Introduction - 

      A charted Accountant can be appointed as a Company Auditor. A Charted Accountants means a person who is a member of The Institute of Chartered Accountants. A person shall not be qualified for appointment as auditor of the company unless he is a chartered accountant within the meaning of Chartered Accountant Act 1949.
      Section 50, 51 and section 52 of the Reserve Bank of India at deals with the provision Auditor, Appointment, powers and duties of auditors. This provision is inserted by the amendment of 1948 to Section 50 w.e.f. 01/01/1949 and in Section 51 by amendment of 1951 w.e.f. 01/11/1951.

Auditors (Section 50) -

            (1) Not less than two auditors shall be appointed, and their remuneration fixed, by the Central Government. 
            (2) The auditors shall hold office for such term not exceeding one year as the Central Government may fix while appointing them, and shall be eligible for re-appointment.

Appointment of special auditors by the government (Section 51) -

Without prejudice to anything contained in Section 50, the Central Government may at any time appoint the Comptroller and Auditor General to examine and report upon the accounts of the Bank.

Powers and duties of auditors (Section 52)

            (1) Every auditor shall be supplied with a copy of the annual balance sheet, and it shall be his duty to examine the same, together with the accounts and vouchers relating thereto ; and every auditor shall have a list delivered to him of all books kept by the Bank, and shall at all reasonable times have access to the books, accounts and other documents of the Bank, and may, at the expense of the Bank, employ accountants or other persons to assist him in investigating such accounts, and may, in relation to such accounts, examine any Director or officer of the Bank. 

            (2) The auditors shall make a report to the Central Government upon the annual balance sheet and accounts, and in every such report they shall state whether, in their opinion, the balance sheet is a full and fair balance sheet containing all necessary particulars and properly drawn up so as to exhibit a true and correct view of the State of the Bank's affairs, and, in case they have called for any explanation or information from the Central Board, whether it has been given and whether it is satisfactory.


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