Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Secretarial Audit

Section 204 uses the expression 'a company belonging to other class of companies as may be prescribed'. Which reading of section 204(1) is correct?

Every listed company, and companies of other prescribed classes, must annex a secretarial audit report, given by a company secretary in practice, to the Board's report made under section 134(3). Listed status alone triggers the requirement, while other companies are covered only if prescribed.

  1. AOnly listed companies are covered, because the prescribed classes apply to the statutory auditor
  2. BEvery listed company, and companies of other prescribed classes, must annex a secretarial audit report with the Board's report under section 134(3)Correct
  3. COnly companies of prescribed classes are covered, and listed companies are exempted
  4. DEvery private company must annex the report irrespective of the class prescribed

Explanation

Section 204(1) covers every listed company and, in addition, any other class prescribed. The report is annexed to the Board's report made under section 134(3). Listed companies are not exempt, and private companies are covered only if they fall in a prescribed class.

Did you get it right without looking?

One question tells you little. A timed set on Secretarial Audit shows your real accuracy, how long you take and where you lose marks.

Practise Secretarial AuditFree diagnostic mock

More Secretarial Audit questions