Select Your Location
A public company has a separate legal entity that permits its shares to be traded on the market for the public to take a position in it according to section 2(71) of the Companies Act, 2013. It is compulsory for a Public Limited Company to show its financial position, i.e., balance sheet and estimation, to the public to maintain transparency and neutrality. Therefore, according to the Companies Act, a public limited company must get its accounts audited by the Chartered Accountant (CA) or persons eligible to act as auditors. Auditing the public limited’s primary objective is determining whether a Company is providing the correct representation of its financial state of affairs and complying with the Companies Act. It can be determined by examining the information provided to the auditor, such as books of account, statements of bank account, and financial statements.
A public limited company must go through an audit process for each financial year. It does not matter what nature of business public limited conducts or irrespective of turnover; the public companies must get their Books audited for each financial year.
The companies must get their annual accounts audited annually by independent auditors according to Section 143 of the Companies Act 2013. In the audit of a Public Limited, the auditors examine the company’s books of accounts, company transactions during the year, and every other relevant document.
During the audit of a public limited, verify that the financial statements are free from material misstatements and are fairly presented.
The opinions prepared by the auditors on the financial statements are available to the investors and other interested parties.
The main objective of the limited public audit is to provide reasonable assurance to investors, capital market participants, and policymakers so they can invest in the company and take appropriate investment decisions based on Auditor’s Report.
Table of Contents
The persons who can be appointed as an auditor of a public company:
The procedure to conduct an audit of Public Limited is as follows:
A Public Limited Company is a separate legal business entity offering shares to be traded on the stock exchange for the general public as per the companies act. To maintain transparency, a company must present its financial position and status to the general public. The auditor inspects the books of account to ensure that they are accurate. Auditing a private limited company is an annual compliance requirement under the Act and Company Law Rules, 2013.
Also Read:Characteristics of Public Limited CompanyDifference Between Private and Public Limited CompanyHow to Convert a Private Limited Company to Public Limited Company?
Minakshi Bindhani has completed LL.M. with a specialization in Criminal Law from Madhusudan Law University, Cuttack, Odisha. She is more inclined toward legal research and writing and have prior experience in Civil and Criminal litigation and content writing.
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Every assessee in India is obligated to file an income tax return and make the timely payment o...
In the recent past, India has seen burgeoning demand for internet and smartphones. The rapid ri...
The Securities and Exchange Board of India (SEBI), the capital markets regulator, has recommend...
The objective of the enactment of the Prevention of Money-laundering Act, 2002, i.e. PMLA (the...
Tax planning is a continuing effort and a management strategy for ensuring the minimization of...
On 18th May 2023, the Securities Exchange Board of India (SEBI) released a Consultation Paper o...
Are you human?: 7 + 2 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Given the current environment, the virtual audit appears after the time of the pandemic. It conducts almost all aud...
13 Mar, 2023
Internal audits play an essential role in a company's operations and governance. Every Organization has an internal...
14 Feb, 2023
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!