Whether secretarial auditor has to verify list of related parties disclosed in financial statements or he can simply rely on the list verified by the statutory auditors? 




Loading

Whether secretarial auditor has to verify list of related parties disclosed  in financial statements or he can simply  rely on the list verified by the statutory auditors? 

 

 

Here is a case where in :

 

The company did not disclose one company as related party in financial statements for 2014-15, 2015-16 and 2016-17. ROC issued show cause notice to PCS. PCS took the plea that he has relied on the report of statutory auditors and hence non-compliance was not reported. However, ROC did not agree and levied maximum penalty @ Rs.50,000 per year on the PCS vide order dated 28.42023:

The copy of order is as under : 

 

Whether secretarial auditor has to verify list of related parties disclosed in financial statements or he can simply rely on the list verified by the statutory auditors?




Menu