Company Audit rules in new Companies Bill AUDITORS AND FINANCIAL STATEMENTS: 1. Every company is required at its first annualgeneral meeting (AGM) to appoint an individual or a firm as an auditor. Theauditor shall hold office from the conclusion of that meeting till theconclusion of its sixth AGM and thereafter till the conclusion of every sixthmeeting. The appointment of the auditor is to be ratified at every AGM. Individualauditors are to be compulsorily rotated every 5 years and audit firm every 10years in listed companies & certain other classes of companies, as may beprescribed. 2. Auditors have to comply with Auditing Standards. 3. Acompany’s auditor shall not provide, directly or indirectly, the specifiedservices to the company, its holding and subsidiary company. 4. A partneror partners of the audit firm and the firm shall be jointly and severallyresponsible for the liability, whether civil or criminal, as provided in thisCompanies Bill 2013or in any other law for the time being in force. If it isproved that the partner or partners of the audit firm has or have acted in a fraudulentmanner or abetted or colluded in any fraud by, or in relation to, the companyor its directors or officers, then such partner or partners of the firm shallalso be punishable in the manner provided in clause 447
Posted on: Sat, 10 Aug 2013 19:35:38 +0000
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