(3)The auditor’s report shall also state—(a)whether he has sought and obtained all the information and explanations which to the best of his knowledge and belief were necessary for the purpose of his audit and if not, the details thereof and the effect of such information on the financial statements;(b)whether, in his opinion, proper books of account as required by law have been kept by the company so far as appears from his examination of those books and proper returns adequate for the purposes of his audit have been received from branches not visited by him;(c)whether the report on the accounts of any branch office of the company audited under sub-section (8) by a person other than the company’s auditor has been sent to him under the proviso to that sub-section and the manner in which he has dealt with it in preparing his report;(d)whether the company’s balance sheet and profit and loss account dealt with in the report are in agreement with the books of account and returns;(e)whether, in his opinion, the financial statements comply with the accounting standards;(f)the observations or comments of the auditors on financial transactions or matters which have any adverse effect on the functioning of the company;(g)whether any director is disqualified from being appointed as a director under sub-section (2) of section 164;(h)any qualification, reservation or adverse remark relating to the maintenance of accounts and other matters connected therewith;(i)whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls;(j)such other matters as may be prescribed.
