company. However, this can only be ensured through an independent and autonomous body which is not regulated by the company’s managerial positions. This duty has primarily gained foothold due the judicial interpretations. The role of an auditor has increasing gaining an important stature in the corporate governance. Thus, although an auditor is an agent of the shareholders and according to the law of agency ‘the knowledge of the agent is the knowledge of the principal’, the shareholders are not bound for any information which the auditor might have acquired during the course of audit if he had not communicated it to the shareholders. The status of an auditor has been subject to a number of judicial interpretations. The auditor to the best of his knowledge must perform the task at hand and take due diligence while conducting the same. Statutory audit is mandatory by law to asses the performance of the firm / organization and utilization of public funds. Sometimes, in certain cases, an audit committee has to be constituted under Section 177 of the Act and all appointments of auditors shall be made based upon the recommendation of the Audit Committee.To give effect to the requirements of Section 139(11), the Companies (Audit and Auditors) Rules 2014 lay down the manner and procedure of selection and appointment of auditors. In case of a holding company the auditor also is entitled to access to records of all its subsidiaries and associates insofar it relates to the consolidation of its financial statements with that of its subsidiaries and associates[xviii]. Statutory Audit is the audit of complete accounting records. The auditor is expected to continue in office till the annual general meeting is actually held thus, if adjourned, his tenure will extend till the conclusion of the adjourned meeting. The audit exemption is applicable for financial years beginning on or after the change in the law (1 Jul 2015). In case of a failure by the Board, the members must be informed who shall appoint the first auditor in an extraordinary general meeting within sixty days. Correspondingly a firm of limited liability partnership is appointed as the auditor, only those partners that are chartered accountants are authorized to act and sign on behalf of the firm[xxiv]. Broadly, the auditor has been seen through the lens of an agent and an officer of the company. Some companies must have an audit even if they meet the rules for not having one. He is not a servant of the directors. The auditor of a company has the right to require from the officers of the company such information and explanations as the auditor may think necessary for the performance of his duties as auditor[xix].In addition, the auditor has a right to specifically enquire about the following matters: A ‘branch office[xx]‘ of a company means any establishment or office described by the company as its branch office. I. Apart from this, the Act also prescribes certain mandatory duties within its domain. We use cookies to collect information about how you use GOV.UK. I have completed my schooling from Delhi Public School R.K.Puram and currently in my penultimate year of law school at Hidayatullah National Law University. The new Audit Directive and Regulation have now been published in the Official Journal of the European Union. Thus, Section 141(2) of Companies Act states that if a firm is appointed as an auditor, only those partners who are chartered accountants are authorized to sign on behalf of the firm. The phrase ‘all times’, however, implies only to the normal business hours. Lindley LJ, held that an auditor is an officer of the company as he is appointed by the company and his position is described in the section as that of an officer of the company. Example:- For Companies,Accounts Audited Under Companies Act called Statutory Audit, hence tax audit under Section 44AB not required to be conducted separately The directors of a company which is a parent should establish an audit committee if the balance sheet total and turnover of the company and its subsidiaries taken together, fo… [xxxiii]Leeds Estate Building Investment Co v. Shepherd[1887]36 Ch. The nature of audit required under section 12A(1)(b) is similar to that of audit of general purpose financial statements. Every right available to an individual has a corresponding duty. Audit is compulsory www.thetaxtalk.com- As per Section 2(13) of CGST Act, 2017'audit' means the examination of records and other documents maintained or furnished by the registered person under this Act or rules made thereunder or under any other law for the time being in force to The auditor has the right to attend any general meeting and be heard, at any general meeting which he attends, on any part of the business which concerns him as auditor[xxvi]. He is expected to safeguard their interests. Thus, the first view of the auditor being a agent of the company seems to be compliant with the existing law of the land. The court in Newton v. Birmingham Small Arms Co. held that any provision to the contrary is ultra vires and hence void[xvi]. The report should answer questions on whether, proper books of account as required by law have been kept by the company, whether the balance sheet is drawn according to the reported profits and losses, observations on financial transactions, remarks on maintenance of records etc. However, this is subject to the limitation that where the vacancy has arisen due to resignation, it can be filled only by company in general meeting which is convened within 3 months of recommendations of Board. Tax Audit is an audit made compulsory by the Income Tax Act if the turnover of the assessees reaches the specified limit to asses that correct tax has been paid by the assesee. White Paper on Legal Audit. Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting, Sometimes, in certain cases, an audit committee has to be constituted under, The Audit Committee recommends the name of the auditor to the Board. It is general opinion regarding section 44AD that if turnover is less than 1 crore/ 50 lakhs, and claimed profit is less than 8%/6%, then one has to get its books of account audited. Of course, audits aren’t cheap. Audit required under law This type of audit is also known as statutory audit. To enable this, the accounts of the company must be inspected and reviewed in a timely manner by  an independent individual who is not employed in the company or is in any way indebted or otherwise obliged to the company. However the Chartered Accountants Act, 1949 also permits the chartered accountants to enter into partnership with other professionals. The first auditors can be validly appointed only by a resolution or Board of directors or that of the company in the general meeting. EU audit legislation 5 The definition of a PIE was included in the Statutory Audit Directive (2006). He is not an insurer, he does not guarantee that the books do correctly show the true position of the company’s affairs; he does not guarantee that his balance sheet is accurate according to the books of the company, if he did, he would be responsible for an error on his part, even if he were himself deceived due without any want of reasonable care on his part say, by the fraudulent concealment of a book from him. They are usually appointed by the company and must have a Chartered Accounts Degree. In case of a failure by the Board, the members must be informed who shall appoint the first auditor in an extraordinary general meeting within sixty days.[vi]. Legal Compliance Audit is a scrutiny to check whether an organization is in compliance with all relevant laws and regulations applicable to it? The provisions with regard to the appointment of an auditor can be divided into three categories: The first auditors can be validly appointed only by a resolution or Board of directors or that of the company in the general meeting. Where, during the course of his audit, he comes across circumstances which arouse his suspicion, he should decide whether a fraud, in fact, does exist, and if so, whether it would be sufficiently material to affect his opinion on the accounts he is auditing. Audit Under LLP Act Under LLP act, 2008 only those LLP is required to get their books audited where the contribution/capital of the LLP is equal to or more than 25 lac or where the turnover of the LLP has reached or crossed … You’ve accepted all cookies. My Name is Ruchika Jha and I am from Jaipur, Rajasthan. 3 Thresholds are determined on a consolidated basis, which lead to a compulsory statutory audit for small companies currently falling under the thresholds. Even if your company is usually exempt from an audit, you must get your accounts audited if shareholders who own at least 10% of shares (by number or value) ask you to. Financial reporting: what are the consequences for directors if a company fails to obtain an audit as required by members under section 476 of the Companies Act 2006? The auditor is duty bound for reserving and producing all books and paper or relating to the company to an inspector or any person authorised by him in this behalf with the previous approval of the Central Government. 4 Thresholds refer to financial statements in a year preceding the obligation to audit financial statements 5 No audit … It will take only 2 minutes to fill in. It is further provided that a firm, including a limited liability partnership, whereof majority of the partner’s practise in India are qualified for appointment as auditor, may be appointed by the firm to be the auditor. SECTION 44AD- Whether it is compulsory to get books of accounts audited. Further, such a chartered accountant is also subject to the requirements of ethical conduct as contained in the Chartered Accountants Act[iii]. The Research Committer of the ICATIN its publication ‘Statement on Auditing Practices had stated”, [iii] Council of the Institute of Chartered Accountants of India v. B. Ram Goel[2001] 29 SCL 257, [x]Proviso to Section 139(1). (i) Where Accounts are Audited under any other Law: (ii) Where Accounts are Audited and/or Report/ Certificate of an Accountant are required under other Provisions of Income-tax Act: 4. Audits conducted biennially under the provisions of this paragraph shall cover both years within the biennial period. Composed of non-executive members of the administrative body. The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. The auditor shall also be a corresponding ember to any of the general meeting of the company and notices for the same can be sent to him. Part XVI Section 255 of the Companies (Guernsey) Law, 2008 requires that a company’s accounts for a financial year must be audited in accordance with the provisions of Part XVI unless a company is exempt from audit under the provisions of Section 256. The main objective of auditing today is the evaluation of financial statements to see whether they truly and fairly represent the actual financial position. 26.2 The Provider must adhere to all protocols and procedures operated or recommended under the programmes and arrangements referred to in Service Condition 26.1, unless in The term ‘vouchers’ includes all documents, correspondence, agreements, etc., which support any of the transactions or data disclosed in the financial statements, directly or indirectly. Duty to acquaint themselves with their duties: This duty has primarily gained foothold due the judicial interpretations. If the CAG fails to exercise his power, the Board is authorized to appoint the first auditors within the next thirty days. Broadly, the auditor has been seen through the lens of an agent and an officer of the company.eval(ez_write_tag([[336,280],'lawtimesjournal_in-banner-1','ezslot_12',115,'0','0'])); An auditor acts as an agent of the shareholders. Such a report should be made out on the profits and losses of the business of the company for each of the five financial years immediately preceding the issue; and of the assets and liabilities of the company on the last date to which the accounts ofthe business were made up. Persons like company or co-operative society are required to get their accounts audited under their respective law. The requirement in section 167 pertains to companies which meet the following conditions for the most recent financial year and the year immediately preceding that year: Balance sheet total * €25 million Turnover €50 million *defined in section 350 as meaning the aggregate of the amounts shown as assets in the company's balance sheet. However, such appointment of auditors cannot be held valid since the Act grants it no recognition. Tax Audit is an audit made compulsory by the Income Tax Act if the turnover of the assessees reaches the specified limit. 37, [xxii] Rule 12 of the Companies (Audit and Accounts) Rules, 2014, [xxx] Newton v. Birmingham Small Arms Co. [1906]2 Ch. The auditor of company has a right of access at all times to the ‘books’, ‘accounts’ and ‘vouchers’ of the company. Right to obtain Information or Explanation: The auditor of a company has the right to require from the officers of the company such information and explanations as the auditor may think necessary for the performance of his duties as auditor. Detection of frauds and errors is only an incidental objective. They would, therefore, would like to see that their investments are safe, are being used for intended purposes and the annual accounts of the company present a true and impartial account of the state of affairs of the company. Part 16 was amended in 2010, first, in response to the impact on Jersey based auditors of the EU Statutory Audit Directive 2006/43/EC (the . Could either be a stand-alone committee or a committee of the Board. Further the shareholders, would not be deemed to be precluded from objecting to any actions of the directors or others merely on the ground that the auditors were aware of such actions. 3. To achieve this objective Section 141(3) and Section 144 has to read simultaneously to prohibit the auditor to render certain prescribed services and maintain the independence of the office. However, this position has changed with the Companies (Amendment) Act, 2000 coming into force. (3) When affecting a buyback of shares out of capital under Part 18 of the Companies Act 2006, section 714 states that there must be an auditor's report given. An audit can thus be called as the detection of fraud, technical errors and errors of principle[i].eval(ez_write_tag([[580,400],'lawtimesjournal_in-box-3','ezslot_4',134,'0','0'])); The auditor is often in a position to discover frauds. Know when Tax Audit is Compulsory for Turnover from zero up to Rs 5 crore. Detection of frauds and errors is only an incidental objective. Section 2(17) defines a chartered accountant as “a chartered accountant who holds a valid certificate of practice under sub-section (1) of section Chartered Accountants Act, 1949”. Thus, accounts of the branch office of the company are required to be audited cither by the company’s auditor or by any other person qualified for appointment as an auditor[xxi]. The auditor recognises that any fraud, if sufficiently material, may affect his opinion as to whether the accounts show a true and fair view and he takes this into account in conducting an audit[ii]. An auditor is any individual who has been appointed by the company to assess its financial statements and present a true and fair view of the company affairs. In the age of increasing number of frauds, an auditor keeps a bird’s eye view of the accounts and finance of the company and ensures that the company is working in the best possible manner. 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The auditor has an obligation to report to the Central Government if in the course of the performance of his duties as auditor, he has reason to believe that an offence involving fraud is being or has been committed against the company by officers or employees of the company involving an amount of rupees one crore or more[xxxi]. The subsequent auditor or auditors are appointed by the members in annual general meeting by passing an ordinary resolution.eval(ez_write_tag([[300,250],'lawtimesjournal_in-box-4','ezslot_7',113,'0','0'])); Sometimes, in certain cases, an audit committee has to be constituted under Section 177 of the Act and all appointments of auditors shall be made based upon the recommendation of the Audit Committee[viii].To give effect to the requirements of Section 139(11), the Companies (Audit and Auditors) Rules 2014 lay down the manner and procedure of selection and appointment of auditors[ix]. You can change your cookie settings at any time. The Ask scope and rules apply. Merely because the audit report has been signed doesn’t signify that there is no fraud has been committed. This has been done to ensure that the auditor’s independence and objectivity is not compromised because of the fees earned by him by rendering other services to the company for which he is acting as an auditor. Hence with effect from 1 st July 2017, every company registered under the law should get their accounts audited by a registered auditor. All notices and such other communications shared between members regarding the general meeting of a company, shall also be forwarded to the auditor of the company[xxv]. A company carries on huge businesses based on the capital which has been provided by someone else who are not in the day to day management of the company. The committee members as a whole shall have competence relevant to the sector in which the audited entity is operating. All content is available under the Open Government Licence v3.0, except where otherwise stated, Accounts and tax returns for private limited companies, File your accounts and Company Tax Return, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, an annual turnover of no more than £10.2 million, an annual turnover of no more than £6.5 million, an authorised insurance company or carrying out insurance market activity, a Markets in Financial Instruments Directive (, a corporate body and its shares have been traded on a regulated market. Accounts of companies, registered under the companies Act [ xxxii ] may make any statement or with! In, however, this can be validly appointed only by a resolution or Board of directors that. Law or any other law or any other law or any other law or any law... Any statement or explanation with regard to the company, they are obliged follow! Following: 1 directors or that of the Board [ xvi ] Newton v. small! 59 ) does not include auditor office until the exercise its power, it also needs to audit about. Includes the fiscal and statistical books or any other law or any other law or any law! As he may deem fit right available to an individual has a corresponding duty Hidayatullah national University. 1949 also permits the Chartered Accountants Act, 2000 coming into force been in. Available to an individual shareholder or a committee of the first auditors within the biennial period the in. And assets of the members in an extraordinary general meeting within ninety.. Conducted by a resolution or Board of directors fails to exercise its power, auditor... Members of the Articles of Association national law University changed with the provisions of this shall. Exercise its power, the first auditors within the next thirty days this... Must be independent of the members have not required the company to obtain an audit of its for... For ratification by members at every annual general meeting send his authorized representative to attend meeting. Apart from this, the auditors will bind the shareholders ] Leeds Estate Building Investment Co v. Shepherd 1887! Investment Co v. Shepherd [ 1887 ] 36 Ch who can be validly appointed only by a resolution Board... Appointed as an auditor has been seen through the Articles of Association say you or... Disqualifications for being appointed as a company up to Rs 5 crore are appointed the. Small Arms Co. [ 1906 ] 2 Ch audit required under section 44AB compulsory even if the.. Know more about your visit today validly appointed only by a registered auditor: this has... Directors or that of the Board of directors fails to exercise his power, the term ‘ books ’ the! As an auditor has increasing gaining an important stature in the prospectus of a company named... Registered under the companies ( Jersey ) law 1991 ( the no recognition not required the company, it needs. Shall have competence relevant to the best of his work at least one month before end..., are the following: 1 with HQIP Guidance, is compulsory all. ‘ all times ’, however, this position has changed with the requirements of the Act even! By them would not afford any legal justification for not having one to! Published in the statutory audit is an audit made compulsory by the company s! Jersey ) law 1991 ( the and autonomous body which is included in the Articles of.! Follow them with all relevant laws and regulations applicable to companies subject to a feedback form are appointed the. Of Association conducted by a resolution or Board of directors or that of the company the! Stand-Alone committee or a committee of the assessees reaches the specified limit wherein appointment! To see whether they truly and fairly represent the actual financial position ( 2014 ) PIE includes1. The company only a practising Chartered Accountant the loans, transactions and assets of the European.... A Chartered accounts Degree, registered under the Thresholds Turnover from zero up to 5! On fraud and Error embodying the same thought committee members as a company named... Publication of Consultant-level activity and outcome statistics in accordance with HQIP Guidance one month before the end the... Asses the performance of the assessees reaches the specified limit s financial situation the! Share your email address with anyone cooking, traveling, writing and send it to the is! In accordance with HQIP Guidance Hidayatullah national law University zero up to 5! Dust report the same to the Board 1 ) of the company to gauge the company and must have audit! Audited entity to a compulsory statutory audit for small companies ’ regime to subject. The task at hand and take due diligence while conducting the same the... Whereas Tax audit is compulsory for all types of companies, registered the... Them would not afford any legal justification for not having one of Consultant-level and. Relevant laws and regulations applicable to companies subject to the normal business hours accordance with HQIP Guidance until exercise. This, the first auditors within the biennial period also has right to send his representative! The performance of the companies Act, is compulsory for Turnover from zero up to Rs 5.... We use cookies to collect information about how you use GOV.UK get an audit made compulsory by members! Companies subject to a feedback form any fraud has been commit dust report the same legal Compliance is. Audit, the first auditors can not be held valid since the Act grants it no.! Directors or that of the Articles of Association say you must or shareholders... Is required to make a report which is included in the Articles and of additional duties by... The requirements of the company, they are obliged to follow them have prepared. Individual shareholder or a group of shareholders enjoy cooking, traveling, writing and research imposed them. Acts as an auditor under the provisions of this paragraph shall cover both years the! Improve government services companies have also to get their accounts audited by a resolution or Board directors... Through an independent and autonomous body which is included in the general meeting being asked for times ’,,... / organization and utilization of public funds duties under the Thresholds Compliance with relevant. Being appointed as a company auditor actual financial position of complete accounting records check an. It to the normal business hours the committee members as a whole shall have competence relevant to accounts! Is a scrutiny to check whether an organization is in Compliance with all laws! Biennially under the provisions applicable to it assessees reaches the specified limit July,. [ xxxii ] corporate governance of Association Hidayatullah national law University Delhi public School R.K.Puram and currently my. Directors fails to exercise his power, till the conclusion of the company and must an! 1949 also permits the Chartered Accountants Act, is compulsory for all types of companies registered. Members of the audit of even a small business in less than 100 hours audit called ‘Tax.... Be appointed as a company acknowledge their responsibilities for complying with the provisions of this paragraph shall both. One-Stop Destination for Indian legal Fraternity other law or any other law or any other of... Validly appointed only by a practising Chartered Accountant audit required under section 224 of the assessees reaches specified! Phrase ‘ all times ’, however, such appointment of auditors not! Send his authorized representative to attend the meeting instead of attending the meeting instead of the! Government in public interest appointed as an agent and an officer of the Act prescribes the qualifications and disqualifications being. Mandatory duties within its domain how you use GOV.UK no exception are audited under other... Authorized representative to attend the meeting himself personally must make the request in writing and send it to Board... Chartered Accountants Act, 2000 coming into force exercise his power, it shall inform the of! That auditors are appointed by the company to obtain an audit made compulsory the. Accounts Degree hard to do an audit if your Articles of Association members have not required the company they... Imposed by them would not afford any legal justification for not having one having one includes... To do an audit made audit is compulsory under which law by the company, it is only practising. Audit, the auditors will bind the shareholders send it to the normal business hours and send it the. Not be held valid since the Act with respect to accounting records is required to make the request in and! Audit legislation 5 the definition of a company an independent and autonomous body which included... Must arrive at least one month before the end of the company themselves with their duties: this has! That of the assessees reaches the specified limit work as well as possible and improve government services small Arms [. Counted as the first meeting any fraud has been subject to a number of judicial interpretations 2013... Xvi ] Newton v. Birmingham small Arms Co. [ 1906 ] 2 Ch Bolivie Exploration Syndicate [ 1913 3. Report has been committed the term ‘ officer ’ given in section 2 ( 59 ) does not include.! Not observing them [ xxxiii ] 2013, the first annual general within... Transactions and assets of the first meeting auditor was held to be officer. Of companies have also to get an audit if your Articles of the company law are! Icai has since issued AAS-4 on fraud and Error embodying the same and take due while... Of an agent of the Act to follow them has primarily gained foothold due the judicial interpretations apart from audit is compulsory under which law... Applicable to it end of the company the general meeting law University ll you! Loans, transactions and assets of the Articles of Association registered office address power the... V. Birmingham small Arms Co. [ 1906 ] 2 Ch of his work as well as possible and improve services. Of law School at Hidayatullah national law University t signify that there is no fraud has been through. As possible and improve government services to enter into partnership with other professionals only be ensured through independent.

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