The correct answer is c) Section 228(4). This answer is correct because Section 228(4) of the Companies Act, 2013 in India specifies the right of the auditor to visit the branches of a company. This section outlines the auditor’s authority to access and examine the books, accounts, and vouchers of the company’s branches as part of the audit process, ensuring transparency and accuracy in financial reporting.

Now, let’s delve into the details of why this answer is correct and why the other options are not:

c) Section 228(4):

Section 228(4) of the Companies Act, 2013, states that:

“The auditor shall have a right of access at all times to the books of account and vouchers of the company, whether kept at the head office of the company or at any other place, and shall be entitled to require from the officers of the company such information and explanation as the auditor may think necessary for the performance of his duties.”

This provision clearly grants the auditor the right to access the books of account and vouchers of the company at its head office or any other location, which includes the branches. It also empowers the auditor to request information and explanations from the company’s officers to carry out their audit effectively.

This is a critical aspect of the audit process, as it ensures the auditor’s ability to thoroughly review the company’s financial records, including those at various branches, to provide an accurate assessment of the company’s financial position and compliance with legal requirements.

Now, let’s explore why the other options are not correct:

a) Section 222(3):

Section 222(3) of the Companies Act, 2013, pertains to the rotation of auditors. It does not grant auditors the specific right to visit branches. Instead, it deals with the rotation of auditors for companies and the criteria for appointment and reappointment of auditors.

b) Section 228(2):

Section 228(2) of the Companies Act, 2013, relates to the requirement of the auditor to make a report to the members of the company on the accounts examined by them and on the financial statements. This section does not address the auditor’s right to visit branches.

d) Section 228(3):

Section 228(3) of the Companies Act, 2013, stipulates that the auditor’s report shall state whether the company has kept proper books of account and records. It deals with the auditor’s responsibility to assess the maintenance of proper financial records by the company but does not explicitly grant the right to visit branches.

In summary, the correct answer is c) Section 228(4) because this section explicitly grants auditors the right to access the books of account and vouchers of the company, whether they are kept at the head office or any other location, including branches. This access is crucial for auditors to perform their duties effectively and ensure the accuracy of financial reporting.

The other options (a, b, and d) are not correct because they pertain to different aspects of audit and reporting but do not specifically address the auditor’s right to visit branches, as Section 228(4) does. It is essential for auditors to be aware of their rights and responsibilities under the Companies Act to carry out audits in accordance with legal requirements and ethical standards.