What are the powers of auditors?

Auditing and Assurance Revision Questions and Answers

Answer:

i. Right to access to books, etc.- The auditor of a company, at all times, has the right of access the books of accounts and voucher of the company whether kept at the head office or elsewhere and he is entitled to obtain such information and explanations as he thinks necessary, for the performance of his duties as auditor.
ii. Right to require information and explanation from officers:
This right of the auditor to obtain such information and explanation as he may think necessary for the performance of his duties as auditor is wide and important power. In the absence of such power, the auditor would not be able to obtain details of amount collected the directors etc. from any other company, firm or person as well as of as of any benefits in kind derived the directors from the company, which may not be known from examination of the books. It is for the auditor to decide the matters in respect of which information and explanation 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 that he could not obtain all the information and explanations he had required or considered necessary for the performance of his duties as auditors.
iii. 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 member are entitled to receive and to be heard at any part of the business of the meeting which concerns them as auditors. The right of the auditor to attend any general meeting and to be head there is only permissive.



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