Company Audit

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    Introduction

    Company Audit means a type of audit mandated by the law or a statute to make sure that the book of accounts is true and fair which is presented to the public and regulators. If the business meets certain criteria, then the statutory audit is mandatory. Generally, statutory audit means financial audit.

    What is the Purpose of a Company Audit?

    All public and private limited corporations are required by law (or stature) to conduct a statutory audit of their financial papers and filings, according to the Companies Act 2013 and Companies (Audit and Auditors) Rules, 2014. In fact, in the case of the statutory audit, the business turnover and nature of the business of public and private limited firms make no difference.

    Due Date for audit under companies Act

    The audit report must be attached to Form AOC-4 (financial statement) and filed with the ROC within 30 days of the AGM. The form MGT-7 (annual return of the company) must be filed within 60 days of the AGM. The due date for holding AGM is before or on 30 September every year.

    Consequences of not filing ROC on time

    Form MGT-7

    In cases of non filing of Annual return of a company, both Company and Every Director are liable for the Penalty. The provisions of penalty states that the both the company and its every officer who is in default shall be liable to a penalty of Rs. 50,000/- and in case of continuing failure, with further penalty of Rs. 100/- for each day during which such failure continues, subject to a maximum of Rs. 5,00,000/-

    Form AOC-4

    In case of failure, a company and its directors are liable for penalty. A fine of Rs. 1,000 per day is levied which can be maximum up to Rs. 10,00,000. The company’s CFO and the Managing Director (if any), and in absence of them any other director who has been provided with the responsibility to comply with the provisions of the section related to Form AOC-4 and, in absence of such a director all the directors in the company are accountable to pay a charge of Rs. 1,00,000.