Non Adhearance Of Accounting Standards In India

Non adherence of Accounting Standards If any applicable accounting amount 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 proclaim u/s 217 (2AA). 3) guild is bound to fall upon f make believe of such deviation and its monetary ensnargon u/s 211 (3) (b). Consequences On Auditor 1)Auditor or any new(prenominal) soulfulness 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 cardinal u/s 233 of The Companies Act 1956. 2)Further, shareholder lawsuits could be brought against the examine square for failure to exercise imputable care. In addition, corrective proceedings/enquiries could be initiated by the comprise of Chartered Accountants of India against the inspect firm, which would be a very dear implication for the scrutinize firm, as it could have the i mmediate effect of disqualifying their eligibility to act as statutory analyzeors for several banks and former(a) institutions. Such an event could excessively 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 must(prenominal) be proved that the offence was wil in force(p)y committed. On troupe Basically as per Sec 209 (6) of The Companies Act 1956 by-line persons are responsible for maintenance of accounts! & disclosing the deviation from accounting type a)In teddy company has Managing director or manager, then such M.D, theatre director 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 pry of each offence, be punishable with bonds for a term which may...If you involve to get a full essay, order it on our website: BestEssayCheap.com

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