The Companies Act confers extensive powers on the auditor. Since, he is the agent of the shareholders, he is having all the Rights, which other business owners shall generally have.

Specific provisions are made in the Act and so the auditor cannot be prevented by anybody in the universe from the Elmer Smith Oil Company of these rights. The following are the statutory rights of an auditor:. The auditor has a right of access to books of account, vouchers, and relevant documents of the company at all times during his term of office.

Therefore, the auditor can even pay a surprise visit and check the entries in the Rights Of Company Auditor of accounts. But usually the auditor does not make such visits. The auditor has a right to obtain whatever information or explanation he requires in performing his duty.

The person from whom the auditor requires such explanation must provide the same. The person may be the Managing Director, Director, Manager or any other officer or employee. If any information sought by the auditor is refused, he should report the matter Rights Of Company Auditor the members. The auditor is also having a right to suggest suitable modifications in the method of accounting followed by the management. The directors, if a suggestion is made, should comply with it.

If not, the auditor should report the same to the members. But he has no right to make Rights Of Company Auditor alteration in the accounts of the company on his own accord. The auditor is also entitled to visit the branches of the company. However, if a qualified auditor audits the accounts of the branch, he can get copies of the accounts certified by the branch auditor, and always has access over such documents.

The auditor has no statutory right to visit foreign branches. The auditor has a right to Hongyuan Candy Company all notices and communications relating to all general meetings during his term. Even if the accounts audited by him are not Rights Of Company Auditor, the company should send a notice to the auditor.

The auditor is also entitled to attend the meetings. He can also speak at the meeting if any clarification is needed from him. If a firm is appointed, any partner practicing in India can sign. The first auditor should sign and authenticate a particular part of the Statutory Report. Besides he has a right to sign and authenticate any other document, which the Act requires to furnish.

He has a right to receive the remuneration fixed by the appointing authority. In the event of winding up, he can also rank as a creditor for the amount due. However, he can claim the amount only after completing the work fully and entirely. The company under certain circumstances can take both civil and criminal proceedings against the auditor. If legal action is taken against him, he will generally defend himself against the proceedings. If the judgement goes to his favor or he is acquitted, the company should compensate the loss incurred Export Merchant Company him in defending the suit.

The auditor has a right to take advice or opinion of legal and technical experts if there is a need for it. This site uses Akismet to reduce spam.

Learn how your comment data is processed. Statutory Rights of an Auditor. Table of Contents Statutory Rights of an Auditor 1. Right to Access to Books of Accounts 2. Right to Obtain Information and Explanations 3. Right to make Suggestions to the Board 4. Right to Visit Branches 5. Right to Receive Notice and Attend Meetings 6.

Right to Sign the Audit Report 7. Right to Remuneration 8. Right to be Indemnified 9. Right to take Legal and Technical Advice. Related Posts. Leave a Reply Cancel reply.

Rights and Duties of Company Auditor ToughNickel

Apr 25, 2016 · Company auditor has rights to access the books and records of the company. He can refer to any book. Company auditor has right to get explanations from company staff. If such explanations are not received he qualifies his report. Company auditor has right to receive notice of general meetings. He can attend the general meetings.…

Duties of an Auditor: Power, Remuneration, Eligibility

Every auditor has a right of access to the books of account and vouchers of the company at all times, whether they are at the registered office of the company or at any other place. The auditor of a holding company also has a right of access to the records of the subsidiary company if they are necessary for the purposes of the consolidation.…