Authentication and signing of balance sheet and profit and loss account on the same date by auditors

Clarification on Audit Timing: Directors Approve Accounts Before Auditors Report; Signing on Approval Day is Acceptable.

The circular addresses concerns raised by the Institute of Chartered Accountants of India regarding the timing of audit reports relative to the approval of accounts by a company's board of directors. It clarifies that directors are responsible for preparing and approving company accounts before auditors report on them. The law does not specify when auditors should begin their work, but they have continuous access to company records after their appointment. This allows auditors to start their review before formal approval of accounts, ensuring efficiency. Signing the balance sheet on the same day as board approval does not imply inadequate auditing.