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Auditors Qualification

Amisha (Asst. Company Secretary) (205 Points)

13 August 2010

Dear All

Want to know that Suppose Audit report is finalised and Autitors have not given any qualification in the Main Audit Report, but they have given qualification in Annexure to Audit Report i.e. CARO

so question is whether Directors shouldd reply in the directors report for that qualifications..as per section 217 of Companies Act

Thanks & Regards

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5 Replies

(Guest)

Ya, I think they shall required to report on that qualification in their report

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Amisha (Asst. Company Secretary) (205 Points)
Replied 13 August 2010

Thanks but u think or u r sure ?

Best Regards

CA.G.Muguntha Narayanan (Internal Auditor at TVS Motors) (2195 Points)
Replied 13 August 2010

Dear Amisha,

In both the cases, report of the directors is required in sec.217.

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 13 August 2010

Hi,

There is no doubt…explanation from BOD regarding qualification raised by Statutory Auditors is inevitable through Directors’ Report as desired by section 217. Reason being CARO is an inseparable part of Auditors’ Report.

Thanks