Inspection of account books of big corporates
The Ministry of Corporate Affairs carries out scrutiny and inspection of accounts of companies as and when required as part of its responsibility of administration of the Companies Act, 1956. During this process, compliance with Accounting Standards is also checked and Accounting Standard 11 titled ‘The effect of changes in foreign exchange rates’ is a part of Accounting Standards. Further, auditors of every company have to inter-alia report on the compliance of Accounting Standards as required under Section 227(3)(d) of the Companies Act, 1956.
This information was given today by Shri Salman Khurshid, Minister for Corporate Affairs, in the Rajya Sabha in a written reply.
