Urgent Query

This query is : Resolved

CA Gagan Anand (Querist)
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12 April 2010
Hello Friends

This is the question which i was being asked in one of the recent inteviews i faced. Please clarify that what would be the most appropriate answer to it.

Question was
Why do the companies required to have their accounts audited by an Auditor ?
Which Section or Provision of the Companies Act 1956 puts a liability on the Comapnies to have Statutory Audits ?

Your valuable comments are welcome...

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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13 April 2010 sec 211 of company act require audit report attached with balance sheet.

hence require Statutory Audits

CA Gagan Anand

CA Gagan Anand (Querist)
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14 April 2010 Thanks for your reply sir..
But i guess it is section 216 which requires auditor's report to be annexed with balance sheet.

But my question is that is there any particular section which directly states that a company is required to have a statutory audit..?

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CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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15 April 2010 YES, SEC 216,

NO IDEA FOR SPECIFIC SECTION,

OTHER EXPERTS OPINION SOLICITED