# Powers and Duties of Auditor — Section 143
## Powers of Auditor — Section 143(1)
Every auditor shall have a right to:
1. Access to Books of Accounts and Vouchers — at all times, whether kept at the registered office or elsewhere.
2. Require information and explanations from the officers of the company as he may consider necessary for performance of his duties.
3. Access to records of Subsidiaries / Associate Companies — so far as it relates to the consolidation of financial statements of the holding company with its subsidiaries/associates.
## Specific Matters of Inquiry — Section 143(1) Proviso
The auditor shall inquire into the following matters (illustrative):
- Whether loans and advances made by the company on the basis of security have been properly secured and whether the terms are not prejudicial to the interests of the company or its members.
- Whether transactions of the company which are merely represented by book entries are prejudicial to the interests of the company.
- Where company is not an investment/banking company, whether so much of the assets of the company as consist of shares, debentures and other securities have been sold at less than their purchase price.
- Whether loans and advances made by the company have been shown as deposits.
- Whether personal expenses have been charged to revenue account.
- Where shares have been allotted for cash, whether cash has actually been received in respect of such allotment, and if not, whether the position as stated in the books and balance sheet is correct, regular and not misleading.
## Duties of Auditor
1. Make Report to members on:
- Accounts examined by him.
- Every financial statement laid before the company in general meeting.
2. State whether the financial statements give a true and fair view of the state of affairs.
3. Comply with Auditing Standards (Section 143(9)).
4. Report on matters specified under CARO (Companies Auditor's Report Order), where applicable.
5. Report fraud under Section 143(12) — if the auditor has reason to believe that an offence of fraud involving prescribed amount is being or has been committed against the company by officers/employees, he shall report to the Central Government / Audit Committee / Board (depending on amount).
## Auditor's Report — Statutory Contents
The auditor's report shall state, among other things:
- Whether he has sought and obtained all information and explanations.
- Whether proper books of account have been kept.
- Whether the accounts give a true and fair view.
- Observations or comments on financial transactions or matters having any adverse effect on the functioning of the company.
- Any qualification, reservation or adverse remark relating to maintenance of accounts.
- Whether internal financial controls and operating effectiveness exist (for applicable companies).