The board of directors shall appoint first auditor of a company
Correct answer: D. With in one month of incorporation of the company Get Executive Coaching
- A. With in one month of completion of capital subscription state of the company
- B. With in one month of the promotion of the company
- C. With in one month of the commencement of the business of the company
- D. With in one month of incorporation of the company Get Executive Coaching
Explanation
Under company law, the directors must appoint the first auditor within 30 days of the company’s incorporation. If they fail, the members appoint the auditor in a general meeting.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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The term of the auditor ship of first auditor would be from the date of appointment till________?
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