Audit of company.

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Anjay Nayak

Anjay Nayak (Querist)
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11 July 2013 Why audit of companies are compulsory..?

Ganeshbabu K

Ganeshbabu K (Expert)
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14 July 2013 Audit of Annual Accounts of a company is compulsory and is indispensable part of incorporated business. Those who carry on business with the other people’s money have to be accountable to the so-called owners. Management and accountancy demands specialised skill. Shareholders are generally laymen. Thus there arises a need of an agency to stand in between the shareholders and management. The agency, viz., statutory auditors, should be technically qualified for the job and should be independent, and able to withstand the pressure of management.

Refer section 224 OF COMPANIES ACT FOR RULES RELATING TO APPOINTMENT OF AUDITOR

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Ganesh babu k