Tuesday, April 15, 2014

Additional responsibilities of Auditor (Section 143)

  • Certain new aspects which need to be covered in an auditors’ report:
  • The observations or comments of the auditors on financial transactions or matters which have any adverse effect on the functioning of the company.
  • Any qualification, reservation or adverse remark relating to the maintenance of accounts and other matters connected therewith.
  • Whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
  • Auditor to report to Central Govt.(CG) if any offence involving fraud is being committed or has been committed against the company by its officers or employees within 30 days. Where any auditor does not comply with the above requirements, he or she shall be punishable with a fine.


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