before appoinment, an auditor owes to a company more than
rs.1000 and he clears his debt before appointment.he is due
to company upto 30-06-06.he is give his report between 01-
04-06 to 31-03-07.what is the duty of the auditor while
reporting on the transactios occured in his due period
- 1 Answers
- 3311 Views
- I also Faced
- E-Mail Answers
Answer / chalapathi rao govada
AS per Sec 226 of companies Act 1956,if any person who owes
to the company for a sum more than Rs1000 he is not
eligible to appoint as a auditor of such organisation.
So Sec 226 is not specify the Material date for deciding
the debtness.
But if you interpert the terminology used in Sec 226 it is
very clear that the date when proposal to appoint any
person as auditor has high significance.
It means when Auditor is proposed to be appoit as statutory
auditor is material date for deciding the validity of
appointment.
In the given case it is very clear that the individual is
owed to company more than 1000 which is repaid before
appointment.So on the date of proposal to appoint as a
auditor he is indebted to company.So he is not at all
eligible to appoint as a auditor for that organisatin.
In additin to this he is going to report if appointed for
the period which includes his indebtness.
So he is not eligible to appoint as auditor for such
company as per the provisions of Sec 226(2) of the
companies act.
You can aslo refer to the ICAI clarifications to this
extent.
| Is This Answer Correct ? | 3 Yes | 0 No |
what is the accounting test that is giving by Deloitte before technical interview? i am done with the first interview and aptitude test and now i am asked to take accounting test. what is it?
0 Answers Construction, Deloitte,
During the year a firm has received TDS of Rs.30 lakhs and out of this an amount of Rs.9 lakhs was adjusted against the taxes. However, in the balance sheet under the head assets,the firm shown Rs.30 lakhs towards TDS. Is it correct. In my openion, in the balance sheet, the assessee has to show only Rs.21 lakhs as asset in the balance sheet, after reducing the tax adjustemnt of Rs.9 lakhs. Pl. Clarify.
what is mean by misc- assets?
Three common types of confirmations used by auditors are (1) negative confirmations, (2) blank form positive confirmations, and (3) positive confirmations with information included. Place the confirmations in order of reliability from highest to lowest.Question 8 options: 1, 2, 3. 3, 2, 1. 2, 3, 1. 3, 1, 2.
What are the reasons for debtors outstanding showing as negative?
Would you consider alternative vacancies if so which:
If the wording of a governing document of a non-company charity requires accounts to be audited, does this mean statutory audit?
1. When is GRN raised? 2. what is the purpose of matching open PO listing against GRIR account?
what are the cost audit and management audit?
what do we carry audit
what supporting documents do we vouch to for sales, purchases, receivables, payables, sales cutoff, and liabilities cutoff?
what is statutaru audit??
Audit 
