Download - Account and Audit
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 1/13
SUBMITTED BY:-
LATIKA
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 2/13
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
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 3/13
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;
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 4/13
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;
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 5/13
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.
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 6/13
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.
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 7/13
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.
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 8/13
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.
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 9/13
Appointing of Auditor
APPOINTING
BOARDOF
DIRECTOR
SHAREHOLDEROF
COMPANY
CENTRALGOVERMENT
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 10/13
QUALIFICATION [SEC-221(1),2)]
• Should be charted accountant
• should hold a certificate under restricted auditorcertificate (part b states) rules ,1956
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 11/13
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
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 12/13
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.
8/7/2019 Account and Audit
http://slidepdf.com/reader/full/account-and-audit 13/13
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.