CS Professional · Compliance Management, Audit and Due Diligence · Compliance Framework
Meridian Pharma Ltd's secretarial audit report, prepared by a company secretary in practice, contains a qualification about delayed filing of a return. How must the Board deal with this in its report under section 134?
The Board must include its explanations or comments on every qualification, reservation, adverse remark or disclaimer in the secretarial audit report, just as it must for the statutory auditor's report. Section 134(3)(f) covers both reports.
- AThe Board need not respond because secretarial audit qualifications concern only the secretarial auditor
- BThe Board must give explanations or comments on the qualification, reservation or adverse remark in the Board's reportCorrect
- CThe Board must report it only to the Central Government
- DThe Board must respond only to qualifications made by the statutory auditor
Explanation
Section 134(3)(f) requires the Board's report to include explanations or comments on every qualification, reservation, adverse remark or disclaimer made by the auditor and by the company secretary in practice in the secretarial audit report. The statutory-auditor-only option wrongly omits clause (f)(ii).
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