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CMA Intermediate · Corporate Accounting and Auditing · Statutory Audit under the Companies Act, 2013

As per section 177 of the Companies Act, 2013, the auditors of a company and the key managerial personnel in relation to the Audit Committee meetings that consider the auditor's report have:

Auditors and key managerial personnel have a right to be heard at Audit Committee meetings when the committee considers the auditor's report, but they have no right to vote. Voting is confined to the committee members.

  1. AA right to be heard but no right to voteCorrect
  2. BA right to vote but no right to be heard
  3. CBoth a right to be heard and a right to vote
  4. DNeither a right to be heard nor a right to vote

Explanation

Section 177(7) gives the auditors and key managerial personnel a right to be heard in Audit Committee meetings when it considers the auditor's report, but they do not have the right to vote.

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