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CMA Intermediate · Corporate Accounting and Auditing · Secretarial Audit

Under section 204 of the Companies Act, 2013, the secretarial audit report of a listed company must be given by which professional and where must it be placed?

The secretarial audit report must be given by a company secretary in practice and annexed to the Board's report made under section 134(3). Section 204(1) specifies this professional and this placement, so a chartered accountant, cost accountant or in-house secretary does not satisfy the requirement.

  1. AA chartered accountant in practice, annexed to the auditor's report
  2. BA company secretary in practice, annexed to the Board's reportCorrect
  3. CA cost accountant in practice, annexed to the cost audit report
  4. DThe company's whole-time company secretary, annexed to the notice of the general meeting

Explanation

Section 204(1) requires a listed company to annex with its Board's report (made under section 134(3)) a secretarial audit report given by a company secretary in practice in the prescribed form. The option naming a chartered accountant is wrong because the profession specified is company secretary in practice, not an accountant. An in-house company secretary is also not the person specified.

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