If the CAG fails to exercise his power, the Board is authorized to appoint the first auditors within the next thirty days. In case of a Government company or a company owned or controlled by the Central Government, State Government or in part, the first auditors shall be appointed by the Comptroller and Auditor-General of India within sixty days from the date of registration of the company. The majority of the members must be independent of the audited entity. Companies Law). Section 141(1) of the Act prescribes the qualifications and disqualifications for being appointed as a company auditor. In case the branch office is situated outside India, the accounts of the branch office are required to be audited either by the company’s auditor or by an accountant or by any other person duly qualified to act as an auditor of the accounts of the branch office in accordance with the laws of the country where the branch office is located. Section 21-2-498 - Precertification tabulation audits for federal or state general election (a) As used in this Code section, the term: (1) 'Incorrect outcome' is when the winner of a contest or the answer to a proposed constitutional amendment or question would be different from the results found in a manual recount of paper official ballots. He is not an insurer, he does not guarantee that the books do correctly show the true position of the company’s affairs; he does not guarantee that his balance sheet is accurate according to the books of the company, if he did, he would be responsible for an error on his part, even if he were himself deceived due without any want of reasonable care on his part say, by the fraudulent concealment of a book from him. On the contrary, he is appointed by the company to check the directors and for some purposes and to some extent, it seems to me quite impossible to say that he is not an officer of the company. The auditor shall also be a corresponding ember to any of the general meeting of the company and notices for the same can be sent to him. … He is expected to safeguard their interests. Merely because the audit report has been signed doesn’t signify that there is no fraud has been committed. Thus, the first view of the auditor being a agent of the company seems to be compliant with the existing law of the land. Further, it is obligatory that any qualifications, observations or comments on the financial transactions or matters which have any adverse effect on the function of the company mentioned in the auditor’s report be read at the general meeting and also shall be open to inspection by any member of the company[xxvii]. For the year ending [your company’s year end date], the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Auditor not to render certain services. Persons like company or co-operative society are required to get their accounts audited under their respective law. Such a report should be made out on the profits and losses of the business of the company for each of the five financial years immediately preceding the issue; and of the assets and liabilities of the company on the last date to which the accounts of. However, such appointment of auditors cannot be held valid since the Act grants it no recognition. These include accounting and book keeping services, internal audit; design and implementation of any financial information system; actuarial services; investment advisory services; investment banking services; rendering of outsourced financial services; management services; and any other kind of services as may be prescribed. Lindley J, in London and General Bank, held that an auditor, is not bound to do more than exercise reasonable care and skill in making enquiries and investigations. As per the provisions of the Law, it is mandatory to get the books of accounts audited every year. However, this position has changed with the Companies (Amendment) Act, 2000 coming into force. Thus, it is only a practising chartered accountant who can be appointed as an auditor of a company. The auditor if recognises that any fraud has been commit dust report the same to the central government in public interest. In. It is the duty of the auditor to report to the members of the company on the accounts examined by him and on every financial statement which are laid before the company in general meeting[xxviii]. The Companies Act.eval(ez_write_tag([[580,400],'lawtimesjournal_in-medrectangle-3','ezslot_6',111,'0','0'])); According to section 141(1) “a person shall be eligible for appointment as auditor of a company only if he is a chartered accountant”. 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