STATUTORY DUTIES OF

AUDITOR
KALAIVAANI ST1302BD2477
BOGALAXMI
SANDEEP
LARRIES
NAIM
MS.HEMA

Checking books of accounts

An independent professional person qualified
to perform an audit.
Protection and guarantee from any
mismanagement
Sec 9(1)(a) - a company financial report must
be annually audited by an approved auditor.

WHAT IS AN STATUTORY
AUDITOR
UNDER
COMPANIES ACT,1965

Internal

External
Auditors

Auditors

CLASSIFICATIO
N OF
AUDITORS

Government
Auditors

Forensic
Auditors

SCHEME OF SECTIONS UNDER COMPANIES ACT

Section

Description

172

Appointment of Auditors, Vacation of office

153

Removal, resignation of auditor and giving of

special notice
Qualifications and disqualifications of
auditors
Remuneration of auditors

14
142
174
144

Powers and duties of auditors and auditing

standards
Auditor not to render certain services

146

Auditors to attend general meeting

871

Punishment for contravention

APPOINTMENT OF
AUDITORS

s.172(1)

By the shareholders
orannual general meeting.
By members of the company
in general meeting

s.172(2) Will hold office until the

conclusion of that first AGM.

QUALIFICATION OF AUDITOR

Section 14(3)
Accountant Act 1967
Registered

with MIA
approved bythe Ministry of Finance
At least 21 years old
Fit and proper person
Must not be disqualified by the Court
Passed the final examination in accounting of one of the
institutions specified in Section 14(1)(a), First Schedule,
Part I & Part II of the Accountant Act
Audit license approved for two (2) years and the audit
license is renewable.

STATUTORY DUTIES OF AN
AUDITOR
SECTION 174 (1)
SECTION 174 (2)(a)
SECTION 174 (2)(aa)
SECTION 174 (2)(b)
SECTION 174 (2)(c)
SECTION 174 (2)(d)
SECTION 174 (4)
SECTION 174 (3)
SECTION 174 (5)
SECTION 174 (6)
SECTION 174 (7)
SECTION 174 (8)
SECTION 174 (9)

STANDARD OF
CARE
BE INDEPENDENT

CARRY OUT
AUDIT
REPORT TO
APPROPRIATE
MANAGEMENT
Section 174(2)(d)

LIABILITY OF
AUDITOR TO
SHAREHOLDERS
AND OUTSIDERS

Auditors Rights CA 1965

Section 174 powers and duties of the company auditors to
report on financial statement.
Rights of access at all reasonable times to the accounting and
other records of the company.
The auditor is also entitled to obtain information and
explanations from any officer of the company
Right of Notification and Attendance at Company General
Meeting

AUDIT RISK
I.

Inherent risk errors in

II.

Control risk errors that

III.

Detection risk errors caught

IV.

Audit risk errors undetected

accounts

bypass controls
by auditor
by auditor

Remuneration
of Auditors

Fixed by the directors &

shareholders
Fixed by the company at
the AGM

Order by
the court

Failed to
make an
annual
return as
required

Accepting a
Disqualification
Undertaking

Strike
Of
Automatic

Disqualification
Restriction

An option to
submit to a
disqualification
without the
need for a court
hearing.

Undertaking

unable to
pay their
debts &
goes into
liquidation

Resignation
S.172(14) &
(15)

Death
s.172(3)

VACATIO
N OF
OFFICE

Removal

cannot be
removed
by the
directors

He is
not the
sole
auditor

Removal of Auditors
By

the annual general meeting

Order by a court
Automatic Disqualification - any offence
involving fraud or dishonesty.
Audit Exemption is being Availed of by
Company

CONCLUSION
Operate its business according to the law and
regulation, an auditor also must perform their
duties and properly.
An audit provides a high level of assurance about
an accountability matter.
If he found suspicious matter and refused to
disclose it, he has breached his duty as an auditor.
This will lead to collapse the business whereby it
affects the rights and interests of the stockholders
and stakeholders.

THAN
K
YOU

PRESENTATION
PART DETAILS

Sorry Guys For Late.

Sandep And Laries Please
1-2 (INTRO)
Come 2pm. We Are 1st
Group Who Are Going To
Present. Because Boga Sis
3-4 BOGALAXMI
Have Another Presentation
On The Same Time. Guys
5-6 SANDEP
Please Make Sure Do Some
7-8 LARIES
Research On Your Part.
9-10 NAIM
Please Wear Formal
11- BOGALAXMIDresses And Shoes. Miss
Hema Take Serious On This
12-LARIES
Part. Take Note! Prepare
Your Part Guys. Good Luck!
13-KALAI
Try Your Best! Tq

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KALAI
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SLIDE 14- NAIM
SLIDE 15-16 (ENDING)