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CMA Final · Cost and Management Audit · Operational Audit and Internal Audit under Companies Act, 2013

Which of the following is stated in Section 177 as a right of the statutory auditors and key managerial personnel in relation to Audit Committee meetings?

Auditors and key managerial personnel have a right to be heard at Audit Committee meetings when the committee considers the auditors report, but they cannot vote. Voting belongs only to the committee's members.

  1. ARight to vote on the auditor's report
  2. BRight to be heard when the Committee considers the auditor's report, without a right to voteCorrect
  3. CRight to chair the meeting when the auditor's report is discussed
  4. DRight to appoint the Audit Committee members

Explanation

Section 177(7) gives the auditors and key managerial personnel a right to be heard in Audit Committee meetings when it considers the auditors report, but no right to vote. Voting is reserved to the Committee members.

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