Hello Sir/friends,
If Directors personal Exp. charged to revenue account is it duty of the auditor to report or not?
8 Replies
CourseCart.in
(Mentor at SHAYVIDZ Academy)
(3756 Points)
Replied 21 January 2010
| Originally posted by : kumar | ||
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Hello Sir/friends, If Directors personal Exp. charged to revenue account is it duty of the auditor to report or not? |
 |
Kumar,
offcourse.. it is the auditors duty u/s 227(1A) of companies act...
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 21 January 2010
Ofcoarse, its auditor only draws attention to such things.., whom else u expect to verify the books and report fairly??
Varun.T.K
(CA Final, CS Executive)
(365 Points)
Replied 21 January 2010
Sure, Personal Expenses cannot be charged to company's books of accounts since it is specifically provided in the statute(Companies Act 1956)
Pragya Jha
(Learner)
(40 Points)
Replied 22 January 2010
Hey it is Auditor's duty to review such things in detail nd in case of default he is supposed to Report as per Sec 227(1A)....nd one more thing It vl be treated as default only if it is non contractual....
sairam
(student)
(118 Points)
Replied 30 January 2010
according to companies act the company and its members is not the and one and the same so they cannot charge personal expenses into company books and ofcourse the auditor mainly concentrates on this matter mainly
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