Audit Checklist under the Companies Act, 2013 with Consequences of Non-Compliance

Audit Checklist under the Companies Act, 2013 with Consequences of Non-Compliance

Here is the Audit Checklist under the Companies Act, 2013 in a tabular format with columns for Sr. No., Audit Requirement, Relevant Provision, and Consequences of Non-Compliance:

Sr. No.Audit RequirementProvision (Companies Act, 2013)Consequences of Non-Compliance
1Certificate of Incorporation, PAN, TAN, MOA & AOASec. 7, Rule 16 of Companies (Incorporation) RulesCompany liable for penalties; may be declared invalid/incorporation revoked
2Maintenance of Registered OfficeSec. 12Fine up to ₹1,000/day of default; Registrar may verify and take action
3Minimum Number of DirectorsSec. 149(1)Fine up to ₹5,000/day; company considered non-compliant
4DIN & Director KYCSec. 153 & Rule 12ADIN deactivation; penalties up to ₹5,000 per default
5Disclosure of Interest (Form MBP-1)Sec. 184(1)Penalty of ₹1,00,000; invalidation of contracts
6Appointment/Reappointment of DirectorsSec. 152, 160, 161, Form DIR-12Void appointments; penalty up to ₹5,000/day
7Holding Board Meetings (Minimum 4 for Public Co.)Sec. 173₹25,000 per officer; Board resolutions may be invalid
8AGM conducted annuallySec. 96₹1 lakh + ₹5,000/day default for company & officer
9Filing of Financial Statements (AOC-4)Sec. 137₹1,000/day; Max ₹10 lakh (company) & ₹5 lakh (officer)
10Filing of Annual Return (MGT-7)Sec. 92₹50,000 to ₹5 lakh (company) & ₹50,000 to ₹5 lakh (officer)
11Auditor Appointment (Form ADT-1)Sec. 139₹25,000 to ₹5 lakh; audit invalid; director disqualification
12Maintenance of Statutory RegistersSec. 88, 189, 186₹50,000 + ₹1,000/day default
13Issue/Transfer of Shares (Register, Certificates)Sec. 56, 62₹50,000 to ₹5 lakh; invalid share transfer
14Disclosure of Related Party TransactionsSec. 188Penalty ₹25 lakh; contracts voidable
15Approval of Related Party TransactionsSec. 188 read with Rule 15Board/Shareholder approval needed; penalty ₹5 lakh
16Loans, Investments, GuaranteesSec. 185, 186Fine up to ₹25 lakh; imprisonment in some cases
17Registration of Charges (CHG-1/9)Sec. 77Charge not valid against liquidator/creditors
18Satisfaction of Charges (CHG-4)Sec. 82Penalty ₹5,000/day
19Filing MSME Form IMCA Notification (Jan 2019)₹20,000 + ₹1,000/day (Sec. 405)
20Filing DPT-3 (Return of Deposits)Rule 16A of Companies (Acceptance of Deposits) RulesPenalty ₹5,000 + ₹500/day
21Beneficial Ownership Declarations (BEN Forms)Sec. 90 & Rules₹1,000/day; imprisonment for willful non-disclosure
22CSR Applicability & ComplianceSec. 135Penalty up to ₹1 crore (company); ₹2 lakh/officer
23Internal Audit (If Applicable)Sec. 138Board accountability; audit lapses
24Audit Trail in Accounting SoftwareMCA Notification (effective FY 2023-24)Penalty as per Sec. 128 & 129
25Display of Company Details on Website & LetterheadSec. 12(3)(c)Fine up to ₹1,000/day

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