Director personal Expenses

Originally posted by : kumar
	Hello Sir/friends, If Directors personal Exp. charged to revenue account is it duty of the auditor to report or not?

Kumar,

offcourse.. it is the auditors duty u/s 227(1A) of companies act...

Ofcoarse, its auditor only draws attention to such things.., whom else u expect to verify the books and report fairly??

Sure, Personal Expenses cannot be charged to company's books of accounts since it is specifically provided in the statute(Companies Act 1956)

Thank you

yes................

 yeah..sec 227 (1A) of the cos. act 1956

 Hey it is Auditor's duty to review such things in detail nd in case of default he is supposed to Report as per Sec 227(1A)....nd one more thing It vl be treated as default only if it is non contractual....

according to companies act the company and its members is not the and one and the same so they cannot charge personal expenses into company books and ofcourse the auditor mainly concentrates on this matter mainly