Briefly explain the power of auditors under the Company Act.

Auditing and Assurance Revision Questions and Answers

Answer:
 Right of access to books of accounts
The auditor of the company, at all times, has the right of access to the books and accounts and voucher of the company whether kept at the head office or elsewhere and he is entitled to obtain from the offers of the company such information and explanations as he thinks necessary, for the performance of his duties as auditor.

 Right to acquire information and explanation from officers
This right of the auditor to obtain from the officer of the company such information and explanations as he may think necessary for the performance of his duties as auditor is a wide and important power. It is for the auditor to decide the matters in respect of which information and explanations are required him. When the auditor is not provided the information required him or is denied access to books; etc. his only remedy would be to report to the members that he could not obtain all the information and explanations he had required or considered necessary for the performance of his duties as auditors.

 Right to attend general meeting
The auditors of a company are entitled to attend any general meeting of the company; also to receive all the notices and other communications relating to the general meetings, which members are entitled to receive and to be heard at any general meeting in any part of the business of the meeting which concerns them as auditors.



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