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Auditor Appointment
06-07-2009, 10:45 AM
Post: #1
Auditor Appointment
I want to know that if small company appoints auditor

and did not audit there financial statements.

then who is responsible for that....

is there is any penalty on a company or auditors?
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06-07-2009, 08:44 PM
Post: #2
 
Please be specific in your question,However,
If Company has appointed auditor but did not conduct audit then auditor shall in non of the case be liable if the default does not relate to any of the disqualification specified under section 254 of the company ordinance 1984.
The following Penalities may be imposed on the company under different sections of the ordinance( if it is default on company's part)

1. If under section 244, company has issued balance sheet without annexing thereto the Auditor's Report then company & every officer shall be liable to fine up to Rs.5,000.

2. If u/s 255 , Clause No. 16.7, if any officer refuses or fails to allow auditor to access books or paper or does not give required information to the auditor then such officer shall be liable to fine upto Rs. 5000 & further fine of Rs. 100 for each day of default.

3. If default relates to Section 252 - 254 or 256 - 258 (on the part of the company) i.e regarding Appointment, Remuneration,Removal, Qualification/Disqualfication etc. then company & every officer will be fined upto Rs. 2000.

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06-12-2009, 05:56 PM
Post: #3
 
what is the penalty over the auditors...

for the private company, they can appoint individual suppose M com ICMA inter, CA inter, ACCA etc

and if the audit is not performed (because) company do not want to do

than what is the penalty over company and the auditor?
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06-13-2009, 06:23 AM
Post: #4
 
This question is seems to be illogical that company does not want the audit to be conducted, why any company would do so ?
However the answer is the same as discussed in point no. 2 of the first reply,
With regards to your second question, The auditor can never be a CA inter or CMA Inter, Auditor should posses such qualification as discussed in section 254 of the ordinance. however,if a company appoints such a person as an auditor who is subject to any disqualification or unable to act as an auditor due to being unqualified or unwilling to act as such, acts as auditor of a company shall be liable to fine which may extend to twenty-five thousand rupees.
Furthermore, any such appointment shall be void and SECP may appoint the auditor on the place of such auditor, who has been appointed by the company.



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