Auditors conducting audit of its accounts till annual accounts are approved by board of directors - Companies Law - Letter : No. 8/13/(215)/65‑CL‑V,

Letter : No. 8/13/(215)/65 ‑ CL ‑ V, dated 29 ‑ 9 ‑ 1965. Subject:- Auditors conducting audit of its accounts till annual accounts are approved by board of directors Section 227(2) casts a duty on the auditor not only to report on the balance sheet and profit and loss account but also on the accounts of the company. There is nothing in section 215 or section 227 which can be construed as prohibiting the auditors from conducting the audit of its accounts till the balance sheet and profit and loss account are approved by the board of directors. Any such prohibition might delay the audit and lead to delay in placing the annual accounts before the company s general meeting as required by section 210. The Company Law Board does not, therefore, consider that there is any contravention of section 215 in a case where the audit of the final accounts is completed before the approval of the balance sheet by the board of directors of the company. In this connection, reference is also drawn to the observations of the Viswanatha Sastri Committee in para 91 of his report.