Auditor's report obligations require disclosure on asset records, inventory verification, related party loans, internal controls and statutory compliance.

The auditor must state whether the company maintains and physically verifies fixed assets and inventory, report material discrepancies and any impact on going concern; disclose loans to or from parties in the section 301 register including amounts, terms and recovery steps for overdue sums; assess internal control adequacy and continuing failures; confirm compliance with deposit and statutory provisions and orders; verify existence of internal audit and cost records where required; report on statutory dues, accumulated losses and cash losses, defaults to lenders, adequacy of security documentation, compliance for chit funds and nidhi entities, investment records, guarantees prejudicial to the company, application of term loans, use of short-term funds for long-term investment, preferential allotments and creation of securities for debentures.

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