Knowee
Questions
Features
Study Tools

The board of directors shall appoint the first auditor of a company A. Within one month of incorporation of the company B. Within one month of completion of capital subscription state of the company C. Within one month of the commencement of the business of the company D. Within one month of the promotion of the company

Question

The board of directors shall appoint the first auditor of a company A. Within one month of incorporation of the company B. Within one month of completion of capital subscription state of the company C. Within one month of the commencement of the business of the company D. Within one month of the promotion of the company

🧐 Not the exact question you are looking for?Go ask a question

Solution 1

The question seems to be asking when the board of directors should appoint the first auditor of a company. Here are the interpretations of each option:

A. Within one month of incorporation of the company: This means that the first auditor should be appointed within one month after the company has been legally formed.

B. Within one month of completion of capital subscription state of the company: This suggests that the first auditor should be appointed within one month after the company has completed its capital subscription stage, which is when it has raised the necessary funds for its operations.

C. Within one month of the commencement of the business of the company: This implies that the first auditor should be appointed within one month after the company has started its business operations.

D. Within one month of the promotion of the company: This suggests that the first auditor should be appointed within one month after the company has been promoted.

The correct answer would depend on the specific laws and regulations in your jurisdiction. In some places, the first auditor is appointed at the first annual general meeting of the shareholders. It's best to consult with a legal expert or refer to the specific laws governing companies in your area.

This problem has been solved

Solution 2

The board of directors shall appoint the first auditor of a company:

A. Within one month of incorporation of the company: This means that the first auditor should be appointed within a month after the company has been legally recognized or established.

B. Within one month of completion of capital subscription state of the company: This implies that the first auditor should be appointed within a month after the company has completed its capital subscription stage, which is when it has raised the necessary funds for its operations.

C. Within one month of the commencement of the business of the company: This suggests that the first auditor should be appointed within a month after the company has started its business operations.

D. Within one month of the promotion of the company: This indicates that the first auditor should be appointed within a month after the company has been promoted. This could refer to a variety of situations, such as the company being promoted to a higher status or the company launching a promotional campaign.

This problem has been solved

Similar Questions

The Companies Act, 2013 mandates the appointment of an auditor for every company within how many days from the date of incorporation?a.30 daysb.60 daysc.90 daysd.120 days

A company auditor can be removed before expiry of his term by A. State Government B. Board of Directors C. Shareholders D. Central Government

Discuss the procedure for the incorporation of companies under the Companies Act.

Which of the following is least likely a procedure that would be performed by the auditor near the auditor's report date?Select one:a.Reading the minutes of the meetings of shareholders, the board of directors and audit executive committees held throughout the audit year.b.Reading the entity's latest available interim financial statements.c.Audit of subject matter informInquiring of the client's legal counsel concerning litigations and claims.d.Reviewing the procedures that management has established to ensure that subsequent events are identified.

The independent auditor's primary responsibility is to A. the shareholders B. the directors C. the company's creditors (payables) D. the company's bank

1/2

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.