CS Professional · Internal and Forensic Audit · Internal Controls
Under section 177 of the Companies Act, 2013, which of the following is expressly included in the terms of reference of the Audit Committee that links to IFC?
Section 177 includes evaluation of internal financial controls and risk management systems in the Audit Committee's terms of reference. The committee does not declare dividends or fix key managerial personnel remuneration under this provision, so the evaluation of internal financial controls is the correct item.
- AAppointing the internal financial controls auditor at the general meeting
- BEvaluation of internal financial controls and risk management systemsCorrect
- CApproving the declaration of final dividend
- DFixing the remuneration of key managerial personnel
Explanation
Section 177(4)(vii) lists evaluation of internal financial controls and risk management systems among the Audit Committee's terms of reference. The other tasks are not listed there.
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