Section 228 states that the audit of a branch office of a company,
if any, must be conducted by the company's auditors. However, in case the branch
is situated outside India then the accounts of the branch can be audited either
by the company's auditors or by a person qualified to act as auditor according
to the laws of that country.
Where the accounts of any branch office are audited by a
person other than the company's auditor, the company's auditor: (a) shall be
entitled to visit the branch office, if he deems it necessary to do so for the
performance of his duties as auditor; and (b) shall have a right of access at
all times to the books and accounts and vouchers of the company maintained at
the branch office.
The branch auditor shall prepare a report on the accounts of
the branch office examined by him and forward the same to the company's
auditors who shall, in preparing the auditor's report, deal with the same in
such manner as he considers necessary.
The branch auditor shall receive such remuneration and
shall hold his appointment subject to such terms and conditions as may be fixed
either by the company in general meeting or by the Board of Directors if so
authorised by the company in general meeting.
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