Company Law - Details in Companies' Auditor Reports
THE Ministry of Corporate Affairs has issued the Companies (Auditor's Report) Order, 2015.
The Order has specified some 12 questions, which the Auditor should answer and certify. A few samples.
1. Whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
2. Whether physical verification of inventory has been conducted at reasonable intervals by the management;
3. Is the company regular in depositing undisputed statutory dues including provident fund, employees' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities and if not, the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable, shall be indicated by the auditor.
4. Whether any fraud on or by the company has been noticed or reported during the year; If yes, the nature and the amount involved is to be indicated.