CA Inter P2 · Chapter 9 · Question 4 of 11
The auditor of Willow Ltd (not audited by the CAG) resigned mid-term. Under section 139(8), the casual vacancy:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Is filled by the Board within thirty days, and the appointment must also be approved by the company at a general meeting convened within three months of the Board's recommendation
Explanation
Section 139(8)(i) provides that a casual vacancy in a company not audited by the CAG is filled by the Board within thirty days. If the vacancy arises from the auditor's resignation, the appointment must also be approved by the company at a general meeting convened within three months of the Board's recommendation. The auditor holds office till the conclusion of the next AGM.
More Audit and Auditors MCQs
- Q6Which of the following is eligible for appointment as auditor of a company under section 141?
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- Q9Under section 143(1), the auditor of a company has the right of access to the books of account and vouchers of the company:
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