CA Inter P2 · Chapter 9 · Question 3 of 11
Fern Ltd is a non-government company. Under section 139(6), its first auditor must be appointed by the Board within thirty days of registration. If the Board fails to do so, the members must appoint the first auditor:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Within ninety days at an extraordinary general meeting
Explanation
Under section 139(6), the first auditor of a non-government company is appointed by the Board within thirty days of registration. If the Board fails, it must inform the members, who appoint the auditor within ninety days at an extraordinary general meeting. The first auditor holds office till the conclusion of the first AGM.
More Audit and Auditors MCQs
- Q5Under section 140(1), an auditor appointed under section 139 may be removed from office before the expiry of his term only by:
- Q6Which of the following is eligible for appointment as auditor of a company under section 141?
- Q7Under section 141(3)(g), a chartered accountant is disqualified from being appointed auditor of a company if, at the date of appointment…
- Q8Under section 144, which of the following services can a company's statutory auditor provide to it, with approval of the Board or audit…
- Q9Under section 143(1), the auditor of a company has the right of access to the books of account and vouchers of the company: