Audit of a branch

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Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2011 When the Branch Audit is mandatory?

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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27 September 2011 AUDIT OF ACCOUNTS OF BRANCH OFFICE [Section 228]
Where a company, whether a public or a private limited, has a branch office, its accounts should also be audited. The audit of the accounts of branch office can be done either by:
(i) the company’s auditor; or
(ii) by any other person who is qualified to act as the company’s auditor
However, if the branch is situated in a country outside India, a person who is duly qualified to act as auditor of the branch in accordance with the laws of that country, can also be appointed as auditor of branch.

If the branch is not being audited by the company’s auditor, he is then also entitled to visit the branch office if he considers it necessary to do so for the performance of his duties as the auditor. He has also a right of access at all times to books, accounts and vouchers of the company maintained at branch office.
There are separate rules, laws governing the bank branch audit.

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2011 Can you please tell me the limits regarding the same that when the Branch Audit is compulsory.

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2011 Can you please tell me the limits regarding the same that when the Branch Audit is compulsory.

CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)
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28 September 2011 Be specific about the limit you intend to know, all the branches of an organization are auditable, no need of any limit fixation; method, type and manner may vary.

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