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True / false

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C & AG orders to conduct test audit of the Accounts of a Government company .... ?
Replies (6)

correct the statement

 

why ..... ? C& AG conduct test audit and also comment on same on test audit
supplementary / Test Audit .... both are same ....

True statement...,

The Companies Act, 1956 empowers the Comptroller and Auditor General of India to:

􀀠 appoint/ re-appoint the auditors of a Government Company;

􀀠 direct the manner in which accounts shall be audited;

􀀠 give such instructions to the auditors in regard to any matter relating to audit;

􀀠 to conduct a supplementary or test audit of the accounts; and

􀀠 to comment upon or supplement the audit report of the statutory auditors.

Correct Statement.
.
Reason: As per section 143(7) of the Companies Act, 2013, C&AG is authorised to conduct supplementary or test audit in the case of a government company.

Correct statement as C&AG can conduct supplementary audit but it has to be conducted within 60 days of receiving audit report from the auditor


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