Sponsored
    Follow Us:
Sponsored

ANNOUNCEMENT1

APPLICABILITY OF SECTION 143(12) TO FINANCIAL YEARS BEGINNING ON OR AFTER 1ST APRIL 2014

The Council of the Institute of Chartered Accountants of India, at its adjourned 333rd meeting held on 18th June 2014, considered the issue of applicability of the provisions of section 143(12) of the Companies Act 2013 to the financial periods beginning on or after 1st April 2014. In other words, whether the statutory auditor would be required to report pursuant to section 143(12) while carrying out audits of financial statements for the interim periods, such as quarterly or half yearly audits.

The Council of the view that such quarterly/ half yearly audits are not carried out pursuant to the requirements of the Companies Act 2013 (rather to meet the specific requirements of the auditee company, for example, to comply with the listing agreement requirements) as the latter only envisages audit of the annual financial statements.

The Council, accordingly, felt that prima facie, as a corollary, section 143(12) would become applicable only for financial year (and not for a period) 2014-2015 and onwards. The Council is, however, in the process of communicating with the Ministry of Corporate Affairs in this regard.

_________________________
1    This Announcement has been issued by the President ICAI under the authority of the Council of ICAI.

Extract of Section 143(12)

143. Powers and duties of auditors and auditing standards

(12) Notwithstanding anything contained in this section, if an auditor of a company, in the course of the performance of his duties as auditor, has reason to believe that an offence involving fraud is being or has been committed against the company by officers or employees of the company, he shall immediately report the matter to the Central Government within such time and in such manner as may be prescribed.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Ads Free tax News and Updates
Sponsored
Search Post by Date
December 2024
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031