Can aomeone tell me if i am correct or wrong about the sequence of events:
1) First BOD prepares draft F.Statement and gives it to auditor.
2)Auditor audits it and prepares audit report and dates the audit report.
3)The auditor gives audit report to BOD and BOD approves it financial statements and signs on it and takes responsibility of F.Statement and they also prepare and approve Director's report(date of signing balance sheet).
4)The approved F.Statements are shown in AGM and auditors report and Director's report are also shown in AGM to shareholders.
And when are the F.Statements issued to outsiders and shareholders? After AGM or before AGM.Are outsiders given F.Statement beforehand along with notice of AGM?
please help ipcc student.
Sequence that is usually followed in practice is:
- Accounts Department prepares draft of Balance Sheet
- Accounts Department gets the audit done; gets draft Balance Sheet cleared by the auditors and gets draft of audit report from auditors
- Board approves draft Balance Sheet; authorised directors sign on behalf of Board and give to auditors for their report
- Auditors also sign the Balance Sheet and give their report (this normally happens on the date of Board meeting when auditors are also present)
- Board approves draft of Directors' Report and the same is signed by the authorised directors
- Board approves draft of AGM notice and it is signed by authorised director [All this can happen in same Board meeting]
- Annual report (containing AGM notice, Directors' Report, auditors' report and Balance Sheet) is despatched to shareholders at least 21 days before AGM
- AGM is held on scheduled date
- Balance Sheet and annual return are filed with ROC after AGM
CAclubindia
