The Auditor has the Right to

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The Auditor has the right to sign the audit report, correct the wrong statement, take technical and legal advice, etc. Apart from this, there are several duties that are performed by an auditor in an organization. An auditor also has the right to attend general meetings, examine books of accounts, ask for explanations from the heads of the company, etc. He is an agent of shareholders and hence, has access to all the information that is relevant to them.

Rights of an Auditor

The rights of auditors have been incorporated in the Companies Act. The duties of an Auditor are to make special investigations in certain matters like loans and advances made by the company, investments, etc. An auditor is a professional who is recruited by a company to perform audits on their financial reports. They play a crucial role in estimating the valuation and profits of a company.

An Auditor should have certain qualifications in the field of accounts because it is a specialised job. He/She is responsible for making the report, answerable for the negative points in a report, etc. All the major statutory rights of an auditor are mentioned below.

  • Auditor has the access to Books of Accounts
  • He/ She can ask for any information and explanations
  • They can make suggestions to the Board
  • Can visit branches
  • An Auditor should receive notice of the meetings and attend the same
  • He/She is authorised to sign the Audit Report
  • He/She has the right to receive remuneration
  • The Auditor can also exercise the right to indemnity
  • He/She is entitled to legal and technical advice


The Auditor has the Right to

The rights of an Auditor include various points such as examining books of accounts, asking for remuneration for the audit work, signing the audit report, etc The auditor can attend share holder’s meetings and can make statements, can visit the different branches of the company, can make expert advice on his work, can ask for remuneration for the audit work, can correct any wrong statement in a general meeting, etc.

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