18 December 2009
Can the directors be held responsible for non compliance of CARO ? If yes, how ? What is the liability of directors for non compliance of accounting standards ?
19 December 2009
The directors can be responsible.
The auditor can qualify the accounts and give adverse remarks / qualifications in the auditors report. The Directors have to reply to the qualifications in their Directors Report which is a public document and also respond to the shareholders at the AGM.
Generally, qualifications / adverse remarks also catch the attention of all regulators who can take necessary actions against the directors.
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