NISM Certifications · NISM-Series-XV: Research Analyst · Company Analysis - Business and Governance
Under the Indian listing framework, which committee of the board of a listed company is primarily responsible for reviewing financial statements and internal controls and recommending the appointment of the statutory auditor?
The Audit Committee is responsible for reviewing financial statements and internal controls and for recommending the appointment of the statutory auditor. Other committees such as Stakeholders Relationship, Risk Management and CSR have different mandates.
- AAudit CommitteeCorrect
- BStakeholders Relationship Committee
- CRisk Management Committee
- DCorporate Social Responsibility Committee
Explanation
The Audit Committee reviews financial statements, oversees internal financial controls and recommends the appointment, remuneration and removal of the statutory auditor. The other committees handle investor grievances, risk oversight and CSR respectively.
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