Section 143 of CA 2013 : Section 143: Powers And Duties Of Auditors And Auditing Standards

Explanation using Example

Imagine a scenario where ABC Private Limited is undergoing its annual audit. The auditor, Mr. Smith, is exercising his rights under Section 143 of The Companies Act, 2013. He begins by requesting access to the company's books of account and vouchers, which are kept both at the registered office and at a secondary location.

During his audit, Mr. Smith notices that the company has made several loans and advances on the basis of security. To ensure compliance with Section 143(1)(a), he verifies if these loans are properly secured and whether the terms are in the company's best interest. He also scrutinizes the company's transactions to ensure they are not merely book entries that could be prejudicial to the company's interests, as per Section 143(1)(b).

While examining the financial statements, Mr. Smith finds discrepancies in the cash received from share allotments. H...

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