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 Requirement | Provision (Companies Act, 2013) | Consequences of Non-Compliance |
|---|---|---|---|
| 1 | Certificate of Incorporation, PAN, TAN, MOA & AOA | Sec. 7, Rule 16 of Companies (Incorporation) Rules | Company liable for penalties; may be declared invalid/incorporation revoked |
| 2 | Maintenance of Registered Office | Sec. 12 | Fine up to ₹1,000/day of default; Registrar may verify and take action |
| 3 | Minimum Number of Directors | Sec. 149(1) | Fine up to ₹5,000/day; company considered non-compliant |
| 4 | DIN & Director KYC | Sec. 153 & Rule 12A | DIN deactivation; penalties up to ₹5,000 per default |
| 5 | Disclosure of Interest (Form MBP-1) | Sec. 184(1) | Penalty of ₹1,00,000; invalidation of contracts |
| 6 | Appointment/Reappointment of Directors | Sec. 152, 160, 161, Form DIR-12 | Void appointments; penalty up to ₹5,000/day |
| 7 | Holding Board Meetings (Minimum 4 for Public Co.) | Sec. 173 | ₹25,000 per officer; Board resolutions may be invalid |
| 8 | AGM conducted annually | Sec. 96 | ₹1 lakh + ₹5,000/day default for company & officer |
| 9 | Filing of Financial Statements (AOC-4) | Sec. 137 | ₹1,000/day; Max ₹10 lakh (company) & ₹5 lakh (officer) |
| 10 | Filing of Annual Return (MGT-7) | Sec. 92 | ₹50,000 to ₹5 lakh (company) & ₹50,000 to ₹5 lakh (officer) |
| 11 | Auditor Appointment (Form ADT-1) | Sec. 139 | ₹25,000 to ₹5 lakh; audit invalid; director disqualification |
| 12 | Maintenance of Statutory Registers | Sec. 88, 189, 186 | ₹50,000 + ₹1,000/day default |
| 13 | Issue/Transfer of Shares (Register, Certificates) | Sec. 56, 62 | ₹50,000 to ₹5 lakh; invalid share transfer |
| 14 | Disclosure of Related Party Transactions | Sec. 188 | Penalty ₹25 lakh; contracts voidable |
| 15 | Approval of Related Party Transactions | Sec. 188 read with Rule 15 | Board/Shareholder approval needed; penalty ₹5 lakh |
| 16 | Loans, Investments, Guarantees | Sec. 185, 186 | Fine up to ₹25 lakh; imprisonment in some cases |
| 17 | Registration of Charges (CHG-1/9) | Sec. 77 | Charge not valid against liquidator/creditors |
| 18 | Satisfaction of Charges (CHG-4) | Sec. 82 | Penalty ₹5,000/day |
| 19 | Filing MSME Form I | MCA Notification (Jan 2019) | ₹20,000 + ₹1,000/day (Sec. 405) |
| 20 | Filing DPT-3 (Return of Deposits) | Rule 16A of Companies (Acceptance of Deposits) Rules | Penalty ₹5,000 + ₹500/day |
| 21 | Beneficial Ownership Declarations (BEN Forms) | Sec. 90 & Rules | ₹1,000/day; imprisonment for willful non-disclosure |
| 22 | CSR Applicability & Compliance | Sec. 135 | Penalty up to ₹1 crore (company); ₹2 lakh/officer |
| 23 | Internal Audit (If Applicable) | Sec. 138 | Board accountability; audit lapses |
| 24 | Audit Trail in Accounting Software | MCA Notification (effective FY 2023-24) | Penalty as per Sec. 128 & 129 |
| 25 | Display of Company Details on Website & Letterhead | Sec. 12(3)(c) | Fine up to ₹1,000/day |
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