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Rohit VisputeRohit Vispute asked 12 months ago

Sir, If any company has not created capital redemption reserve after buyback of preference shares, which is voilation of sec 69 of Companies Act, 2013.   Company has done 4 buybacks. And has not created CRR in any year.   The auditor realised this mistake in 5th year Now there are insufficient reserves with company to create CRR   Auditor remains silent and not informed to even company also   Is it a professional misconduct?   If yes, what are the penalty or punishment to auditor in this case ?

1 Answers
RaviRavi Staff answered 12 months ago

 
yes its professional misconduct 
 
he should have discussed with management as per sa 250 and reported accordingly
 
penalty upto 5,00,000
 
and permanent removal is also possible

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