Page 56 - DCOM204_AUDITING_THEORY

Auditing Theory Pooja, Lovely Professional University

Notes Unit 4: Section 226, 314 and Code of Ethics

CONTENTS
Objectives
Introduction

4.1 Qualifications and Disqualifications of Auditors [Section 226]
4.2 Central Government Act Section 314 in the Companies Act, 1956
4.2.1 Meaning
4.2.2 Approval of Shareholders in General Meeting
4.2.3 Prior Approval of Shareholders and Central Government
4.2.4 Vacation of Office

4.2.5 Circumstances under which a Special Resolution is required to be Passed
4.2.6 Consent of members may be taken subsequently
4.2.7 Increase in the Remuneration of a Person Appointed in the Office or Place
of Profit
4.2.8 Circumstances u/s 314(1) under which Special Resolution is not Applicable
4.2.9 Circumstances where section 314(1B) is Applicable
4.2.10 Procedure for Appointment on Office or Place of Profit, where CG Approval
required
4.2.11 Documents and Particulars to be Furnished in the Application to the Central
Government
4.2.12 Declaration by a Person who is Appointed to an Office or Place of Profit
4.2.13 Consequences on Non-complying with the Provisions of Section 314
4.2.14 Conclusion

4.3 Auditor’s Code of Ethics
4.3.1 Objectives
4.3.2 Fundamental Principles
4.3.3 Purpose of Code of Ethics
4.3.4 Importance of the Code of Ethics
4.3.5 Applicability and Enforcement

4.3.6 Rules of Conduct
4.3.7 Auditor Violation and Disciplinary Process
4.4 Summary
4.5 Keywords

4.6 Review Questions
4.7 Further Readings

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