A Brief Overview Of Auditor’s Rights And Duties Under The Companies Act, 2013
- IJLLR Journal
- Jul 11, 2023
- 1 min read
Updated: Jul 11, 2023
Siddhartha Gupta, B.B.A. LL.B., University of Petroleum and Energy Studies
INTRODUCTION
An auditor must have specific powers in order to carry out his duties; otherwise, he may not be able to do so honestly, and he will be held accountable for any losses the firm would incur. When it comes to the authority and responsibilities of the auditor of a partnership firm or a single proprietorship, it depends on the contract that has been made between him and the organisation. But the Companies Act, 2013 has outlined the roles and responsibilities of auditors in relation to joint-stock companies. The Companies Act, 2013 does not expressly state the precise powers of a corporate auditor, however while carrying out his duties, the auditor has access to certain powers. The nature of powers gives the auditor the right to ask company officers for information and explanations when conducting an audit. These powers and duties have been mentioned in Section 143 of the Companies Act, 2013.
WHO IS AN AUDITOR?
An auditor is an unbiased professional who is qualified to conduct an audit. An auditor is tasked in determining the accuracy and dependability of a company's or organization's financial accounts. The word is occasionally used interchangeably with "comptroller." The term "audire" in the Latin language means "to hear." The word "audit" is derived from the verb "audire," and the title "auditor" was given to the person chosen to review the accounts.1
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