Auditing is a regulated process culminating in an opinion on whether financial statements are True and Fair. It requires professional judgment and strict compliance with all Standards on Auditing (SAs).
What is Audit? This is not a model question for a CA IPCC/Intermediate exam! Perhaps this may not be asked for examinations. That does not mean that we do not need an answer.
Propriety or prudence is a term generally associated with expenditure from public money and audit of government departments and government companies. In the context of Companies, though provisions relating to propriety was absent in the Companies Act, 1956, Sections 227 (1A) and 227 (4A) inserted by the Companies Amendment Act, 1956 required the auditors to inquire into and report upon certain specific questions relating to propriety.
A One Person Company is a Company is a new concept in India ushered in by the Companies Act, 2013 and is similar to ‘Single Member Company’ defined under section 123 of the British Companies Act, 2006. Section 2(62) of The Indian Companies Act 2013 defines a “One Person Company” means a company which has only one person as a member;
Companies Act 2013 is being looked upon as a harsh, draconian legislation which offers a crown of thorns in the form of penalties and a spell in hell in the form of imprisonment for both the officers and auditors of companies alike. Here what is being attempted is to project an ambiguity relating to the Auditors opinion & True and Fair view .
