30 April 2009
Yes Mamta you are right. There is nothing specifically mention in section 227 as mention by Mr. B. Sri.
His answer is not up to the mark.
In fact, in Companies Act there is no specific provision about signing of Balance Sheet by Auditor.
INTERPRETATION OF SECTION-227(2) --------------------------------
But if you check the lauguage of Section-227(2) which is as follows:
"The auditor make a report to the members of the company on the accounts examined by him, and on every Balance Sheet......"
In the first 2 lines of section-227(2) the word "Examined" is used. The use of this word implies that Auditor needs to check the Balance Sheet and also sign it.
Only after signing the examined paper examination of anything is complete. The above is also supported by the language of Audit Report...Read carefully any sample Audit Report...
30 April 2009
In Section 227(2) (reproduced from act) Laid before the company in general meeting during his tenure of office, and report shall state wheter, in his opinion and to the best of his information and according to the explanations given to him, the said accounts give the information required by this act in the manner so required and give a true and fair view (i) in the case of balance sheet, of the state of the company's affairs as at the end of its financial year; and (ii) in the case of the profit and loss account, of the profit or loss for its financial year.
The auditor cannot go to each shareholder and inform the above as a concurence for the same he will sign and send the report.
02 May 2009
but this doesn't mean that the auditor should sign the balance sheet. because annual accounts were prepared by board of directors of the company it is not necessary that the auditor should examine the balance sheet
CAclubindia
