{"id":50,"date":"2018-10-31T11:33:38","date_gmt":"2018-10-31T11:33:38","guid":{"rendered":"http:\/\/corpbiz.io\/learning\/?p=50"},"modified":"2022-11-16T15:47:40","modified_gmt":"2022-11-16T10:17:40","slug":"secretarial-audit-is-standing-out-in-the-market","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/secretarial-audit-is-standing-out-in-the-market\/","title":{"rendered":"Changes in Secretarial Audit in the Market: MCA 2020"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The&nbsp;<strong>secretarial audit<\/strong>&nbsp;was introduced under the Companies Act 2013. Under the secretarial audit, the company has to go through the compliance audit by the independent practicing company secretary.<\/p>\n\n\n\n<p>Section 204 of&nbsp;<strong>Companies\nAct, 2013<\/strong> contains\nprovision for Secretarial audit for bigger companies. It was proposed as a significant step in improving and enhancing the corporate\ngovernance and ensuring\nthe efficient compliances of the regulations applicable on the company.<\/p>\n\n\n\n<p>Secretarial Audit&nbsp;is an auditing conducted to verify the Compliances\nof different legislations that are applicable to the company i.e. including\nCompany law but not limited to that only.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/secretarial-audit-is-standing-out-in-the-market\/#Overview_What_Is_the_Purpose_of_Secretarial_Audit\" >Overview: What Is the Purpose of Secretarial Audit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/secretarial-audit-is-standing-out-in-the-market\/#What_are_the_Companies_that_derive_Under_Secretarial_Audit_in_India\" >What are the Companies that derive Under Secretarial Audit in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/secretarial-audit-is-standing-out-in-the-market\/#Who_meets_the_requirements_to_carry_the_Secretarial_Audit\" >Who meets the requirements to carry the Secretarial Audit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/secretarial-audit-is-standing-out-in-the-market\/#What_are_the_amendments_by_Companies_Amendment_Rules_2020\" >What are the amendments by Companies Amendment Rules, 2020?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/secretarial-audit-is-standing-out-in-the-market\/#What_are_the_Auditing_Standards_for_CS_PAN_India_to_abide\" >What are the Auditing Standards for CS PAN India to abide?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/secretarial-audit-is-standing-out-in-the-market\/#What_are_the_segregated_standards_in_the_new_Audit_Segments\" >What are the segregated standards in the new Audit Segments?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/secretarial-audit-is-standing-out-in-the-market\/#Consequences_of_new_modification\" >Consequences of new modification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/secretarial-audit-is-standing-out-in-the-market\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_What_Is_the_Purpose_of_Secretarial_Audit\"><\/span>Overview: What Is the Purpose of Secretarial Audit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The purpose of the&nbsp;<a href=\"https:\/\/corpbiz.io\/secretarial-audit\"><strong>secretarial audit<\/strong><\/a>&nbsp;is to find the non-compliances by the company.<\/li><li>To check whether the company is following the&nbsp;<strong>proper guidelines&nbsp;<\/strong>stated under the Companies Act 2013.<\/li><li>It ensures that the company could improve the&nbsp;<strong>points targeted&nbsp;<\/strong>by the      auditors, by working on the glitches.<\/li><li>Secretarial auditing helps in following the&nbsp;<strong>rules and regulations&nbsp;<\/strong>and      not to attract any&nbsp;<strong>fine and penalty.<\/strong><\/li><li>Auditing is a periodical process that builds&nbsp;<strong>faith and trust<\/strong>&nbsp;in      regulators, stakeholders, and management.<\/li><li>A clean secretarial audit report proves that your company is&nbsp;<strong>risk-averse&nbsp;<\/strong>and can evade difficult situations in the future.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Companies_that_derive_Under_Secretarial_Audit_in_India\"><\/span>What are the Companies that derive Under Secretarial Audit in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under the <strong><em>Companies Act 2013<sup><a class=\"text-primary\" href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\"><strong>[1]<\/strong><\/a><\/sup><\/em>, <\/strong>the following is the list of companies that have to be audited by the independent practicing company secretary to procure the Company Audit Report.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"644\" height=\"425\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-144.png\" alt=\"company secretary to procure the Company Audit Report\" class=\"wp-image-9608\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-144.png 644w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-144-300x198.png 300w\" sizes=\"(max-width: 644px) 100vw, 644px\" \/><\/figure><\/div>\n\n\n\n<p>Turnover is the total amount of money, which makes by the sale, supply\/distribution of goods and services provided to the consumers during the whole financial year. All the subsidiary companies of a public company&nbsp;or other companies that fall under this criterion have to conduct an Audit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_meets_the_requirements_to_carry_the_Secretarial_Audit\"><\/span>Who meets the requirements to carry the Secretarial Audit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The member who will be conducting the audit, he\/she has to be a member of company secretaries of India, having a certificate of practice to make the audit report in&nbsp;<strong>form MR-3<\/strong>&nbsp;to the company.<\/li><li>If a company secretary is employed and not in whole-time practice, he\/she is not suitable to conduct the audit. There is no set limit to the number of auditing performed by the auditors in one financial year.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Advantages of Secretarial Audit<\/h3>\n\n\n\n<p><strong><em>The following are the advantages of secretarial Audit \u2013<\/em><\/strong><\/p>\n\n\n\n<ul><li>Audits are essential for the companies, which fulfil the above criterion, and auditors are seen as a pillar to find the loopholes in their functioning, which can be eradicated to&nbsp;<strong>improve the services and mechanism<\/strong>&nbsp;of the company.<\/li><li>In this generation of internet,&nbsp;<strong>frauds and bugs<\/strong>&nbsp;can knock at your door anytime and it\u2019s always said that \u201c<strong>prevention is better than cure<\/strong>\u201d. So, a secretarial audit helps the company to be ready for the unforeseen challenges in the future and take preventive measures.<\/li><li>Auditors make sure that the company\u2019s rules and regulations are being followed by the employees of the company.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_amendments_by_Companies_Amendment_Rules_2020\"><\/span>What are the amendments by Companies Amendment Rules, 2020?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Amendment by\n\u201cCompanies Appointment and&nbsp;<a href=\"https:\/\/corpbiz.io\/learning\/managerial-remuneration-amendment-2020\/\"><strong>Remuneration of Managerial<\/strong><\/a>&nbsp;Personnel\u201d Rule,\n2020 to Rule 8A &amp; Rule 9 of Companies -Appointment and Remuneration of\nManagerial Personnel Rules, 2014 are as follows:-<\/p>\n\n\n\n<p><strong><em>Amended Rule-8A and Rule-9 expresses this following criterion<\/em><\/strong><\/p>\n\n\n\n<ul><li><strong>Prior Situation of Rule-8A<\/strong> \u2013<\/li><\/ul>\n\n\n\n<p>A company must have a whole-time company secretary,\nwho has a paid-up share capital of&nbsp;<strong>five Crore<\/strong>&nbsp;Rupees or\nmore-veiled under rule 8.<\/p>\n\n\n\n<ul><li><strong>Revised situation of Rule 8A<\/strong>\u2013<\/li><\/ul>\n\n\n\n<p>Every single Private Company must have a whole-time\ncompany secretary having paid-up share capital of&nbsp;<strong>10 Cr<\/strong>&nbsp;rupees\nor more.<\/p>\n\n\n\n<ul><li><strong>Revised Situation of Rule 9<\/strong>&#8211; <\/li><\/ul>\n\n\n\n<p>Provision connected to Secretarial Audit is now\npertinent on the subsequent list of Companies:<\/p>\n\n\n\n<ol><li>Every single company deriving its&nbsp;<strong>outstanding loans or borrowings<\/strong>&nbsp;from public financial institutions or banks of one hundred Crore rupees or more.<\/li><li>All public company deriving it\u2019s a paid-up share capital up to&nbsp;<strong>50 crore rupees<\/strong>&nbsp;or more, or<\/li><li>All public company deriving its turnover of&nbsp;<strong>250 crore rupees<\/strong>&nbsp;or more; or<\/li><li>Secretarial Audit Report shall be in&nbsp;<strong>Form MR.3<\/strong>, which needs to be accepted as uniformity.<\/li><li><strong>Assumptions and Illustrations:-<\/strong>&nbsp;It is hereby enlightened that, for the purposes of this sub-rule, the paid-up share capital and turnover or outstanding borrowings or loans, all the current existing shall be taken into account on the last date of up-to-date audited financial statement.\u201d.<\/li><li><strong>In cases of Rule 8A,&nbsp;<\/strong>the previous limit for selection or appointment of Company Secretary in Private Companies or other companies was having paid-up share capital of rupees Five Cr, or more. However, after amendment, it is raised up to rupees 10 Cr. or more which will lead to&nbsp;<strong>unemployment of engaged Company Secretary<\/strong>&nbsp;in private sectors\/companies. <\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Auditing_Standards_for_CS_PAN_India_to_abide\"><\/span>What are the Auditing Standards for CS PAN India to abide?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The practice of Auditing Standards that were earlier introduced has been mandated by the&nbsp;<strong>Institute of company secretaries of India (ICSI)<\/strong>&nbsp;on an intentional basis in July 2019. All the audits held in the companies will stick to these Auditing Standards preliminarily w.e.f&nbsp;<strong>1 April 2020<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Core Highlights<\/h3>\n\n\n\n<ul><li>All practicing Company Secretary is obligatory to abide by the auditing standards.<\/li><li>Audit assignments that are duly reflected valid by the Companies Act 2013, Security and Exchange Board of India Act, 1992, or any other related law are allowed to take on by the Practicing CSs. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Important Intentions for considered Auditing Standards<\/h3>\n\n\n\n<ul><li>Improvement of  equipment, gears, auditing tools, and methods.&nbsp;<\/li><li>Bring up-to-date the laws to make it in-line with the present needs of the company as well as the government.<\/li><li>Foundering modus operands countrywide that will bring in standardization and professionalism in the audit system.&nbsp; <\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/audit-of-charitable-trust-or-ngo-under-section-12a-b\/\">Audit of Charitable trust or NGO under section 12A (b)\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_segregated_standards_in_the_new_Audit_Segments\"><\/span>What are the segregated standards in the new Audit Segments?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>CS certificate and Audit Engagement letter<\/strong>&nbsp;is the eligibility to conduct the Audit while practicing. If any of the above-mentioned documents is missing, it will restrict the CS from performing the Audit.&nbsp;<strong>For an easy understanding of this subject, Auditing Standards are separated into four parts.<\/strong><\/p>\n\n\n\n<p><strong><em>Those are as follows:-<\/em><\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"591\" height=\"291\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-145.png\" alt=\"new Audit Segments\" class=\"wp-image-9609\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-145.png 591w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-145-300x148.png 300w\" sizes=\"(max-width: 591px) 100vw, 591px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">(CSAS 1):-Meaning of Auditing Engagement<\/h3>\n\n\n\n<ul><li><strong>Protocols of the Audit Engagement<\/strong>&nbsp;&#8211; Process set by the authorities while he\/she conducts an audit must keep in mind by the auditor.<\/li><li>Auditee must discuss several issues and consequences of the&nbsp;<strong>previous audit<\/strong>. Moreover, the&nbsp;<strong>pre-audit meeting&nbsp;<\/strong>is a must among the      auditor.<\/li><li><strong>Rules<\/strong>&nbsp;connected to the appointment of the auditor have to be surveyed at the time of auditor appointment which is mentioned in auditing standards.<\/li><li>Auditors should have the&nbsp;<strong>eligibility certificate<\/strong>&nbsp;that permits him\/her to conduct the audit.&nbsp;<\/li><li>When any auditor pays the&nbsp;<strong>commission to obtain the audit<\/strong>, in that case, it is known as&nbsp;<strong>offense.<\/strong><\/li><li>Auditor essentially communicates to the previous auditor and set all the information that will benefit them in the further process.&nbsp;<\/li><li>The auditor needs to&nbsp;<strong>wait for 7 days<\/strong>&nbsp;before starting with the audit after conducting a meeting with the previous auditor. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Auditor need to adhere with stated conducts&nbsp;&amp; number of audits<\/h3>\n\n\n\n<ul><li>Suitably authenticated MGT-7<\/li><li>10 per PCS For secretarial audit<\/li><li>Secretarial Audit Under Section 204<\/li><li>Documentation in MGT 8<\/li><li>Annual Secretarial Compliance Reports number is 5<\/li><li>Any engagement of diverse interests with the auditee must not disturb the substantial interest.&nbsp;<\/li><li>The auditor is meant to be indebted to auditee with amount up to R.s. 5,00,000 when the auditor is working for the auditee for more than 2 years if he grasps 2% paid-up capital or shares worth Rs. 50,000 (whichever is lower)&nbsp; <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">(CSAS 2): Audit Process and Documentation<\/h3>\n\n\n\n<p style=\"text-align:left\">The complete process of Audit is founded on execution, planning, and documentation. Not any of these could be avoided in the audit.&nbsp;&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"559\" height=\"368\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-146.png\" alt=\"Secretarial Audit Process and Documentation\" class=\"wp-image-9610\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-146.png 559w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-146-300x197.png 300w\" sizes=\"(max-width: 559px) 100vw, 559px\" \/><\/figure><\/div>\n\n\n\n<p><strong>Proper Audit Plan<\/strong>&nbsp;\u2013 Before beginning the process, it is crucial to setting up a roadmap. The flawless audit plan stretches all the answers for where, what, when, who, and how. Aims of execution, audit, location, and a projected plan of the audit must be prepared.&nbsp;<\/p>\n\n\n\n<p><strong>Overall Risk Assessment<\/strong>\u2013 Categorizing the type of industry, administrative structure, and legal compliance requirements, market viewpoint, and industry setting must be done during the overall risk assessment plan.<\/p>\n\n\n\n<p><strong>Collect Auditee\u2019s Information<\/strong>&nbsp;\u2013 Auditee\u2019s nature of business and laws applicable to the business must be known to Auditor, and must be fully aware of whole applicability as required.<\/p>\n\n\n\n<p><strong>Prepare Audit Checklist&nbsp;<\/strong>\u2013 An audit checklist has to be continued by the auditor rendering to which the audit procedure will flow. It will also give or take nearly all the compliance requirements which will be identified from time to time. Therefore, it can be said that an audit checklist is an obligatory need for an audit to meritoriously work. <\/p>\n\n\n\n<p><strong>Complete Paper Work<\/strong>&nbsp;\u2013 Auditors are required to make reports and affix all proofs and documents that are needed. All the audit evidence, work done and outcome of the audit must duly be stated in the end reports\/documents.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">(CSAS 3): Forming of Opinion<\/h3>\n\n\n\n<p>The auditor needs to follow the mentioned basic protocols when it comes to assessing the end results strained out from the audit evidence and contribute their estimation through a report. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The standards established for audit estimations<\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"590\" height=\"336\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-147.png\" alt=\"standards established for audit estimations\" class=\"wp-image-9611\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-147.png 590w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/05\/image-147-300x171.png 300w\" sizes=\"(max-width: 590px) 100vw, 590px\" \/><\/figure><\/div>\n\n\n\n<p><strong>Records&nbsp;<\/strong>\u2013 Under the standard sets for audit estimations, Records include the MOA, AOA, minutes, registers, forms, returns, index, etc.&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>Misstatement<\/strong>&nbsp;\u2013 Under the standard sets for audit estimations, misstatement suspects the noting down if any information is false, deceptive, omitted, or is incompatible with the auditors\u2019 examination.&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Procedure of Standard set for Audit Opinion estimation<\/h3>\n\n\n\n<p>While providing the estimation, the auditor must deliberate all the explanations, conflicting understandings, other party statements, etc. resulting in a complete analysis of the reports\/statements.<\/p>\n\n\n\n<p><strong><em>The Auditor must abide by the following principles:-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Standard of Contradictory\nProcess<\/li><li>Standard of Completeness<\/li><li>Standard of Timeliness<\/li><li>Standard of Objectivity<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Auditors\nResponsibility<strong> <\/strong><\/h3>\n\n\n\n<p>The auditor in the explosion of report comprises all sections under the title of \u2018Auditor\u2019s Responsibility.\u2019 The resistance of audit will work being showed as per the simple Auditing Standards.&nbsp;Moreover, the proof the auditor has to be obtained the reasonable declaration, records prepared and the whole paperwork is free from any false statement.<\/p>\n\n\n\n<p><strong>Report Format of the estimation<\/strong>\u2013 Report Format of the estimation will either be specified by appointing authorities or stated under audit assignation letter or as long as given under applicable laws.&nbsp;<\/p>\n\n\n\n<p><strong>Signature in the Reports<\/strong>\u2013&nbsp;The Signature in the reports must include<\/p>\n\n\n\n<ul><li>Name of audit firm<\/li><li>Name of the auditor<\/li><li>Certificate of practicing number<\/li><li>Specified associate or fellow\nmember<\/li><\/ul>\n\n\n\n<p>The date and place of signing the report must be stated by the auditor in case the report is allotted by two different auditors at altered places or changed dates.&nbsp;&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consequences_of_new_modification\"><\/span>Consequences of new modification <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The consequences of new modification in companies (Appointment\nand Remuneration of Managerial Personnel) Amendment Rules, 2014 are: <\/p>\n\n\n\n<ul><li>By ruling out the concept of \u201c<strong>name lending<\/strong>\u201d, it has enhanced the&nbsp;<strong>visibility and brand building<\/strong>&nbsp;of the profession of Company Secretaries of India.<\/li><li>For the Practicing&nbsp;<a href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/\"><strong>Company Secretary<\/strong><\/a>, it has increased the&nbsp;<strong>scope of work<\/strong>.<\/li><li>As applications for the Certificate of Practice will gradually increase, it will also lead to the&nbsp;<strong>Promotion of self-independent Professions.<\/strong><\/li><li>Company Secretary which is previously employed will find it difficult to&nbsp;<strong>switch their jobs<\/strong>&nbsp;and newly qualified Company Secretary will face      problems&nbsp;<strong>getting a job<\/strong>.<\/li><li>It is evident that, now only big Companies will be employing Whole-time Company Secretary, as the recognition of the \u201c<strong>Profession of&nbsp;<\/strong>Company Secretary\u201d has been exaggerated deeply by this new alteration.<\/li><\/ul>\n\n\n\n<p>The audit report is\ncomplete of an audit that is equipped by the auditor steering the\naudit.&nbsp;The report comprises name, nature, place of the scope, business,\nand objectives of the business, auditor\u2019s estimation, and examination on the\nlocus of the company in the market, in addition to a lot more.&nbsp;Moreover,\naudit report must be organized in detail displaying the state of affairs of the\nauditee.&nbsp;Accordingly, the amendment has abridged the employment chances\nfor the Company Secretaries in the Private Companies, and on the other hand, it\nhas amplified the possibility of work for a Practicing Company Secretary in\nIndia.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Summing up the whole, the entire contents of this blog have been developed grounded on pertinent provisions and are only the views of the authors. Nonetheless, the author has made ultimate exertions to provide authentic facts. Conversely,&nbsp;<a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a>&nbsp;specifically disclaims all and any liability in dependence upon the insides of this blog. Here, at CorpBiz, We have a dedicated team of professionals including CA, CS. If you are looking for an auditor, do give us a call.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/different-committees-and-functioning-as-per-companies-act-2013\/\">\nDifferent Committees and Their Functioning as per Companies Act, 2013\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The&nbsp;secretarial audit&nbsp;was introduced under the Companies Act 2013. Under the secretarial audit, the company has to go through the compliance audit by the independent practicing company secretary. Section 204 of&nbsp;Companies Act, 2013 contains provision for Secretarial audit for bigger companies. It was proposed as a significant step in improving and enhancing the corporate governance and [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":9614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[415],"tags":[27],"acf":{"service_id":"195"},"authorName":"Kandarp Vanita","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/02\/image_2021_02_01T09_09_44_024Z.png","authorDescription":"Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents &amp; dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.","postViews":7818,"readingTime":7,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=50"}],"version-history":[{"count":26,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50\/revisions"}],"predecessor-version":[{"id":50775,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/50\/revisions\/50775"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/9614"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=50"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=50"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=50"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}