CAF-4 · Chapter 25 · Question 4 of 19
Financial statements generally must be audited. However, this requirement is NOT applicable to a private company if its paid-up capital does not exceed:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 10 million (or such higher amount as notified by the Commission)
Explanation
A private company is exempt from the audit requirement if its paid-up capital does not exceed Rs. 10 million, or a higher amount if notified by the Commission.
More Accounts and annual return MCQs
- Q6What is the maximum time allowed for a newly formed company to prepare its very first annual financial statements?
- Q7After a company has prepared its first financial statements, what is the deadline for preparing subsequent annual financial statements?
- Q8For a listed company, which specific quarterly financial statements are legally required to be subjected to a 'limited scope review' by…
- Q9Prior to an Annual General Meeting (AGM), what is the minimum notice period for sending the audited financial statements, auditors'…
- Q10If a company operates a branch office outside Pakistan, how does it fulfill the requirement of keeping its books of accounts at the…