21 April 2009
Is it compulsary for the statutory auditors of a public Co. to attend the audit committee meetings for all the items under any Act, regulations or guidelines ? Pls. give the references also.
If compulsary, what are the implications to the auditor and the Company if not attended?
21 April 2009
As far as a Listed Company is concerned, acc to companies act, it is stated that the Internal as well as the statutory auditors shall attend the ACM under Sec 292A of the Companies Act,1956.
Sec 292A says:
If a default is made in complying with the provisions of this section, the company, and every officer who is in default, shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to fifty thousand rupees, or with both.]
so if the Statutory auditors are not invited to the meeting and as a result tof which they are unable to attend , the auditors can not be held responsible as 'officer in default' in this case?
CAclubindia
