A statutory audit of a company is also a check that the company has kept the law it is governed by. SA 250 asks the auditor to consider laws and regulations; in practice that consideration is a checklist carried over from last year. The Companies Act module walks the Act against the client itself.
56 provisions, gated to the company
Audcrix holds 56 provisions of the Companies Act, 2013 that bear on an audit, and gates each one by what actually determines whether it applies: the type of company, its size and whether it is listed. A small private company is not walked through obligations that bind only listed companies, and every provision that does not apply says why.
Tested against the books, per ledger
The provisions are not a questionnaire. Where the books can answer the question, they do:
- Section 185 — loans, guarantees and security to directors and connected persons, tested against the actual balances and transactions.
- Section 188 — contracts and arrangements with related parties, drawn from the related parties already mapped for the client.
- Deposits and specified transactions tested ledger by ledger rather than asserted in a representation.
- AS 18 related-party disclosure, from the same party register.
One register behind every answer
The company-law tests read the same related-party register the rest of Audcrix uses, so section 185, section 188 and the AS 18 disclosure cannot disagree about who a related party is. When a CA overrides a conclusion, the override is recorded with who made it and when.
LLPs and firms handled as what they are
Entity type decides the questions. An LLP is walked through its own obligations — Form 8, Form 11 and section 194T — and is not asked company-law questions that do not apply to it.
Why this belongs inside the audit
Company-law non-compliance is found late when it is checked from a list at the end. Testing the provisions against the books during the engagement means an unapproved related-party contract or a prohibited loan is a finding while there is still time to deal with it.
Questions CAs ask
How many Companies Act provisions does Audcrix check?
56 provisions of the Companies Act, 2013, each gated by the company's type, size and listing so only the ones that apply are tested.
Are sections 185 and 188 tested from the books?
Yes. Section 185 is tested against the actual loan and guarantee balances, and section 188 against the related parties already mapped for the client.
What about LLPs?
An LLP is walked through its own obligations, including Form 8, Form 11 and section 194T, and is not asked company-only questions.
Further reading
Related modules
- Related Party — Identify related parties once and apply them to every transaction — AS 18 disclosure, section 188 contracts, section 185 loans with 2(22)(e), and a full override trail.
- Client Master — Section 44AB, 194Q, labour-law and company-law applicability decided once from the client's profile — with the reason every check that does not apply is marked N/A.
- Statutory Audit — Statutory audit software built around the Standards on Auditing — materiality, SA 530 sampling, SA 510 opening balances and confirmations, documented as the work is done.