Download - 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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