SEBI norms dealing with Auditor Resignation

Published on October 19, 2019
Current context: The Security and Exchange Board of India (SEBI) has tightened the disclosure norms dealing with resignations of statutory auditors in listed companies.
SEBI norms dealing with Auditor Resignation
  • As per the new norm, if the auditor resigns within 45days from the end of the quarter in a Financial Year, the auditor has to issue the audit report for such a quarter before the resignation.
  • Resigning after 45days of the quarter will require the auditor to issue the audit report for such a quarter as well.
  • The auditor shall have to issue the audit report for the last quarter before resignation if he has signed the audit report for the first three quarters of a financial year.
  • SEBI has said that in case of non-availability of information or non-cooperation by the management in the audit process, the auditor should approach the chairman of the audit committee.
  • The step is taken in the view of many instances of auditors resigning in an abrupt manner.

Question: 

Q.1 As per the new norms of SEBI, if the auditor resigns after____ days from the end of the quarter in a Financial Year, the auditor has to issue the audit report for such a quarter as well? 
a. 15 days
b. 30 days
c. 45 days
d. 50 days
e. None of the above

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