Company Auditor can’t escape himself from any penal under Companies Act for contravening any of his duties under sector 147 of the Companies Act, 2013

Company Auditor can’t escape himself from any penal under Companies Act for contravening any of his duties under sector 147 of the Companies Act, 2013

                     

 Under Section 147 of Companies Act 2013 Company Auditor shall be punishable for contravening any of his duties and the penalties are described below:

1.       Company Auditor may require to refund Audit Fees

2.       Require to pay for any damages to company or statutory authority or to any other person who suffers loss arising from misleading Financial Statements.

3.       May required to pay fine from ₹ 25000 to ₹ 5 Lakhs.

Audit

Apart from above penalties there are more penalties for Company Auditor if contravened any of his duties with an intension to deceive or mislead company or its shareholder or any of its creditor or Tax Authorities interested in the company then the company auditor can also be punishable with an imprisonment upto one year and with a minimum fine of ₹ 1 lakh and which mat extend upto ₹ 25 Lakhs.

 Further where in case of audit of the Company being conducted by an audit firm and if it is being proved that the Partner or partners of the audit firm has/have been acted in a fraudulent manner or abetted or colluded in any fraud in relation to the company or company’s director or its officers then the company auditor shall be punishable in following manner:-

• Company Auditor shall be punishable for an imprisonment not less than 6 month and may be extended up to 10 Years and
• Fine for an amount ranging from one to three times of amount involved in the fraud.