26.1.3 make national clinical audit data available to support national publication of Consultant-level activity and outcome statistics in accordance with HQIP Guidance. Hence with effect from 1 st July 2017, every company registered under the law should get their accounts audited by a registered auditor. In Kingston Cotton Mill Co. Ltd[xiv], it was decided that the auditors are officers of the company.eval(ez_write_tag([[300,250],'lawtimesjournal_in-large-leaderboard-2','ezslot_5',116,'0','0'])); In India, in Connell v. Himalaya Bank Ltd[xv], it was held that auditors, if appointed at a general meeting of the company and if also paid by the company, were officers of the company. The auditor if recognises that any fraud has been commit dust report the same to the central government in public interest. This duty has primarily gained foothold due the judicial interpretations. transparency and accountability requirements as set out above, only certain companies are required to comply with the enhanced accountability and transparency requirements as set out in Chapter 3 of the Act: • All public companies and state owned companies … For the year ending [your company’s year end date], the company was entitled to exemption from audit under section 477 of the Companies Act 2006 … The company must not be part of a group that does not qualify as it includes ineligible companies under the previous point. Section 44AB Audit is called Tax Audit ----- Accounts Already Audited (1) If accounts are audited under any other law then section 44AB audit not required but Audit report in specified form to be submitted . The status of an auditor has been subject to a number of judicial interpretations. The majority of the members must be independent of the audited entity. The auditor shall also be a corresponding ember to any of the general meeting of the company and notices for the same can be sent to him. Financial reporting: what are the consequences for directors if a company fails to obtain an audit as required by members under section 476 of the Companies Act 2006? In London and General Bank[xiii]case, an auditor was held to be an officer of the Company. We’ll send you a link to a feedback form. S ection 44AB provides that, if a person is required by or under any other law to get his accounts audited, then he need not again get his accounts audited to comply with the requirement of section 44AB. The provisions with regard to the appointment of an auditor can be divided into three categories: The first auditors can be validly appointed only by a resolution or Board of directors or that of the company in the general meeting. He is not a servant of the directors. I. Tax Audit is an audit made compulsory by the Income Tax Act if the turnover of the assessees reaches the specified limit. Example:- For Companies,Accounts Audited Under Companies Act called Statutory Audit, hence tax audit under Section 44AB not required to be conducted separately To achieve this objective Section 141(3) and Section 144 has to read simultaneously to prohibit the auditor to render certain prescribed services and maintain the independence of the office. The new Audit Directive and Regulation have now been published in the Official Journal of the European Union. Such a report should be made out on the profits and losses of the business of the company for each of the five financial years immediately preceding the issue; and of the assets and liabilities of the company on the last date to which the accounts ofthe business were made up. The main objective of auditing today is the evaluation of financial statements to see whether they truly and fairly represent the actual financial position. An auditor under the Companies Act is no exception. Thus, accounts of the branch office of the company are required to be audited cither by the company’s auditor or by any other person qualified for appointment as an auditor[xxi]. Companies with transferable securities2 listed on EU regulated markets3 (as opposed to all markets in the EU) and governed by the law of an EU member state4 (requirement is consistent with the same category under Statutory Audit Directive (2006)); We use cookies to collect information about how you use GOV.UK. 4 Thresholds refer to financial statements in a year preceding the obligation to audit financial statements 5 No audit … The chartered accountant conducting the tax audit is required to give his findings, … He is not an insurer, he does not guarantee that the books do correctly show the true position of the company’s affairs; he does not guarantee that his balance sheet is accurate according to the books of the company, if he did, he would be responsible for an error on his part, even if he were himself deceived due without any want of reasonable care on his part say, by the fraudulent concealment of a book from him. 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