Tuesday, 18 December 2018

Audits of Branch Accounts.

Audits of Branch Accounts.

Section 228 gives that if a company has offices of branch, every branch office accounts by the auditor's of the company must be audited or the company may appoint another qualified auditor for the purpose. If any company branch outside India, shall be audited the accounts by a qualified person to audit accounts according to that country laws or the company's auditor or a qualified person for appointment as auditor under the Companies act,1956. The branch auditor appointment must be made and fixed his renumeration, in general meeting by the company or by the Board of directors if authorized so by the general meeting, in consultation with the auditor of the company. Where the  branch account have been audited by a person other than the  auditor of the company's the company auditor shall be entitled the branch to visit if he considers it important for his duties performance as auditor and shall have a right to access at all times to the accounts and the books and maintained the vouchers of the company at the branch office.

Provided that in the banking company case have branch office outside of India, it shall be  sufficient if the  allowed auditor access to copies such and form extracts, the accounts and the books of the branch have been transmitted of the company to the principal office in India.

Where general meeting company decides  to have branch office accounts otherwise by the auditor's of the company, the company in that meeting shall for those accounts appoint a person who is as aforesaid either qualified or an duly qualified to act as the accounts auditor of branch office in respect of that country with the law or authorize the board of directors such a person to appoint in such consultation with the auditor of the company's.

The appointed person to audit the branch office accounts shall have the same powers and  duties in accordance of  the audit branch as the auditor's of the company. He shall submit to the company auditor's hsi report.

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