1. Report to members of the company on the accounts examined by him
- F: Financial Standards
- A: Accounts
- S: Accounting and Standards
- T: True and Fair View
2. Right to Receive notices and to attend any general meetings (not board meeting)
- Can attend any general meeting except board meeting. (Not restricted to the those at which the accounts audited by him are to be discussed)
- To receive notices and other communication. And to be heard about the matters which concerns him as an auditor. (Sec. 146)
- It is the duty and responsibility of the auditor to attend the general meeting either personally or through an authorized representative (CA). such right is extended only to the meeting of members and not the directors.
- He can bring in the notice of shareholders any new matter which he consequently comes to know after making the audit report.
3. Right to access books of account
- An auditor can access books of account, vouchers whether at the registered office or any other place at all-time whereas according to Section 128 books of accounts can be accessed by BOD at office hours only. (Section 143 (1)).
- He can also access records at branches. Section 143(8) provides that the account of branch offices must be audited by an auditor or any other person appointed under section 139 of this act.
- Auditor of holding company has the right to access books of accounts of subsidiary/associate companies only in case of consolidation of financial statements.
4. To obtain information and clarification:
- Information and he may think necessary and sufficient
- He can decide the matter to which he requires information. Sufficiency is based on auditor’s judgement
- If information is not provided, then he can report to members (qualified/Disclaimer)
5. Right to sign reports:
only the person appointed as auditor has the right to sign the auditor’s report or sign or certify any other document of the company. (section 145). In case of LLP auditor, the partners who are CA can sign (Section 141(20). If not no sign.
6. Right to remuneration:
All rights are statutory rights and cannot be limited by AOA or by any resolution of the meeting. If any company makes any provision against these rights. It is ultra-virus.