Question

The authority to remove the first auditor before the expiry of terms is with ___________.

• A. the shareholders in a general meeting
• B. the shareholders in the first annual general meeting
• C. the Central Government
• D. the Board of Directors

Answer 1

Answer: (D)

the Board of Directors

Audit means the examination of books of account undertaken with a view to ensure that the company is providing a true and fair view of its financial position.

As per Companies Act 2013, Auditor's appointment is done by the board of directors for a minimum of 5 years.

Section 140 of the Companies Act provides the rule for removal of the auditors before the expiry of term. This has to be done by passing a special resolution and approval of the Board of Directors.