Section 407 CAMA 2020
Section 407 Companies and Allied Matters Act is about Auditors’ duties and powers. It is under Chapter 15 (Audit) of the Act.
(1) The company’s auditors shall, in preparing their report to carry out such investigations as may enable them to form an opinion whether—
(a) proper accounting records have been kept by the company and proper returns adequate for their audit have been received from branches not visited by them ; or
(b) the company’s balance sheet and (if not consolidated) its profit andloss account are in agreement with the accounting records and returns.
(2) If the auditors are of the opinion that proper accounting records have not been received from branches not visited by them, or if the balance sheet and (if not consolidated) the profit and loss account are not in agreement with the accounting records and returns, the auditors shall state that fact in their report.
(3) Every auditor of a company has a right of access at all times to thecompany’s books, accounts and vouchers, and be entitled to require from the company’s office such information and explanations as he thinks necessary for the performance of the auditor’s duties.
(4) If the requirements of Part V and VI of the Second Schedule and Parts I and II of the Third Schedule to this Act are not complied with in the accounts, it is the auditors’ duty to include in their report, so far as they are reasonably able to do so, a statement giving the required particulars.
(5) The auditors’ shall consider whether the information given in the directors’ report for the year for which the accounts are prepared is consistent with those accounts, and if they are of opinion that it is not, they shall state that fact in their report.
