According to current law, the control of the accounting and balance sheet aspects of a company, company or enterprise rests with special external figures called auditors.
There are specialized and authorized auditing firms which can be consulted for this purpose. Entrusting control of the financial statements to third parties tends to guarantee the highest level of impartiality as regards the verification of compliance with all the company’s tax and financial obligations.
How are the retail audit companies in Delhi chosen?
The appointment of auditors can take place when the company is established, or at a later date.
In the first case, the identity of the persons in charge will be an integral part of the articles of association; in the second, the shareholders’ meeting will implement any proposals (generally by the company’s internal control body), discuss them, put them to a vote and finally decide on them.
Duration and terms of the assignment
The assignment of retail audit companies in India lasts three years, and can be revoked prematurely by the company only in the presence of just cause and always after consultation with the internal control body.
The resignation of the auditors is also foreseen, which must be submitted – unless there are serious and proven reasons – in the right times and ways, such as to allow the company to promptly find a replacement.
Finally, in the event of a decision shared by the two parties, the auditors will have to commit to carrying on their work until the company has found suitable professionals to take their place.
In any case, the conferment of the new assignment cannot take place beyond the time limit of six months from the ratification of the separation.
Characteristics of auditors
Obviously, not everyone can access the performance of the auditing profession: in order to be qualified, in fact, it is essential to be registered in the appropriate professional register, or to be employed at an auditing company registered in the same register.
Furthermore, the auditors must have absolute third party relations with respect to the company they control: they must in fact not take part in strategic and operational meetings, nor have a say in the corporate decisions.
Within certain limits, working relationships are allowed with people inside the company’s organization chart, unless other people (whom the law defines as informed, objective and reasonable) have no reason to believe that such relationships are likely to pollute the serenity of the auditor in carrying out his activity.
Finally, the consideration that the company must pay to the auditors must be fixed and in no way can be subordinated to the value judgment that the auditors will express on the accounting aspect of the company itself.
The auditor’s activity
Basically the auditors have the task of examining the financial statements and inferring their substantial correctness. Not only that: the ordinary and extraordinary accounting must also be sifted through, and any anomaly detected.
Therefore, auditors must be given access to all accounting documents relating to their sphere of interest.
At the end of the review process, the appointees will have to draw up a detailed report, in which all possible critical issues and findings found during the examination must be contained.