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CS Professional · Internal and Forensic Audit · Forensic Audit: Laws and Regulations

The Central Government is appointing the Director of the Serious Fraud Investigation Office. As a forensic auditor advising on the framework, which statement correctly reflects Section 211 of the Companies Act, 2013?

The Director is appointed by the Central Government through notification and must be an officer not below the rank of Joint Secretary to the Government of India with knowledge and experience in corporate affairs. The section does not require a chartered accountant, election by experts, or appointment by the Tribunal.

  1. AThe Director must be a chartered accountant in practice with forensic audit experience
  2. BThe Director is appointed by notification and must be an officer not below the rank of Joint Secretary with knowledge and experience in corporate affairsCorrect
  3. CThe Director is elected by the experts of the Office from among themselves
  4. DThe Director is appointed by the National Company Law Tribunal on the Registrar's recommendation

Explanation

Section 211(3) says the Central Government appoints the Director by notification, and the Director must be an officer not below the rank of Joint Secretary having knowledge and experience in dealing with corporate affairs. The other options invent qualifications or appointing authorities not found in the section.

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