If an auditor of the company contravene in his duties as a auditor like audit reporting, auditors appointment, Perpetration of frauds in the entity the punishments are as under:
As per sec 147 of the companies act 2013 the punishment for contravention of section 139, 143, 144, 145 reads as under:
"If an auditor of a company contravenes any of the provisions of section 139, section 143, section 144 or section 145, the auditor shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees:
Provided that if an auditor has contravened such provisions knowingly or wilfully
with the intention to deceive the company or its shareholders or creditors or tax authorities,
he shall be punishable with imprisonment for a term which may extend to one year and with
fine which shall not be less than one lakh rupees but which may extend to twenty-five lakh
Further he shall also refund the audit remuneration, pay for losses to the company or statutory authorities for any loss arising out of his conduct.
So as a company auditor due care needs to be taken.
Posted 3 years, 7 months ago by Mukesh Jain CA
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