Know Here The Rights Of Auditor Of Any Company In India

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Know Here The Rights Of Auditor Of Any Company In India

The auditor in a company plays a very important role. It can track the cash flow and find out any sort of miscalculation, error, or fraud in the whole process. They also help to audit the taxation of the organization.

Though there are many companies that hire third-party Auditor, the bigger names employ the company auditor to look after all the financial auditing all through the year.

There are certain duties and responsibilities fixed for the auditor in the company. Before hiring for the position, you must have a clear idea about their roles in the company.

So here we will discuss in detail the advantages that you can enjoy after hiring the Tax Auditor in Delhi. As per Section 227 (1) of the Companies Act, 1956, the company auditor can enjoy the following rights.

Also read: File Form GST DRC-20 for payment in GST

Rights of the Auditor:

• Access To Book of Account:
As the auditor, the person has to check all the expenses and profit of the company. For that reason, they enjoy the right to access all the books of accounts and vouchers from all the branches of the organization.

Along with that, he has the right to pay a surprise visit to the Director of the company to check all the accounts.

• Obtaining Information and Explanations:
The auditor has the right to ask for any information as well as an explanation that he/she thinks is necessary for the auditing from the Director’s office.

Only the person has the right to decide which information is required for the process. In case, the company refuses to provide the information, they have the right to mention it in the report.

• Make Correction Of the Wrong Statement:
The auditor has the make a report for the company members on every account he/she checked along with every Balance Sheet and Profit and Loss Account and documents declared by the company. It is the duty of the director to prepare and present them to the auditor.

In this course, if the auditor has found something faulty, he/she has the full right to suggest that to the Director to change. In any case, the Director does not carry out the change, then he/she may mention it to the other board members.

• Branch Visit:
As per Section 228, in case the company has one or more branch offices, then the auditor has the right to audit for those offices as well in case he is appointed under section 224 or under section 226. In case, the branch offices are not audited by the auditor, then he/she has the right to access all the account books, accounts, and vouchers.

• Signature in the Audit Report:
As per the Indian Government law (Section 229), the person who is appointed as the auditor by the company has the right to sign the audit report.

• Receive Notice For General Meeting and Attend Them:
The auditor of the company enjoys the right to receive notices and communication related to the general meeting of the company just like any other member of the company.

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