A Special Audit is an audit conducted under specific circumstances, often directed by the Central Government rather than the shareholders.
Note: The Companies Act, 2013 replaced the specific "Special Audit" section (Section 233A of the 1956 Act) with broader investigation powers.
Section 210 & 213: Empower the Central Government to order an investigation into the affairs of a company if it is in the public interest or if there are circumstances suggesting fraud or mismanagement.
Section 142: Deals with the remuneration of auditors, which applies if a government-appointed auditor is used.
Triggers: It may be ordered if the government believes that the affairs of the company are not being managed according to sound business principles or prudent commercial practices, or if the company's financial position is likely to jeopardize the interests of trade, industry, or the public.
Powers: The special auditor has the same powers as a statutory auditor, but their report is submitted directly to the Central Government for potential further action.
No comments:
Post a Comment