What do you mean by auditors lien?

Amol S Joglekar (Expert) 09 November 2016 it is the right of a person to retain the property of other person in his possession. For non payment of audit fees, the auditor may retain the books of accounts of the auditee with him. This is said to be lien on books of accounts.

What lien means?

Definition of lien 1 : a charge upon real or personal property for the satisfaction of some debt or duty ordinarily arising by operation of law The bank had a lien on our house. 2 : the security interest created by a mortgage the lien of a mortgage.

What are liens in accounting?

A lien is a claim or legal right against assets that are usually used as collateral to satisfy a debt. The creditor may be able to seize the asset that is the subject of the lien.

What does liens mean in law?

A security interest or legal right acquired in one’s property by a creditor. A lien generally stays in effect until the underlying obligation to the creditor is satisfied. If the underlying obligation is not satisfied, the creditor may be able to take possession of the property involved.

How many types of liens are there?

The Indian Contract Act, 1872 classifies the Right of Lien into two types: Particular Lien and General Lien.

On which documents auditors can have lien?

The auditor can exercise his lien on client’s books and records subject to the following conditions: -Document retained must belong to the client who owes the money. -Such documents must have come into auditor’s possession with the client’s authority.

What is another word for lien?

synonyms for lien

  • charge.
  • claim.
  • hold on property.
  • security on property.

What are the types of lien?

Types of Lien

  • Possessory Lien.
  • Equitable Lien.
  • Maritime Lien.

What is lien and its types?

The three main types of lien are bank, real estate and tax. When it comes to property, the contract on the property needs to be paid. In case the contract is not paid, the lender has the legal right to seize the property as well as to sell the property.

Does an auditor have the right of lien?

however, as per section 143 of companies act, an auditor can exercise right of lien on BOA for non payment of fees.

Who has the right of lien on audit working papers?

The auditor can exercise his lien on client’s books and records subject to the following conditions: (a) Document retained must belong to the client who owes the money. authority. (c) Some work must have been done and fees for work performed must be outstanding.

Is lien a charge?

Clause 16 of section 2 of the Act states that “charge” means an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage. A charge includes a lien and also an equitable charge.