Certified Management Accountant is a certification credential in financial management and in various accounting fields of management. The certification indicates that the person has knowledge within various areas of monetary planning, professional ethics and decision support. CMA deals with strategic management and financial accounting. CMA is a recognized credential globally with a special specialisation in finance and management accounting, unlike other accounting certifications.
Chartered Accountants are professionals that affect work on almost every topic of finance like Taxation, Auditing, and Business Economics. CA Intermediate is the 2nd stage of the 3-level ICAI Chartered Accountancy course. It consists of two groups of 4 subjects each. A student can register for the ICAI CA Intermediate course after clearing the CA Foundation exam.
An auditor is a trained person who reviews, checks, and verifies the accuracy and reality of monetary records maintained by companies. These individuals also help companies guarantee that they control with Indian imposition laws and protect businesses from fraud.
The Companies Act, 2013 and various laws challenge the appointment of an auditor. The Companies Act, 2013 specifies the rights and duties of an auditor. Let us learn about the power and duties of an auditor.
Power and Duties of an Auditor
Every auditor has a right of access to the books of account and vouchers of the company being audited at all times, whether they’re at the listed office of the company or at any other place.
Every auditor of a company can look at the records and transactions of the company if they’re important for the objective in relation to the consolidation of the financial statements.
An auditor has a right to receive notice of any general meeting which they can attend themself or through an authorized representative. They can also raise any concerns in the meeting.
An auditor also has a right to demand information and explanation regarding the matters which are necessary for the performance of his duties. He needs to know whether sales that simply represent a book entry are prejudicial to the interests of the company.
Remuneration of the Auditors
The company fixes the amount of remuneration of the auditor before the appointment of the auditor by the Board of Directors. The remuneration is paid besides the fees payable to him.
It includes any expenditures incurred by the auditor in relation to the audit and any other services being procured by them.
This remuneration doesn’t include any amount paid to them for the rendering of any services other than the services as pre-defined by the board of directors and the audio
Qualifications of the Auditor
A person is eligible for the appointment as an auditor only if he’s a Chartered Accountant.
A person can be appointed as an auditor only when most of its partners are Chartered Accountants practising in India.
Disqualifications of the Auditor
The following can not be appointed as an auditor of a company under the Companies Act, 2013.
A jobholder or officer of the company.
A person who’s in employment or in a relationship with an officer or retainer of the company.
A person whose relative or partner, holds any security or interest in the company. It includes its holding or associate company, or any other subsidiary of such holding company, in the amount that does not exceed Rs. 1 lac.
A person whose relative or partner, is obliged to the company, or its holding or associate company or another subsidiary of such holding company, in the amount that does not exceed Rs. 5 lacs.
A person whose relative or partner, has given any guarantee or handed any security regarding the obligation of any third party to the company, or its holding or associate company or another subsidiary holding company, in the amount that does not exceed Rs. 1 lac.
A person or an entity that has a business relationship, directly or indirectly with the company or its holding, subsidiary or associate company or another subsidiary of such holding company.
A person who is the relative of a director or any other important member of the leadership of the company.
A person convicted by the previous auditor for an offence regarding any form of fraud.
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