# Powers and Duties of Auditor — Section 143
## Key Powers (Rights)
1. Right of Access to Books of Account and vouchers at all times, at the registered office or any other place.
2. Right to require information & explanation from officers of the company.
3. Right to access records of subsidiaries and associate companies — to the extent necessary for consolidation of financial statements.
## Matters of Inquiry — Section 143(1)
The auditor must inquire into:
### A. Loans, Advances and Deposits
- Whether loans and advances made on the basis of security have been properly secured and whether terms are not prejudicial to interest of company or members.
- Whether personal expenses have been charged to revenue account.
- Whether loans and advances have been shown as deposits.
### B. Investments / Assets
- Whether transactions which are merely book entries are prejudicial to interest of the company.
- Whether shares, debentures and other securities have been sold at a price less than purchase price.
### C. Allotment of Shares
- Where company is not an investment/banking company, whether shares allotted for cash have been actually received in cash, and whether the position stated in books and balance sheet is correct, regular and not misleading.
## Auditor's Report — Section 143(3)
The report must state, among other things:
1. Whether he has sought and obtained all information and explanations necessary.
2. Whether proper books of account as required by law have been kept and proper returns adequate for audit have been received from branches not visited.
3. Whether the branch auditor's report has been received and how he dealt with it.
4. Whether the Balance Sheet and P&L Account agree with the books and returns.
5. Whether financial statements comply with Accounting Standards.
6. Observations or comments on financial transactions having adverse effect on functioning of the company.
7. Whether any director is disqualified under Section 164(2).
8. Qualifications, reservations or adverse remarks relating to maintenance of accounts.
9. Whether the company has adequate Internal Financial Controls (IFC) with reference to FS and their operating effectiveness. Applicable to:
- All Listed Companies, AND
- Unlisted Public Companies crossing threshold (Paid-up capital ≥ ₹50 cr OR Turnover ≥ ₹500 cr OR Borrowings ≥ ₹25 cr).
10. Other matters prescribed under Rule 11:
- Whether the company has disclosed impact of pending litigations.
- Provision for material foreseeable losses on long-term contracts including derivatives.
- Delay in transferring amounts to Investor Education and Protection Fund (IEPF).
- Disclosure regarding ultimate beneficiary (funded by/to company).
- Whether dividend declared/paid complies with Section 123.
- Features of accounting software — audit trail.