Audit report is not signed by assessee.

This query is : Resolved

Leela jain (Querist)
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17 June 2014 if the audit report is not signed by the assessee but duly signed by the CA then what is its legal consequences??
I want to know all its legal impact??
On which legal ground a third party denied about its reliablity?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 June 2014 since when did auditee started signing audit report?

Leela jain

Leela jain (Querist)
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17 June 2014 sorry for this doubtful query.
Here audit report means attached balance sheet and p & l with audit report.
means sign by assessee on these b/s and p&l?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 June 2014 hmm...well without the auditee's signature, auditor's signature has no value...it has to be signed by the auditee to give it any legal validity

Leela jain

Leela jain (Querist)
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17 June 2014 ok thanx sir..
then this b/s and p&l with audit report is not valid?
can you explain the legal reference regard this?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 June 2014 see section 134 of the companies act require that the accounts need to approved through a signature of the directors. without that it cannot be said that the accounts have been approved.

Leela jain

Leela jain (Querist)
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17 June 2014 In case of proprietorship concern?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 June 2014 in case of proprietorship concern...only tax audit applies...even that needs to be accepted by the auditee online before it is accepted by income-tax department as filed.

Leela jain

Leela jain (Querist)
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17 June 2014 if this was the case two years earlier, when there was no provision of uploading the audit report online, what would be the consequence of non approval/ signature by the auditee?

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