Current Affairs

SEBI norms dealing with Auditor Resignation

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
SEBI norms dealing with Auditor Resignation SEBI norms dealing with Auditor Resignation Reviewed by Neha Verma on October 19, 2019 Rating: 5

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