Audit report is not signed by assessee.

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This query is : Resolved

Leela jain (Querist)

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)

17 June 2014 since when did auditee started signing audit report?

Leela jain

Leela jain (Querist)

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)

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)

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)

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)

17 June 2014 In case of proprietorship concern?

Nikhil Kaushik

Nikhil Kaushik (Expert)

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)

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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