Section 205: Auditor’s report

205. Auditor’s report (1) The auditor of a company shall make a report to the shareholders on the financial statements which have been audited. (2) The auditor’s report shall state— (a) the work done by the auditor; (b) the scope and limitations of the audit; (c) the existence of any relationship (other than that of auditor) which the auditor has with, or any interests which the auditor has in, the company or any of its subsidiaries, other than dealings with the company in the ordinary course of business not involving indebtedness to the company or a related company in an amount exceeding 10,000 rupees; (d) whether the auditor has obtained all information and explanations that the auditor has required; (e) whether, in the auditor’s opinion, as far as it appears from an examination, proper accounting records have been kept by the company; (f) whether, in the auditor’s opinion, the financial statements and any group financial statements give a true and fair view of the matters to which they relate, and where they do not, the respects in which they fail to do so and whether the financial statements have been prepared in accordance with the International Accounting Standards; and (g) whether, in the auditor’s opinion, the financial statements and any group financial statements comply with section 211 or 214, as the case may be, and where they do not, the respects in which they fail to do so. (2A) (a) Where an auditor practising on his own account makes the report under subsection (1), he shall, under his signature, specify— (i) his name; and (ii) beside his name, the words “Licensed by FRC”. C35 – 127 [Issue 4] Companies Act (b) Where an audit firm makes the report under subsection (1), its signing partner shall, under his signature, specify— (i) his name; (ii) beside his name, the words “Licensed by FRC”; and (iii) the name of the audit firm. (c) In paragraphs (a) and (b), “FRC” means the Financial Reporting Council established under the Financial Reporting Act. (3) The audit of the financial statements shall, in the case of a public company or a private company other than a small private company, be carried out in accordance with the International Standards on Auditing, and it shall be sufficient compliance with this section if the auditor’s report complies with the International Standards on Auditing. [S. 205 amended by s. 8 (c) of Act 20 of 2011 w.e.f. 16 July 2011.]