CAF-8 · Chapter 1 · Question 10 of 10
A statutory audit is mandated by law. According to the Companies Act 2017, what happens if a company fails to appoint its first auditor within the prescribed time?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The Securities and Exchange Commission of Pakistan (SECP) shall appoint the auditor.
Explanation
If a company fails to appoint an auditor at incorporation, in an AGM, or to fill a casual vacancy, the Commission (SECP) has the power to appoint the auditor.
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