CA Notes & Updates : Commerce Updates dan repost
20 Exam Revision Points from Company Audit Chapter
1. As part of disqualification, A Relative of an Auditor Shall not hold shares in the Company for more than Rs.1 Lakh value. Important Point is, Rs.1 Lakh shall be Face Value, but not Market Value.
2. An Auditor shall not provide Actuarial or Investment Banking Services to his Company (Sec 144).
3. First Auditor shall be appointed by BOD within 30 days from Company Registration. In case of Government Company, by CAAG within 60 days.
4. At Every First AGM, Company shall appoint an Auditor (Individual or Firm), who shall hold office till conclusion of 6th AGM of the Co.
5. In case of Govt Companies, Subsequent Auditor shall be appointed with in 180 days from close of FY. He shall hold office upto next AGM only. @canotes
6. Normal Casual Vacancy is filled by BOD with in 30 days. However, vacancy due to Resignation of Auditor shall be filled at Shareholders Meeting only.
7. Auditor Resigning should file his reasons in 'Form ADT-3', to Company and ROC.
8. Listed Companies cannot appoint an Individual Auditor for more than one term of 5 Consecutive years. For Firms, its two consecutive years.
9. First Auditor Remuneration is fixed by BOD. Subsequent Auditors, at AGM. @canotes
10. Auditor can be removed from office before their term, only through Special Resolution and approval of CG in Form ADT-2.
11. Audit Ceiling limit is 20 Companies per person. This 20 shall not include Private Companies having less 100 crore capital, small companies, OPC.
12. Auditor of a Holding Company shall have right to access books of SC. Join t.me/canotes
13. On encountering any fraud, Auditor shall first give notice to BOD or AC, with in 2 days. In case no reply with in 45 days, same shall be sent to CG with in the next 15 days.
14. If a Charge is not registered with in 300 days, the ROC shall accept it only after CG condones the delay. Join @canotes
15. Register of Loans shall be maintained in 'Form MBP 2'. Entries shall be made with in 7 days from event.
16. A Company can give a loan or guarantee exceeding the limit of 60% of capital, through a Special Resolution. @canotes
17. Cost Audit Rules are not applicable for companies engaged in generation of electricity for captive consumption (commercial use).
18. CA, 2013 mandates every Listed, unlisted public and private limited companies to prepare consolidated financial statements which are having subsidiary companies as defined under Section 2(8 7) of the Companies Act, 2013, which includes Associate Company and Joint Venture (Both in India and Abroad).
19. The tenure for the Chairman of National Financial Reporting Authority is 1 year. @canotes
20. Any Dividend declared shall be transferred to a separate bank account with in 5 days.
Join @canotes for Quick Notes & Authentic Updates
1. As part of disqualification, A Relative of an Auditor Shall not hold shares in the Company for more than Rs.1 Lakh value. Important Point is, Rs.1 Lakh shall be Face Value, but not Market Value.
2. An Auditor shall not provide Actuarial or Investment Banking Services to his Company (Sec 144).
3. First Auditor shall be appointed by BOD within 30 days from Company Registration. In case of Government Company, by CAAG within 60 days.
4. At Every First AGM, Company shall appoint an Auditor (Individual or Firm), who shall hold office till conclusion of 6th AGM of the Co.
5. In case of Govt Companies, Subsequent Auditor shall be appointed with in 180 days from close of FY. He shall hold office upto next AGM only. @canotes
6. Normal Casual Vacancy is filled by BOD with in 30 days. However, vacancy due to Resignation of Auditor shall be filled at Shareholders Meeting only.
7. Auditor Resigning should file his reasons in 'Form ADT-3', to Company and ROC.
8. Listed Companies cannot appoint an Individual Auditor for more than one term of 5 Consecutive years. For Firms, its two consecutive years.
9. First Auditor Remuneration is fixed by BOD. Subsequent Auditors, at AGM. @canotes
10. Auditor can be removed from office before their term, only through Special Resolution and approval of CG in Form ADT-2.
11. Audit Ceiling limit is 20 Companies per person. This 20 shall not include Private Companies having less 100 crore capital, small companies, OPC.
12. Auditor of a Holding Company shall have right to access books of SC. Join t.me/canotes
13. On encountering any fraud, Auditor shall first give notice to BOD or AC, with in 2 days. In case no reply with in 45 days, same shall be sent to CG with in the next 15 days.
14. If a Charge is not registered with in 300 days, the ROC shall accept it only after CG condones the delay. Join @canotes
15. Register of Loans shall be maintained in 'Form MBP 2'. Entries shall be made with in 7 days from event.
16. A Company can give a loan or guarantee exceeding the limit of 60% of capital, through a Special Resolution. @canotes
17. Cost Audit Rules are not applicable for companies engaged in generation of electricity for captive consumption (commercial use).
18. CA, 2013 mandates every Listed, unlisted public and private limited companies to prepare consolidated financial statements which are having subsidiary companies as defined under Section 2(8 7) of the Companies Act, 2013, which includes Associate Company and Joint Venture (Both in India and Abroad).
19. The tenure for the Chairman of National Financial Reporting Authority is 1 year. @canotes
20. Any Dividend declared shall be transferred to a separate bank account with in 5 days.
Join @canotes for Quick Notes & Authentic Updates