New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Who appoints the auditor for a government company, and

    what is the time frame for this appointment?
    A The Board of Directors appoints the auditor within ninety days from the commencement of the financial year, and the auditor holds office till the conclusion of the annual general meeting Correct Answer Incorrect Answer
    B The Controller and Auditor-General of India appoints the auditor within sixty days from the commencement of the financial year, and the auditor holds office till the conclusion of the annual general meeting Correct Answer Incorrect Answer
    C The shareholders appoint the auditor at the annual general meeting, and the auditor holds office for the subsequent financial year Correct Answer Incorrect Answer
    D The Comptroller and Auditor-General of India appoints the auditor within one hundred and eighty days from the commencement of the financial year, and the auditor holds office till the conclusion of the annual general meeting Correct Answer Incorrect Answer
    E The State Government appoints the auditor within sixty days from the commencement of the financial year, and the auditor holds office till the conclusion of the annual general meeting Correct Answer Incorrect Answer

    Solution

    Companies Act Section 139.Appointment of auditors: (5) Notwithstanding anything contained in sub-section (1), in the case of a Government company or any other company owned or controlled, directly or indirectly, by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, the Comptroller and Auditor-General of India shall, in respect of a financial year, appoint an auditor duly qualified to be appointed as an auditor of companies under this Act, within a period of one hundred and eighty days from the commencement of the financial year, who shall hold office till the conclusion of the annual general meeting.

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