RIGHTS OF AN AUDITOR :-
Following are the important rights of the auditor :
1. Access To Books :-
It is a right of the auditor that at all the times he has to access to the books, accounts and vouchers of the company.
2. Right Of Inspections:-
It is a right of the auditor that can inspect the record of the company at any time. He can visit without any notice and verify the cash or any document.
3. Right Of Information :-
Auditor can demand any information which he needs for audit from the directors and officers. If they refuse to provide then he can report to the members.
4. Access To Branches :-
If the company has some branches, then auditor has a right to check the accounts books and vouchers of the branch. Even the branch account is audited by some other auditor.
5. Receiving Notices :-
It is the right of the auditor to receive the notices relating to the general meetings as these are sent to the shareholders.
6. Right Of Attending The Meeting :-
It is the right of the auditor that he should attend the general meeting of the shareholders. He can explain or make a statement about the accounts there. He can correct if directors gives wrong information in the meeting about the audited accounts.
7. Remuneration :-
It may be fixed by the management. The auditor has right to receive the remuneration of his auditor work.
8. Presentation In Meeting :-
The auditor has the right to attend the meeting and give presentation about the matters relating to accounts.
9. Right Of Correction :-
In case of any mistake the auditor can make correction and issue the revised statement.
10. Seeks Experts Opinion :-
The auditor has right to consult with the experts and other persons to obtain their opinions about the matter related to the business.
IMPORTANT NOTE : It is clear that the rights of an auditor can not be limited either by the articles of association or by the resolution of the members.
DUTIES OF AN AUDITOR :-
Following are the important duties of an auditor :
1. To Certify The statutory Report :-
It is the duty of the auditor that he should certify that statutory report is correct regarding the shares allotted cash received and receipts and payment on capital account of the company.
2. To Certify The Performance Of The Company :-
When a company is already carrying the business it issues the prospectus and statements of profit and loss. Dividend paid during the previous years are included also in the prospectus. Such statements and clear position about the dividends paid verified by the auditor.
3. Submission Of Report :-
The auditor of the company has to examine the accounts of the company. He has to report to the shareholders on the accounts. In the general meeting he submits his report regarding the accounts examined by him and every balance sheet and profit and loss account including notes or statements. His report can be inspected by any member of the company. If auditor is not satisfied he may report to the shareholders.
4. Assistance To Advocate General :-
In connection with the prosecution of the directors auditor of the company is bound to provide assistance in investigation to advocate general if his services are required.
5. Duty In Case Of Voluntary Winding :-
In the voluntary winding up, the auditor has to certify the profit and loss account. Balance sheet, assets and liabilities statements to show that company is in a position to pay the liabilities or not.
6. Signature's Duty :-
It is also duty of the auditor that he should sign on the report which is submitted in the annual general meeting of the shareholders.
7. Helps Inspectors :-
The govt. can appoint inspectors to collect the information about matters. It is the legal duty of the auditor that he should help the inspectors and provide true information's.
8. Performance Of Job :-
The auditor is bound to perform all jobs according the terms and conditions of employment. The duties mentioned in agreement can not change.
9. Verify Securities :-
It is the duty of the auditor that he should verify the securities of the company and also check that these are in the safe custody.
10. Verify Assets :-
It is the duty of the auditor that he should verify the existence of assets which are given in balance sheet. If he does not certify then he will be held responsible.
11. Verify The Payments :-
It is the duty of the auditor that payments made by the company are according the articles of association or not. He should also verify that payments are made for the business purpose.
12. Honesty :-
It is the duty of the auditor that he should work honestly and efficiently. He must be confidence about the facts.
NOTE : The statutory duties of the auditor can not be curtailed by the articles of the company by directors or by the resolution.