Companies Auditor in Jaipur
An auditor is an independent professional person qualified to perform an audit. In accounting, an auditor is someone who is responsible for evaluating the validity and reliability of a company or organization’s financial statements. The term is sometimes synonymous with “comptroller”. As per section 139, it is a prime requirement that every company shall at the first annual general meeting appoint an auditor who can either be an individual or a firm. Appointment includes reappointment.
Company can appoint an individual as an auditor for more than one term of five consecutive years and an audit firm as an auditor for more than two terms of five consecutive years.
Powers of an Auditor :
• Every auditor of a company shall have right to access at all time to book of accounts and vouchers of the company. The Auditor shall be entitled to require from officers of the company such information and explanation as he may consider necessary for performance of his duties.
• The auditor of the company shall sign the auditor’s report or sign or certify any other document of the company and financial transactions or matters, which have any adverse effect on the functioning of the company.
• The company must send all notices and communication to the company auditor, relating to any general meeting, and he shall attend the meeting either through himself or through his representative.
•Notice of general meeting must be given before 21 days either in writing or through electronic mode to the auditor in such manner as may be prescribed.
• The remuneration of the auditor of a company shall be fixed in its general meeting or any other manner specified.
• As per section 26, the company must mention in their prospectus the name, address and consent of the auditors of the company.
Duties of an auditor :
- The auditor shall make a report to the members of the company on accounts examined by him on every financial statements.
- The auditor of the government company will be appointed by the Comptroller and Auditor- General of India and such auditor shall act according to the directions given by them. He must submit a report to them which should include the action taken by him and impact on accounts and financial statement of the company.
- As per section 245, the depository and members of the company have right to file an application before the tribunal if they are of the opinion that the management or conduct of the affairs of the company are being conducted in a manner prejudicial to the interests of the company
- Where a company has a branch office, the accounts of that office shall be audited either by the auditor appointed for the company, or by any other person qualified for appointment as an auditor of the company.
- Every auditor shall comply with the auditing standards. The Central Government shall notify these standards in consultation with National Financial reporting Authority.
- If an auditor of a company, in the course of the performance of his duties as auditor, 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, he shall immediately report the matter to the Central Government within such time and in such manner as may be prescribed.
- As per section 305, at the time of winding up of a company it is a mandatory requirement that auditor should attach the copy of the audits of the company prepared by him.