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CS Executive · Corporate Accounting and Financial Management · Introduction to Corporate Accounting

What is the minimum period for which the NFRA can debar a member or firm from being appointed as auditor after misconduct is proved?

The NFRA can debar a member or firm for a minimum period of six months, or such higher period not exceeding ten years as it determines, once professional or other misconduct is proved under Section 132(4)(c)(B).

  1. ASix monthsCorrect
  2. BOne year
  3. CTwo years
  4. DFive years

Explanation

Section 132(4)(c)(B) allows debarment for a minimum of six months or a higher period not exceeding ten years as determined by the NFRA. One year, two years and five years are not the statutory minimum.

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