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

Under section 177 as reproduced, what right do the auditors of a company have in relation to the Audit Committee meetings?

The auditors may be heard at Audit Committee meetings when the committee considers the auditors' report, but they cannot vote. Section 177(7) gives this right to the auditors and the key managerial personnel.

  1. AThey have a right to be heard when the committee considers the auditors' report, but no right to voteCorrect
  2. BThey have a right to vote on the auditors' report
  3. CThey have no right to attend any meeting of the committee
  4. DThey have a right to be heard and to vote on related party transactions

Explanation

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

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