Audit related query

This query is : Resolved 

18 March 2014 Dear experts, a co s running under loss and the co has issued dividend for the preference shareholders. and it has been validates by a CA. now that equity shareholders of that co s questioning d auditor. How can an auditor justify d report? any sections r provisions relating to that?

18 March 2014 find out the source for making payment of such pref div and check whether legally allowed or not.


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