At the Annual General Meeting of the Company, a resolution was passed by the entire body of shareholders restricting some of the powers of the statutory auditors. Can powers of the statutory auditors be restricted?

Auditing and Assurance Revision Questions and Answers

Section 114 of the Company Act 2063 provides that an auditor of a company shall have right of access at all office time to the books of account and records of the company. Auditor shall be entitled to require from the offices of the company such information and explanations as he / she may think necessary for the purpose of his audit.
These specific rights have been conferred by the statute on the auditor to enable him to carry out his duties and responsibilities prescribed under the Act, which cannot be restricted or abridged in any manner. Hence any such resolution even if passed by entire body of shareholders is ultra vires and therefore void.
In the case of Newton vs. Birmingham Small Arms Co, it was held that any regulations which preclude the auditors from availing themselves of all the information to which they are entitled under the Companies Act, are inconsistent with the Act.

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