Auditing

171. Which of the following is not true regarding requirements under section 227(3) (f) of the Companies Act, 1956?

A. The auditor has to satisfy himself whether any of the directors of the company, whether public or private, are disqualified from being appointed as directors as per section 274(1) (g).
B. Section 274(1) (g) is applicable to appointment of directors both in public and private companies but reporting is limited to only those directors of a company who are also directors of a public company
C. The auditor requires every director to submit a written representation in respect of each Public company, of which the is a director, as to whether such company has defaulted in terms of provisions of sections 274(1) (g)
D. The disqualification should be considered on the date of audit report.
✅ The correct answer is option D.

178. The auditor has a right to

A. Obtain information and explanation
B. Obtain information and explanation from the employees and officers
C. Obtain information and explanation necessary for the purpose of audit
D. Both (b) and (c)
✅ The correct answer is option D.
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