Unit 3: Accounts and Auditing of the Company
3.1 Account of Companies
The accounts’ constitutional duty: the company’s money-life made visible — the Act’s discipline that every company keep-and-present its financial truth (the directors’ own responsibility (1.8’s statement) — the accounts as the board’s testimony in numbers); the accounts’ stakeholders (the shareholders’ oversight, the creditors’ protection, the state’s revenue-and-regulators, the market’s pricing (Securities Law’s disclosure — LAW5409 U4)).
3.2 Requirements of Keeping the Books of Account
The statutory books’ shelf (the exam’s list): the books of account proper (the cash-and-accrual records — the double-entry’s discipline; the Nepali-and-IFRS-compliant faces) at the registered office’s-or-the proper place; the statutory registers (the members’ register (LAW5404’s transfer faces), the directors’-and-secretaries’-and-auditors’ registers, the charges’-register, the substantial-shareholdings’ faces) — the OCR’s-and-members’ inspection rights; the minutes’ books (2.8); and the preservation’s periods (the Act’s-and-the-records-law’s floors — the destruction’s bar while the duties live). The false-and-fictitious books’ prohibition (the fraud’s documentary base — the punishment’s faces of 3.11).
3.3 Accounting Standards
The rules of the numbers’ language: the NASB’s Nepal Accounting Standards (the Nepali adaptation of the IFRS family — the NAS/NSCs’ framework) and the IFRS’s global convergence (the comparability’s promise — the cross-border investor’s dictionary); the standards’ sources-and-classes (the full-IFRS for the large-and-listed; the NFRS-for-SMEs’ lighter burden); the standards’ governance (the NASB’s issuance; the ICAN’s-and-the-OFR’s professional interfaces — the auditor’s-and-accountant’s worlds); and the standards’ legal force (the Act’s-and-SEBON’s compliance duty — the “true and fair” override’s lore: the standard’s departure only where the fair presentation demands, disclosed).
3.4 Financial Statement
The statement’s set (the exam’s anatomy): the balance sheet (the position’s photograph — the assets’-liabilities’-equity at the date); the profit-and-loss statement (the period’s film — the income-and-expenses’ flow to the profit); the cash-flow statement
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