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    Question

    For removal of the auditor before his term, the approval

    of __________ is required.
    A Board of Directors Correct Answer Incorrect Answer
    B Shareholders Correct Answer Incorrect Answer
    C CAG Correct Answer Incorrect Answer
    D Central Government Correct Answer Incorrect Answer
    E All of the above Correct Answer Incorrect Answer

    Solution

    Section 140 - Removal of Auditor An auditor can be removed before the completion of his/her term by: 1.    passing a special resolution by the company and 2.    obtaining prior approval from the central government in prescribed manner ( form ADT-2 as prescribed in Rule 7 of the Companies (Audit & Auditors) Rules, 2014 along with prescribed fee) and 3.    Before being removed by the firm, the auditor is given a fair and reasonable chance of being heard

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