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Qualified report - private and public company

Anil (1638 Points)

23 June 2012

What are the LEGAL consequences (Penalty or otherwise) of qualified Audit report under Income Tax Act and Companies Act for :

1) Private Company

2) Public company.

Kindly take up the questions separately for Pvt and Public company and quote sections whenever possible.

Thanks.

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3 Replies

SkDash (CS (Member) CWA (Final)) (909 Points)
Replied 23 June 2012

In case of violation, you will be penalised under different enactments of companies act and income tax act as the case may be. It may prone to investigation against you. There is no penalty for getting a qualified audit report.

Anil (1638 Points)
Replied 23 June 2012

Thank you Sir.

Please let me know under which sections of Companies and Income tax act the company will be penalised . Also please mention against each section whether it is appliable for public company or pvt. company.

I appreciate if you can quote specific sections.

Anil (1638 Points)
Replied 26 June 2012

Dear SkDash Sir,

Please quote at least one section of Income Tax Act and one section of Companies Act which deal with penalising companies for qualified report of auditors.

Thank you