AA – L2 – SA – Q4.1 – Auditor Removal Rights

Rights of an auditor proposed for removal from office.

Question

When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?

A Circulate a written statement to members

B Apply to the court to have the proposal removed

C Speak at the AGM where the removal is proposed

D Receive notification of the AGM where the removal is proposed

Answer

Explanation:
Under the Companies Act, 2019 (Act 992), an auditor proposed for removal has certain rights, including circulating a written statement to members, speaking at the Annual General Meeting (AGM) where the removal is proposed, and receiving notification of the AGM. However, the auditor is not permitted to apply to the court to have the proposal removed, as this is not a recognized right under the Act. Option B is the correct answer as it identifies an action the auditor cannot take.

Tags: Auditor Removal, Auditor Rights, Companies Act, ICAG, Regulatory Framework
Level: Level 2

Topic: Regulatory Framework and Audit Responsibilities

Uploader: Salamat Hamid