accounts & auditors

8/9/2019 Accounts & Auditors

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Presented by-

Brijesh Pulaiya

Accounts and Auditors


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Books of Accounts

It should be kept by company

Ordinarily be kept at the registered office

Shall be preserved for a period of not less than 8 years

Inspection is done by the Registrar and by such other

officer as may be authorised by central government.


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Statutory Books

It is a book with a view to safeguarding the interest

of shareholders

It is open to inspection of all under the different

sections


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National Advisory Committee

on Accounting Standards

It advise the central government on the formulation

and laying down of accounting policies and

accounting standards for adoption under the

companies act, 1956.


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Boards Report

Attached by the board of directors in every balance

sheet laid before the company in general meeting

It contains-

The state of the companys affairs

Amount of reserves

Amount of dividend

Material changes affecting the financial position of

the company


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Directors Responsibility Statement

It contains-

Annual accounts follows accounting standard

Accounting policies and application of them are

used in the public interest

Boards report is signed by chairman.


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Filing of accounts with the Registrar

3 copies of balance sheet and P&L account along

with reports and documents of a company shall be

filled with the registrar within 30 days from the

general annual meeting of company


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Auditors

Servant of the shareholders

Duty is to examine the affairs of the company Should be a chartered accountant

Appointment in annual general meeting

Re- appointment is possible


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Types of Auditors

Internal

employees of a company hired to assess andevaluate its system of internal control

External

independent staff assigned by an auditing firm to

assess and evaluate financial statements of their

clients


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APPOINTMENT OF AUDITORS

First Auditors- shall be appointed by its board of

directors within 1 month of its incorporation.

Subsequent Auditor appointed every year by the

shareholders in AGM (Annual General Meeting) by

passing an ordinary resolution.

Appointed auditor has to communicate hisacceptance or refusal to the registrar within a

period of 30 days of appointment letter


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DISQUALIFICATIONS OF AN AUDITOR

A body corporate

A

n officer or employee of the company person who is indebted to the company, given any

guarantee or provided any security

Person who has security carrying voting rights


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Auditors Report

It contains accounts examined by auditor like

shares, debentures, loans and advances, other

securities

Balance sheet and P&L account


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Matters to be stated in Auditors Report

The information which he has collected is at best ofhis knowledge and belief

Books of account as per the govt. law

P&L account and balance sheet compiled with theaccounting standards

In his opinion, whether the accounts give theinformation required by the act

The observation made by auditor about companysfunctioning


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Duties of Auditors

To scrutinize loans & advances

To scrutinize entries

To scrutinize investment

To scrutinize expenses


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Rights and Powers of Auditors

Right of access to books, accounts and vouchers

Right to obtain information and explanations

Right to visit branch offices

Right to receive notice of general meetings and to

attend them

Right to receive remuneration


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Seizure of documents by Registrar

To enter the place or places where such books and

papers are kept

To search that place or those places in the manner

specified in the order

Registrar may have the photocopies of the papers

and books.

Return the books and papers seized within 30 days


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