Accounts, Audit &Auditors Books of Accounts; Financial Statements; National Financial Reporting Authority; Auditors-Appointment, Resignation and Procedure relating to Removal, Qualification and Disqualification; Rights, Duties and Liabilities; Audit and Auditor's Report; Internal Audit; Cost Audit

Before you buy a flat you ask for the builder's track record, and before you lend money to a business you ask for its balance sheet. But a balance sheet is only a claim made by the people running the business. Who checks it? The Companies Act 2013 answers with a chain: the company must keep proper books, prepare financial statements that give a true and fair view, and have them examined by an independent auditor who reports to the members, not to the management. This topic follows that chain link by link.

In two minutes

A company must keep books on accrual basis and double entry, prepare financial statements that give a true and fair view, have them approved by the Board and audited by an independent chartered accountant appointed for five-year terms, and file them with the Registrar; the auditor has wide rights, strict duties and personal liability.

The rest of this chapter

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