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CS Executive · Company Law and Practice · Accounts and Auditors

Sunrise Textiles Ltd, a private company in Surat, has its books kept partly at a godown in Vapi, away from the registered office. The statutory auditor wants to examine the vouchers kept there. Under Section 143(1), what is the auditor's position?

The auditor can access the books and vouchers at all times, wherever they are kept. Section 143(1) says the right applies whether the records are at the registered office or at any other place, so the Vapi godown is covered and no Board approval is required.

  1. AThe auditor may access the books and vouchers at any place, at all timesCorrect
  2. BThe auditor may inspect only books kept at the registered office
  3. CThe auditor needs prior Board approval for books kept elsewhere
  4. DThe auditor may access them only during the annual audit period

Explanation

Section 143(1) gives every auditor a right of access at all times to the books of account and vouchers, whether kept at the registered office or at any other place. The location of the godown therefore does not limit the right. Limiting access to the registered office is wrong because the section expressly covers other places.

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