Question

What are the duties of company auditor as per companies act 1956?

Answer 1

Lol, I want points, sorry.

Answer 2

Answer:

The audit is intended to safeguard the interests of the shareholders, and the auditor is required to review the books kept by the directors in order to inform the shareholders of the company's actual financial situation.

Explanation:

Duties of company auditor as per companies act 1956:

• By granting the auditor the right to inspect and examine the books and accounts, balance sheet, vouchers, and other documents as may be necessary for the purpose of the audit report, the Companies Act facilitates the auditor's responsibility to report a true and fair view of the company's financial status.
• The auditor has the right to ask any officer of the company for information or an explanation. The officers are expected to provide the auditor with any information that is requested.
• Additionally, the auditor may enquire in relation to the six specific subjects listed in sub-section 1A of section 227 for the purpose of an audit.
• Additionally, if he deems it necessary, he may request the minutes of any meetings or attend the company's general meetings.
• The auditor is required to exercise reasonable care to ensure that the company's provided books accurately reflect the company's financial situation. The auditor may also extend his investigation outside the books by making any inspections or inquiries permitted by section 227.
• The auditor must ensure that the balance sheets and accounts accurately reflect the company's financial situation in addition to verifying their mathematical accuracy.

Thus, the auditor also has the additional responsibility of informing the shareholders of whether or not, in his judgement, the business has maintained its books of accounts correctly.