Learn with Steem : TUTORIAL CLASS NO:7 PROVISIONS RELATING TO AUDIT UNDER COMPANIES ACT||Welcome to the classes of Cost and Accounting by @Monz122 || #burnsteem25

Hello everyone this is Monz from India hope you people are doing great and learning new things in life.Doesn't matter whatever your age is never stop learning. The day you will stop learning will be the day you will stop winning.

So here I am with my another tutorial classes of Company Accounts and Audit .Last class we learnt about different types of audits under companies act. In today's tutorial class we will cover the topics of appointment, qualifications, powers and duties of an Auditor.

Appointment of Auditors

Each and every company subject to the provisions of companies act 2013, shall appoint an individual or a firm who held the office till the period of previous sixth annual general meeting.
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The auditor is appointed in the first annual general Meeting. The company places the matter relating to such appointment by members for ratification at every annual general meeting. Before such appointment is made the documents like written consent of the auditor to such appointment a certificate of the appointment are obtained from the auditor.

Eligibility and Qualifications of an Auditor

• The first eligibility criteria for appointment as an auditor of a company is the auditor should be a chartered accountant.

• a firm where there is limited liability partnership is appointed as an auditor of a company only the partners who are chartered accountants shall sign the documents on behalf of the firm.

•the auditors must hold proper document and practice certificate and must not be a member of the same company which he is auditing for.

Powers and Duties of an Auditor

• An Auditor has the rights accessing the books of accounts and vouchers of the company.

• the auditor have the authority to check whether transactions of a company which are represented in the books are true and fare or not.

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• Every auditor of the company shall comply with the auditing standards.

• If any mistakement presented by the company is caught by the auditor it is his duty to inform the same to the respected managers of the company.

Resignation of an Auditor

The following are the conditions which an auditor has to fulfill during resignation:

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• within 30 days from the date of resignation an auditor shall file a statement in prescribed form with the registrar and the company.

• if the company is a government company dotted shell send such statement with CAG, explaining indicating the reasons of resignation.

• if the auditor fails to comply with the above procedures he can be punishable with fine .

So in today's tutorial we learnt about qualification disqualification and powers of the Auditor. If you have any questions relating to this tutorial then do ask me in the comment section.

Next class will be a continuation of other provisions related to the auditor under companies act 2013, if you have any queries do ask me in the comment section.

That's all for today's class thank you and have a great day ahead

Regards

@monz122