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attendance of statutory auditors in audit committee metings

Meetings 1224 views 2 replies

Sajid Rahman

C.A. Final

71 Points Posted on 16 February 2009

Is it compulsary for the statutory auditors of a public quoted Co. to attend the audit committee meetings under any Act, regulations or guidelines ? Pls. give the references also.

If compulsary, what are the implications to the auditor if not attended?

Replies (2)

Priyanka

141 Points Posted on 16 February 2009

As far as a Listed Company is concerned, acc to companies act, it is stated that the Internal as well as the statutory auditors shall attend the ACM under Sec 292A of the Companies Act,1956.

Priyanka

Sajid Rahman

C.A. Final

71 Points Posted on 17 February 2009

Sec 292A says:

If a default is made in complying with the provisions of this section, the company, and every officer who is in default, shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to fifty thousand rupees, or with both.]

so if the Statutory auditors are not invited to the meeting and as a result tof which they are unable to attend .can the auditors be held responsible as 'officer in default' in this case?

Also should the statutory auditor draw notice to the above fact in his report,since CARO is silent on this matter. Are there any other guidelines\regulations from SEBI, ICAI or any other body?