Date for directors report and audit report

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 Dear Sirs,

I am stuck in a question please request you to help as soon as possible

CA Firm is in Karnataka
Client Place is in Andra Pradesh

So I have given the dates as follows

Balance Sheet
Client Signing 31/08/2013
Auditor Signing 02/09/2013

Director Report and AGM Notice
04/09/2013

Audit Report
02/09/2013

Compliance Certificate 02/09/2013

Please help me this is very urgent

Ajay Mishra

Ajay Mishra (Expert)
Follow

16 October 2013 Hi

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].

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 Sir,

But Auditor sits at Bangalore and Client is at Hyderabad so the dates for signing balance sheets cannot be same na....

Ajay Mishra

Ajay Mishra (Expert)
Follow

16 October 2013 In that case you have made non compliance.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

16 October 2013 Sir,

I did not understand ur reply,

but my question is Directors signs Balance sheet and sends it to Auditor who sits in blore for his signature which may take 2 days through post

Ajay Mishra

Ajay Mishra (Expert)
Follow

16 October 2013 If you are appointing a auditor, then he should be present in the meeting.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok