account and audit

8/7/2019 Account and Audit

http://slidepdf.com/reader/full/account-and-audit 1/13

SUBMITTED BY:-

LATIKA



Introduction:-

Book of account by the company [section 209&221]Every shall keep at its-registered office properbook of accounts with respect to:-

•All sums of money received and expanded by thecompany and in respect of receipt and expanditurehas taken place

•The assst and liability of the company

•All sales and purchase transaction of goods by thecompany



Possibility of efficient audit only when:-

• proper record relating to utilization of material

and labours are available.•System of cost accounting is adopted.

•Costing record are maintain properly.

Proper books of account shall be deemed to bekept with respect to the matters specifiedtherein:-

•If such book give true fair view of the state of

affairs of the company or branch office andexplain its transaction;

•If books are kept on accrual basis and areaccording to the double entry system of

accounting;



Following person shall take all reasonable step

to secure compliance requirement by company

• Where the company has a managing director or

manager, such managing director or manager and allthe officers and other employees of the company;

• Where has neither managing director nor manager,every director of the company;



Inspection of books of account [sec-209]

Books of account and other books and papers ofevery company shall be open to inspection duringhours by register or by such officer of the govt

as may be authorized by the central govt in thisbehalf or such officers of the security exchange& board of india as may be authorized by it.



Annual account and balance sheet [sec 210]

• In case of company

The board of director must lay before the companybalance sheet and profit &loss account.

• In case of non-profit organizationAn income and expenditure should be submitted.



Content of balance sheet [sec-211]

• A copy of balance sheet of company of subsidiary;• A copy of its profit and loss account;• A copy of its director report;

• A copy of auditor report;Except in case of banking company , the balance

sheet and profit and loss account of the companymust be signed on behalf of the 2 board of

director and counter signed by manager orsecretary if any.



Audit and Auditor

Audit:-checking of book of account to find outaccuracy true and fair view of b\S and P&Laccount.

Auditor”-it’s a person who check the books ofaccount,document and vouchers.



Appointing of Auditor

APPOINTING

BOARDOF

DIRECTOR

SHAREHOLDEROF

COMPANY

CENTRALGOVERMENT



QUALIFICATION [SEC-221(1),2)]

• Should be charted accountant

• should hold a certificate under restricted auditorcertificate (part b states) rules ,1956



Disqualification [sec-226(3)]

• A corporate body

• An officers or employee of the company

• A partner or a employee of forgoing

• A person who owes the company a reasonable amt

• Director or member holding more than 5% of thesubscribe capital



Power of Auditor[227(1)]

• Right to access to the company book of accountsat all the times to the book of account andvouchers of the company whether kept at head

office or elsewhere.• Right to obtain information and explanation.



Duties of Auditior

• Whether loan and advances made by the companyon the basis of securities

• Whether loan and advances made by the

companyhas been shown as deposit etc.

account and audit

Documents