SECTION 143 OF COMPANIES ACT, 2013 ( WITH AMENDMENT )

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 and loss account are in agreement with the books of accounts and returns.
5) The auditors must form his opinion on financial matters which have an adverse affect on thr functioning of company.
6) Any director is disqualified u/s 164 or not.
7) Any adverse or negative comment regarding maintenance of books of account.
8) Internal control measure are adequate or not.
9) Other matter that company may prescribe in future.


143(5) TO 143(7) : POWER OF C&AG IN CASE OF GOVERNMENT COMPANY


1) Audit report shall include direction issue by C&AG and it shall also include the impact on company's account & balance sheet after taking sufficient action.
2) Supplementary audit within 60 days from receipt of audit report u/s 143(5)
3) Any comments given by C&AG on supplementary audit report shall be sent to every person mention u/s 136 & such report must be present in front of shareholders in AGM.


143(8) : BRANCH AUDIT


1) Branch office of company is located in India :
        a) By the auditor appointed for company, or
        b) By any person qualified for appointment as an auditor of company under section 139
2) Branch office of company is located out side India :
        a) By the company auditor, or
        b) By an accountant, or
        c) Other person duly qualified to act as an auditor of the accounts of branch office accordance with the laws of that country.


143(9) & 143(10) : AUDITING STANDARDS


All auditors must be followed auditing standards in auditing work which is issue by NFRA


143(12) TO 143(15) : REPORTING OF FRAUD BY AUDITOR


1) Auditor shall forward his report to board or to audit committee as the case may be , immediately after he comes to knowledge of fraud, seeking their reply or observation within 45 days.
2) On the receipt of such reply or observation, auditor must forward his opinion & reply to the government within 15 days from date of receipt in form ADT-4. 

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