Who is responsible for the appointment of statutory auditor of a limited company ?
Correct answer: C. Members of the company
- A. Directors of the company
- B. The Central Government
- C. Members of the company
- D. All of the above
Explanation
For a limited company, the statutory auditor is generally appointed by the members at the annual general meeting. The directors appoint only the first auditor in the usual case, so they are not the best answer here.
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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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