Date and place to be mentioned in auditors report and balanc
This query is : Resolved
19 July 2013
our Auditors are of Delhi and registered office of company is in Kolkata.what place should be mentioned in Auditors report and Balancesheet?WHETHER THE PLACE MENTIONED IN AUDITORS REPORT AND BALANCESHEET CAN BE SAME?PLEASE PROVIDE THE PROVISION?
19 July 2013
Hi
The date and place should be mentioned on Balance sheet at which it is approved by Board in Board Meeting.
In short, where the Board Meeting is held for adopting of Balance sheet.
The date and place should be mentioned on Balance sheet at which it is approved by Board in Board Meeting.
In short, where the Board Meeting is held for adopting of Balance sheet.
19 July 2013
Time factor of authentication of accounts and signing by auditors:
Where there is no time gap or very little time gap between the date of approval of accounts under section 215 by the Board of directors of a company and the date of the audit report thereon, the Department
is of the view that responsibility for the preparation of the accounts of a company belongs to the directors who have to approve them before the auditors make their report thereon. The Act is apparently silent on when the auditors may commence their work of audit. In other words, it does not clarify whether they have
simply to await the directors' report on the accounts or proceed with the audit work in the meantime immediately after their appointment at the last annual general meeting. The auditor's report comes at the
end of the audit process and section 215 mentions nothing of the process preceding the preparation of the audit report by the auditors. Further that section 227 of the Act, gives the powers to auditor to access at all times to the books and accounts and vouchers of the company, which amply suggests that they do not have to remain idle at any time after their appointment as auditors. Subject to the convenience of the company, he may actually commence the checking up of vouchers, etc., and the company may prepare trial balance sheets, etc., which will save time for the auditors in the preparation of their report in due course.
Thus, if the auditor signs the balance sheet on the same date on which the directors have approved it, it
may not be inferred from this solitary circumstance that the auditor has not performed the audit efficiently.
[DCA Circular No. 7 of 1974, dated 26-4-1974].
Time factor of authentication of accounts and signing by auditors:
Where there is no time gap or very little time gap between the date of approval of accounts under section 215 by the Board of directors of a company and the date of the audit report thereon, the Department
is of the view that responsibility for the preparation of the accounts of a company belongs to the directors who have to approve them before the auditors make their report thereon. The Act is apparently silent on when the auditors may commence their work of audit. In other words, it does not clarify whether they have
simply to await the directors' report on the accounts or proceed with the audit work in the meantime immediately after their appointment at the last annual general meeting. The auditor's report comes at the
end of the audit process and section 215 mentions nothing of the process preceding the preparation of the audit report by the auditors. Further that section 227 of the Act, gives the powers to auditor to access at all times to the books and accounts and vouchers of the company, which amply suggests that they do not have to remain idle at any time after their appointment as auditors. Subject to the convenience of the company, he may actually commence the checking up of vouchers, etc., and the company may prepare trial balance sheets, etc., which will save time for the auditors in the preparation of their report in due course.
Thus, if the auditor signs the balance sheet on the same date on which the directors have approved it, it
may not be inferred from this solitary circumstance that the auditor has not performed the audit efficiently.
[DCA Circular No. 7 of 1974, dated 26-4-1974].
28 June 2014
Delhi. Please see clause 27 of SA700.
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