CS Professional · Compliance Management, Audit and Due Diligence · Concepts of Various Audits
Vihaan Logistics Ltd, a listed company, appoints a practising company secretary to check its compliance with the Companies Act, applicable SEBI regulations and other laws, and to report to members. Which audit is this?
This is a secretarial audit, because a practising company secretary verifies compliance with the Companies Act, SEBI regulations and other applicable laws and reports to members. Internal, cost and efficiency audits serve different purposes.
- ASecretarial auditCorrect
- BInternal audit
- CCost audit
- DEfficiency audit
Explanation
Secretarial audit checks compliance with company law, securities laws and other specified applicable laws, and is carried out by a practising company secretary who reports to members. Internal audit is for management, cost audit relates to cost records, and efficiency audit assesses efficiency.
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