Jigarsir's classes

143(1) : POWER AND DUTIES OF AUDITORS POWER : 1) Right to access the books of account 2) Right to seek and explanation about books of account DUTIES : 1) Verify the amount of loans and advances given without adequate securities. 2) Transaction recorded in books of entries. 3) Sale of investment below cost , explain the reason for this. 4) Check that any personal expense to revenue account or not, if yes than indicate in report. 5) Share issue for cash but detail not maintain.  143(2) : AUDIT REPORT It is the auditors duty to comment weather the financial statement is showing true and fair view or not. 143(3) : DUTIES OF AN AUDITORS 1) To obtain necessary and sufficient information and explanation regarding financial statement. 2) Prepare books of account are maintain as per law. 3) Branch audit report has been prepared by the person sent to the company other than statutory auditors. 4) Weather the balance sheet and profit a...

                                SECTION: 141 . Qualification of auditor 1) Individual =must be charted accountant. 2) Firm= majority of partners are practicing in India. 3) LLP= only charted accountant partners have rights to sign behalf of firm. Disqualification of auditor 1) Body corporate other than LLP 2) An officers or employee of company 3) A person who is a partner or who is a employment of an officer or employee of company 4) A person or his relative or partner: v Having investment of rupees 1 lakh or above in company or subsidiary      or holding or associate company or fellow subsidiary company v Debt of rupees 5 lakh or more or above in company or subsidiary or holding or associate company or fellow subsidiary company v A person guarantee given of rupees 1 lakh...

'' TRUE AND FAIR VIEW HAS NOT BEEN DEFINED IN ANY ACT '' 1) Financial statement should be drawn up in conformity with the provisions of schedule 3 of companies  Act, 2013. 2) Unambiguous, clear and is as per the relevant statutory requirement like disclosure , interpretation, etc. 3) Draw conclusions consistent with the circumstances of business of entity. 4) There is no under statement or over statement in balance sheet or profit & loss statement. 5) Prepare in accordance with GAAP ( Generally Accepted Accounting Principal ) which have been follow. 6) Event occurring after the balance sheet date but material enough to influence the financial position as at the end of financial year should also be considered by auditors. 7) All unusual, exceptional and non-recurring items have been disclosed separate .