Under which Section of Companies Act. The remuneration of the Auditor has been discussed?
A. Section 224 (2)
B. Section 224 (8)
C. Section 225
D. Section 231
Answer: Option B
Solution (By Examveda Team)
Section 224(8) of the Companies Act, 1956 deals with the remuneration of auditors.According to this section, the remuneration of the auditor is determined depending on the type of appointment.
For the first auditor, the remuneration is fixed by the Board of Directors.
For subsequent auditors, the remuneration is fixed by the shareholders of the company at a general meeting or in the manner prescribed therein.
Thus, the correct section of the Companies Act, 1956 that discusses the remuneration of auditors is Section 224(8).
Note: This provision has changed in the Companies Act, 2013, where the remuneration of auditors is now dealt with under Section 142.
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Auditing and accounting are concerned with which of the following financial statements?
A. Auditing uses the theory of evidence to verify the financial information made available by accountancy
B. Auditing lends credibility dimension and quality dimension to the financial statements prepared by the accountant
C. Auditor should have a thorough knowledge of accounting concepts and convention to enable opinion on financial statements
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It's according to companies act 1956...now its has been repealed with new 2013 act. So right answer is section 142 of companies act 2013. Please update data and one more thing so answer of commerce MCQs are incorrect. Please correct all MCQs.