Who appoints the company primary auditor Mcq?

The board of directors shall appoint first auditor of a company5.

Who appoints the company auditor Mcq?

5. The board of directors shall appoint first auditor of a company.

Who appoints auditor of the company?

After incorporation of a company in the first annual general meeting, an Auditor must be appointed by the Board of Directors. The Auditor will typically hold term till the conclusion of 6th AGM or 5 years.

Who is responsible for the appointment of auditors of a limited company Mcq?

The appointment is done by the Comptroller and Auditor General of India. He should be appointed within 180 days from the 1st of April. The appointment is done by the members and he will hold office till the conclusion of the 6th meeting.

Who will appoint special auditor?

Hai special auditor is appointed , (1) Where the Central Government is of the opinion— (a ) that the affairs of any company are not being managed in accordance with sound business principles or prudent commercial practices; or (b ) that any company is being managed in a manner likely to cause serious injury or damage ...

Audit MCQ on Company audit ! Revision ! Multiple Choice Question In Hindi ! T.Y Bcom.

Who is responsible for the appointment of statutory auditor in a company?

The Members shall appoint the auditor in the AGM by passing of Ordinary resolution. As per section 139(1) the Company shall inform the auditor concerned of his or its appointment, and also file a notice of such appointment with the Registrar within 15 days of the meeting in which the auditor is appointed.

Who is appointed first auditor?

Section 139(6) of the Companies Act, 2013 lays down that first auditor of a company, other than a Government company, shall be appointed by the Board of Directors within 30 days from the date of registration of the company and in the case of failure of the Board to appoint such auditor, it shall inform the members of ...

Do shareholders appoint auditors?

Sections 489 to 491 restate the law on appointment of auditors of public companies, providing that auditors are generally to be appointed by shareholders by ordinary resolution in the general meeting before which the company's accounts are laid.

Who appoints the external auditor?

An External Auditor, who shall be Auditor-General (or an officer exercising an equivalent function) of a Member State, shall be appointed by the General Conference for a period determined by it.

Who is a company auditor?

An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws.

How do you appoint a new auditor?

The appointment of auditors (other than the first auditors) is required to be done by the members of the company in the general meeting. The auditor appointed at the general meeting holds office from the conclusion of that meeting, with the meeting wherein such appointment being counted as the first meeting.

Does audit committee appoint external auditors?

Audit committees of listed companies are directly responsible for the appointment, compensation, and oversight of the independent auditor, including the resolution of any disagreements with management.

How and when should an auditor be appointed?

Section 357 of the Companies and Allied Matters Act (CAMA) requires every company to appoint an Auditor or Auditors at every Annual General Meeting (AGM) by way of approval of 75% or three-quarters of the members present and voting at the AGM. Such Auditor(s) appointed at the AGM shall hold office until the next AGM.

Do directors elect auditors?

In private companies, the directors appoint the first auditor of the company. The members may then appoint or re-appoint an auditor at a meeting of the company's members, or by written resolution, within 28 days of the directors sending the accounts to the members.

How are auditors appointed and removed?

As per sub-section (1) of section 140, the auditor appointed under section 139 may be removed from his office before the expiry of his term only by a special resolution of the company, after obtaining the previous approval of the Central Government in that behalf.

Under which section a company auditor is appointed Mcq?

[D] Section 242(B).

Who must appoint the first members of the audit committee?

The audit committee members must be appointed upon incorporation by the incorporators or within 40 business days after incorporation by the board of directors. Thereafter, the audit committee must be elected at each annual general meeting.

What are the primary functions of the audit committee?

The primary purpose of a company's audit committee is to provide oversight of the financial reporting process, the audit process, the company's system of internal controls and compliance with laws and regulations.

Who sits on an audit committee?

An audit committee is made of members of a company's board of directors and oversees its financial statements and reporting. Per regulation, the audit committee must include outside board members as well as those well-versed in finance or accounting in order to produce honest and accurate reports.

What is a nomination committee?

The Nomination Committee is a body established by the Annual General Meeting with the task of preparing the election of Board members, the Chairman of the Board, and remunerations to Board members and Board committees.

Who appoints cost auditor?

The cost auditor is to be appointed by the Board of Directors on the recommendation of the Audit Committee, where the company is required to have an Audit Committee.

Who appoints auditor of State Bank of India?

iii) In terms of section 41 (i) of the SBI Act 1955, the appointment of statutory auditors of the Bank is required to be done by the RBI. Our Bank would, therefore, select SCAs/SBAs for appointment by RBI in accordance with the statutory provisions.

Who is the final auditor of the company?

Ans : The provision of Office of Auditor General has been made in section 12 of the Interim Constitution of Nepal 2063. It is responsible for final auditing of all the government offices and corporations having full investment of government.

Who is a company auditor in auditing?

An auditor is a person or a firm appointed by a company to execute an audit. To act as an auditor, a person should be certified by the regulatory authority of accounting and auditing or possess certain specified qualifications.