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Statutory audit vs special audit

rajiv gupta (partner) (25 Points)

25 January 2016

Financial year ended. Statutory Audit not yet completed. Can a Special Audit be ordered before the Statutory Auditor submits his report within the time limit prescribed under law.

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RAHUL (Student CA Final ) (377 Points)
Replied 27 January 2016

There is no prescribed time limit as to when a special audit can ordered. A special audit is generally ordered by the Central Government in certain cases. The auditor may or may not be the company's statutory auditor. And the report is to be furnished only to the government.

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rajiv gupta (partner) (25 Points)
Replied 27 January 2016

Sir,

Thanks for your reply but my question is that -

a) Statutory Audoit has not been completed of a particular financial year say FY 2012-13.

b) As the Statutory Audit has not been completed, no report has been prepared, no balamce sheet, profit and loss a/c etc has been prepared.

c) In such an event can a special audit be ordered.

RAHUL (Student CA Final ) (377 Points)
Replied 27 January 2016

Special Audit corressponds to Section 233A of Companies Act, 1956. The said section is no longer in force. There seems to be no corressponding section/ provision for the same in Companies Act, 2013. Hence, technically speaking, in my opinion, currently there can't be authorised a special audit.

And for the period 2012-13, section 233A doesn't require the books of accounts to be audited in order to commence special audit. Hence, special audit can be done even if statutory audit is not completed.

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