attendance by statutory auditors in audit Committee
This query is : Resolved
21 April 2009
Is it compulsary for the statutory auditors of a public Co. to attend the audit committee meetings for all the items under any Act, regulations or guidelines ? Pls. give the references also.
If compulsary, what are the implications to the auditor and the Company if not attended?
If compulsary, what are the implications to the auditor and the Company if not attended?
21 April 2009
As far as a Listed Company is concerned, acc to companies act, it is stated that the Internal as well as the statutory auditors shall attend the ACM under Sec 292A of the Companies Act,1956.
Sec 292A says:
If a default is made in complying with the provisions of this section, the company, and every officer who is in default, shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to fifty thousand rupees, or with both.]
so if the Statutory auditors are not invited to the meeting and as a result tof which they are unable to attend , the auditors can not be held responsible as 'officer in default' in this case?
Sec 292A says:
If a default is made in complying with the provisions of this section, the company, and every officer who is in default, shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to fifty thousand rupees, or with both.]
so if the Statutory auditors are not invited to the meeting and as a result tof which they are unable to attend , the auditors can not be held responsible as 'officer in default' in this case?
21 April 2009
sir
what would be the impact on company if the auditors are invited but are allowed to attend/participate only in specific agenda
what would be the impact on company if the auditors are invited but are allowed to attend/participate only in specific agenda
02 May 2009
Listed company is not actually governed by section-292A although it is available to a listed company.
Listed co. is basically governed by Listing Agreements.
Listing Agreements overrule section-292A is case of any contradiction.
It is compulsary for the statutory auditors of a public Co. to attend the audit committee meetings as per Listing Agreements.
Study Clause 49 carefully...
Listed co. is basically governed by Listing Agreements.
Listing Agreements overrule section-292A is case of any contradiction.
It is compulsary for the statutory auditors of a public Co. to attend the audit committee meetings as per Listing Agreements.
Study Clause 49 carefully...
02 May 2009
A company can not restrict the area of statutory Auditor..
Regards
Regards
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