8The Company Audit – II8.1 General Considerations in Company AuditThese have to be determined on a consideration of :(a) objectives of audit;(b) various provisions in the Companies Act, 1956, especially those concerning accountsand audit; and(c) the scope of the report that the auditor of a company is required to make in pursuance ofthe provisions contained in section 227 of the Act.

8.2 Specific Provisions as Regards Accounts in the CompaniesAct, 1956

(1) Every company must maintain at its registered office proper books of account with regardTo

(2) When a company has a branch office, whether in or outside India, to comply with theaforementioned provisions

(4) The books of account and other books and papers shall be open to inspection by anydirector during business hours.

Inspection of Books of Account, etc. of Companies - Section 209

Constitution of National Advisory Committee on Accounting Standards

Form and contents of balance sheet and profit and loss account :

8.3 Payment of Interest out of Capital during Construction