Mr. Raj, a fellow member of the Institute of Chartered Accountants of Nepal, working as manager of Rahul & Associates, a chartered accountant firm, signed the audit report of Om Ltd. on behalf of Rahul & Associates.

Auditing and Assurance Revision Questions and Answers

Answer:
Signature on Audit Report: Section 116 of the Companies Act, 2063 requires that only a person appointed as the auditor of the company or where a firm is so appointed, the member who has been authorized a decision of the partners of such institution, may sign the auditor‟s report or sign or authenticate any other document of the company required law to be signed or authenticated the auditor. Therefore, Mr. Raj, a fellow member of the Institute and a manager of M/s Ram & Associates., Chartered Accountants, cannot sign on behalf of the firm in view of the specific requirements of the Companies Act, 2063.



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