Rights and duties of company auditor

Meaning
Rights
Duties
MCQ
Duty to report
Duty to enquiry
Sign his audit report
assist to Investigators
Give a statement in prospector

1. Rights and duties of a company auditor Under the Guidance of SUNDAR B.N Asst. Prof.& Course Co-Ordinator, Post-Graduation Studies in Commerce G.F.G.C.W. Holeneresipura Sandhya S.G 1st M.Com

2. Content Meaning of auditor Rights of auditor Duties of auditor MCQ Reference

3. Meaning of Auditor An auditor is an individual who examines the accuracy of recorded business transaction. Auditor are needed in order to verify that process are functioning as planned, and that the financial statements produced by an organization fairly reflect its operational and financial results.

4. Rights of a company auditor 4 Rights Rights to access books Obtain information Seek legal Visit branches Receive notice Correct any wrong statement

5. 1.Right of access to books of account: Under section 143(1) of the companies act 2013,an auditor of a company has a right of access , at all times , to the books of accounts and vouchers of the company , wherever they are kept. 5

6. 2. Right to obtain information : . An auditor of a company has a right to obtain from the directors and officers of the company such information and explanations as he may think necessary for the performance of his duties as an auditor. 6

7. 3.Right to correct any wrong statement : An auditor of a company has a right to correct any wrong statement made by the directors relating to the accounts to be laid before the company in the general meeting . 7

8. 4.Right to receive notice : An auditor of a company has a right to receive notice and other communications relating to any general meeting in the same way as a member of the company whether accounts done if they are discussed or not at that meeting. 8

9. 5.Rigth to visit branches: An auditor of a company has the right of access to branch accounts and can examine the branch account are examined by some other person. 9

10. 6.Right to seek legal: an auditor has a right to take legal, technical or expert advice on any matter relating to the business in order to perform his work satisfactorly. it may be noted that, no doubt , the auditor has the right to seek legal, technical or expert advice. 10

11. Duties of a company auditor 1.duty to report 2.duty to make certain enquiries 3.duty to sign his audit report 4.duty to assist investigators 5.duty to give a statement in prospectus 11

12. 1.Duty to report: Under section 143 of the companies act 2013 an auditor of a company should make a report to the shareholders on the accounts examined by him and on every balance sheet and profit and loss account laid before the company in the general meeting. 12

13. 2.Duty to make certain enquiries: under section 143(1) of the company act 2013an auditor of a company should enquire: whether the transactions of the company which are represented merely by book entries are not prejudical to the interests of the company. 13

14. 3.Duty to sign his audit report: It is the duty of an auditors to sign the audit report prepared by him. In the case of a firm of auditors, any partner of the firm should sign the audit report. 14

15. 4.Duty to assist investigators: It is duty of the auditor of a company to preserve and produce all books and papers relating to the company under investigation to the investigators or inspectors and to give them all assistance in connection with the investigation.

16. 5.Duty to give a statement in prospectus: A prospectus issued by an existing company should contain a statement from the auditor of the company regarding. Rate of dividends paid by the company for each of the five financial years preceding the issue of the prospectus. 16

17. MCQ 1.Sec. 143 of companies act 2013 deals with_ a)powers and rights of an auditor b)removal of an auditor c)appointment of an auditor d)remuneration of an auditor Ans: a)powers and rights of an auditor_ 17

18. 2.Duties of an auditor is : a)statutory duties imposed by the companies act b)duties imposed by legal or court decisions c)duties arising out of professional etiquette d)all of the above ANS : D)all of the above 18

19. 3.Sec.140 of the companies act 2013 deals with a)removal of an auditor b)appointment of an auditor c)remuneration of an auditor d)none of the above ANS: a)removal of an auditor 19

20. 4.A special auditor is appointed by the a)shareholders b)board of directors c)central government d)C & A ANS:C) central government 20

21. REFERENCE Title: rights and duties of an company auditor Retrieved From : principle and practice of auditing B.S Raman Head of the dept. Of Commerce 21

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