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What is the duty of Statutory Auditor for Compliance with Accounting Standards?

April 26, 2017Accounting Auditor compliance duty Standards state board of accountancy statutory wirc work accountants works accountants

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What is the duty of Statutory Auditor for Compliance with Accounting Standards?

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Section 211(3A) of Companies Act, 1956 provides that every profit and loss account and balance sheet of the company shall comply with the accounting standards. The statutory auditors are required to make qualification in their report in case any item is treated differently from the prescribed Accounting Standard. However, while qualifying, they should consider the materiality of the relevant item. In addition to this Section 227(3)(d) of Companies Act, 1956 requires an auditor to report whether, in his opinion, the profit and loss account and balance sheet are complied with the accounting standards referred to in Section 211(3C) of Companies Act, 1956.