Non Adhearance Of Accounting Standards In India

Non adherence of Accounting Standards If any applicable accounting beat is not followed 1)Auditor is bound by Sec 227 (3) (d) to undo much(prenominal) non-compliance. 2)Director to state such non compliance in director’s notify u/s 217 (2AA). 3) guild is bound to put out f influence of such deviation and its monetary ensn be u/s 211 (3) (b). Consequences On Auditor 1)Auditor or any new(prenominal) somebody who signs the report or signs or au thuslyticates the document, shall, if the default is willful, be punishable with fine which may contain to ten thousand u/s 233 of The Companies Act 1956. 2)Further, shareholder lawsuits could be brought against the analyse plastered for failure to exercise imputable care. In addition, corrective proceedings/enquiries could be initiated by the comprise of Chartered Accountants of India against the examine firm, which would be a very dear implication for the scrutinise firm, as it could have the immediate ef fect of disqualifying their eligibility to act as statutory auditors for several banks and former(a) institutions. Such an event could besides result in break of serve or debarment of the audit firm if the ICAI concludes that there were serious lapses on the audit firm’s part.

On Director 1)Punishments for violations of arm 217 (6) of the Companies Act, are a maximum of Rs 20,000, or maximum custody of six months. Plus, it essential be proved that the offence was wil in force(p)y committed. On bon ton Basically as per Sec 209 (6) of The Companies Act 1956 by-line persons are responsible for ma intenance of accounts & disclosing the devia! tion from accounting type a)In exercise company has Managing director or manager, then such M.D, passenger vehicle and concerned employees b)In any other case, every director of the company. As per Section 211 (7) & 211 (8) of The Companies Act 1956 in case the person fails to report such deviation willfully “He shall, in watch over of each offence, be punishable with bonds for a term which may...If you motive to get a full essay, order it on our website: BestEssayCheap.com

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