The function and duties of auditors as per section 115 of the Companies Act, 2063 are as follows:
(1) The auditor shall, addressing the shareholders or the appointing authority, submit to the company his/her report, certifying the balance sheet, profit and loss account and cash flow statement based on the books of account, records and accounts audited him/her.
(2) The audit report shall be prepared in accordance with the prevailing law or in consonance with the audit standards prescribed the competent body; and such report shall state the matters to be set out under this Act, as per necessity.
(3) The audit report as referred to in Sub-section (2) shall also indicate the following matters, inter alia:
(i) Whether such information and explanations have been made available as were required for the completion of audit;
(ii) Whether the books of account as required this Act have been properly maintained the company in a manner to reflect the real affairs of its business;
(iii) Whether the balance sheet, profit and loss account and cash flow statements received have been prepared in compliance with the accounting standards prescribed under the prevailing law and whether such statements are in agreement with the books of account maintained the company;
(iv) Whether, in the opinion of the auditor based on the explanations and information made available in the course of auditing, the present balance sheet properly reflects the financial situation of the company, and the profit and loss account and cash flow statement for the year
ended on the same date properly reflect the profit and loss, cash flow of the company, respectively;
(v) Whether the board of directors or any representative or any employee has acted contrary to law or misappropriated any property of the company or caused any loss or damage to the company or not;
(vi) Whether any accounting fraud has been committed in the company
(vii) Suggestion, if any