BANK SEBI Grade A Phase 1 & Phase 2 Mock Test 2024 Legal Aspects of Business The Companies Act, 2013
Per the guidelines in Section 142, by which method is auditor remuneration decided, and what implications can this decision have on financial statement integrity and auditor independence?
1
By board resolution, ensuring quick response, potentially compromising independence.
2
By CEO's discretion, aligning with company's short-term goals, may impact impartiality.
3
By majority shareholder vote at AGM, ensuring collective agreement, encourages transparency.
4
By CFO's recommendation, integrates financial strategies, might affect objectivity.
5
By regulatory approval, enforces standardization, ensures compliance and integrity.