The amendments to the Indian Companies Act 2013 has ensured new responsibilities and powers in appointment and compliance by the auditors. The basic rule that has come to power is the minimum term of five years in office with approval by the members at an annual general meeting. All the auditors who are working presently can continue to complete the tenure as per the general body decision. All work recommendations will be made by the committee in case amendments will have to be made.
Most companies follow the procedure of rotating the auditors every year. And the audit firm itself can be changed as per company needs. There's no restriction in having the auditors rotated. All auditors are required to comply with the process standards. They also have the privilege to make records of all the subdivisions and subsidiaries of the company. Auditors can work with any forms of business entities.
Many of the skilled auditors of private companies assure the proper formulation of perfect accounting rules to verify the economic status of the business. They verify the accuracy in the company's financial records and ensure the legal certainty of all operational procedures. As in the case o a private company, they are liable to core resources such as revenue officers and the company shareholders. Also, there should be proper communication on the declarations and document dispatches, financial statements to shareholders at appropriate times.
Off late there has been a reduction in case of overhead expenses by a business for better financial planning and enterprise management. Hence it is good to have the best auditors for your company who would ensure taking your profit scales to sky level. Most auditors are well trained for such scenarios for maximizing profits. Their specific aim is to ensure the real benefits are reaped through the audit process. Within thirty days of finding fraudulent activities, auditors are expected to report the same to the Central Government. If this is not done, then auditors themselves will be liable for the fining process.
Having a clear audit plan helps to fully ascertain the business of the company being audited and the operating environment. Audit planning also assures that a proper process is established and identify the core audit risks within the business. This would act as a lead to auditors for ensuring proper assessment is done.