COMPANY AUDIT

BOOKS OF ACCOUNTS AS PER COMPANIES

ACT
SYLLABUS

• Qualification, Disqualification, Appointment, Removal, Remuneration of Auditors. • Audit

Ceiling-Status, Power, Duties and Liabilities of auditors. • Branch Audit-Joint Audit- Special
Audit. • Maintenance of Books of Account –Related Party Disclosures- Segment Reporting. •
Divisible Profit, Dividend and Depreciation (Companies Act, Standards on Accounting, Legal
Decisions and Auditor’s Responsibility). • Representations by Management-Contents of
Annual Report (A Brief Idea).

• •Definition-Distinction between Report and Certificate- Types of Reports/Opinion

 BOOKS OF ACCOUNTS AS PER COMPANIES
ACT 2013

Section 128(1) creates an obligation on the company that every company shall prepare
and keep following documents at its registered office which gives a true and fair view of the
state of affairs of the company:
• books of accounts and
• Other relevant books and papers and
• financial statements for every financial year (FY)
BOOKS OF ACCOUNTS 2(13)

 Transaction related to sum of money received and spent by a company

and nature of transaction in relation to such receipt and expenditure.
 Sale and purchase of goods and services.
 Assets and Liabilities of the company.
 Items of cost.
NATURE OF TRANSACTION TO BE RECORDED IN
BOOKS OF ACCOUNTS
PROPER BOOKS OF ACCOUNTS

Every company shall keep proper books of accounts. This Clause specifies the main
features of proper books of accounts:
 Maintain the books of accounts as per sub section 2(13)
 All cash flow should be disclosed
 Accrual Basic
 True and fair view of the state of affair of the company
BRANCH ACCOUNTS

For Local Branches

• Proper books of accounts relating to Branch transaction shall be kept at Branch.
• Proper Summarized return shall be sent periodically to the Registered office, or other place
where books are kept.
For Foreign Branches
Summarized returns of the Books of Accounts kept and maintained outside India shall be sent to
the Registered office at the quarterly intervals, which shall be kept and maintained at the
registered office, and kept open to Directors for inspection.
PLACE OF KEEPING BOOKS OF ACCOUNTS AS
PER COMPANIES ACT

Book of Accounts
Registered Office

If not keep in Registered Office

Intimation of such change to the Registrar of Company within the 7
days.
Any other place in India as board of directors may decide.
The notice regarding address at which books of accounts may be
kept shall be in Form AOC-5
MAINTENANCE OF BOOKS OF ACCOUNT IN
ELECTRONIC FORM
PERIOD OF MAINTENANCE OF BOOKS OF
ACCOUNTS
• Every company is required to maintain
books of accounts for 8 financial years.
However, in case an investigation has
been ordered against the company,
central government may extend such
period.
PERSON RESPONSIBLE FOR KEEPING THE
BOOKS OF ACCOUNTS
• Managing Director.
• Whole Time Director, in charge of Finance.
• Chief Financial Officer.
• Any other person charged by Board of Directors.
PENALTY

• Any non-compliance with respect to

provisions of Books of Accounts by
managing director, the whole-time director in
charge of finance, the Chief Financial Officer
or any other person then such person of the
company shall be punishable with:

1. imprisonment, which may extend to

one year or

2. fine, which shall not be less than INR

50,000 but shall not exceed INR 5,00,000
ANNUAL GENERAL MEETING
HTTPS://WWW.YOUTUBE.COM/WATCH?TIME_CONTINUE=575&V=ID1AUOVWUN8&FEAT
URE=EMB_LOGO
Annual General meeting of tata steel
https://www.youtube.com/watch?time_continue=575&v=ID1aUo
vwUn8&feature=emb_logo
https://www.youtube.com/watch?v=h_UWqeSmgHA
https://www.youtube.com/watch?v=zgA5Shq9yuI