1) Right to access books of accounts:
According to Section 143(1) of the Companies Act, every auditor has full rights to access books related to accounts, vouchers, and other relevant company documents at all times during his/her term of office. He also has full rights to go for surprise visits to check the entries in the books of accounts. Overall, he/she can check all the documents which are related to the company’s concern.
2) Right to make suggestions
The auditor has a right to suggest suitable modifications in methods of accounting, and if such suggestions are made, then the director should comply with them. If such compliance is not done, the auditor has full authority to report the same to the members. However, the auditor has no authority to alter the company’s accounts in his own accords.
3) Right to visit branches
As per Section 143(8) of the Companies Act, an auditor has full authority to visit the branches to check all the works related to the company’s matter. However, the auditor has no authority to visit foreign branches.
4) Right to be indemnified
Under certain conditions, a company can take civil or criminal actions against the auditor. If any legal action is taken against him, he generally defends himself against the proceedings. However, if the judgment goes in his favour means in favour of the auditor, then the company has to pay compensations for all the losses incurred by him during the proceeding. These types of rights are general rights given in most cases.
5) Right to receive remuneration
The company determines the auditor’s remuneration in the general meeting. However, when the Board of Directors appoints the company’s first auditor, they can fix his remuneration. The remuneration is in addition to the fees paid to him. It includes all expenses incurred by the auditor as a result of the audit and all facilities granted to him.
6) Right to seek legal and technical advice
Auditors are entitled to obtain expert advice on legal or technical issues at the Company’s expense. But in his report, he should express his own opinion, not that of the concerned experts.
7) Right to make representation / Right to be heard at meeting The retiring auditor has the authority to receive a copy of the special notice regarding the removal or appointment of any other person as an auditor. He/she should have all the knowledge beforehand. The retiring auditor has an absolute right to make his representation through writing and request the same to be circulated among all the members. If the same thing has not been circulated, then the representation will be read at the company’s general meeting.
8) Right to receive a notice and attend meetings
As per Section 146 of the Companies Act, an auditor has full rights to receive the notice and communications related to all the meetings during his/her term. The company should send notice to the auditor even when his audited accounts are not discussed in the meeting. As an auditor, he/she has full authority to attend the company’s meeting. He/she can also speak at the meeting if any clarification is needed for any matter related to the company’s concern.

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