While conducting the audit of a company for the year ended 31st March, 2010 the auditor called for
he General Ledger for the year ended 31 March 2007 for some reference. He would not get that
ledger as the booked of accounts of that year were already destroyed as per the instructions of the
Executive Director of the Company.
COMMENT.
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company audit
Replies (5)
We will have to read section 128 with section 143
Section 128(5) states that the books of the company shall be maintained for a period of at least 8 years preceding the financial year. Further section 143 gives the auditor the power to ask for information relevant to discharging his duty as an auditor.
The action of the company in this regard is inappropriate.
The company is bound by law for a specified period of 8 years for retention of books of Accounts... they can't deny and restrict the scope of audit.
thank u all.👍👍
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