5. Mr. C, an Articled Clerk responsible for the audit procedures regarding the share capital, found that during the year under audit, PQ Ltd. had issued sweat equity shares amounting to ` 10 Lakhs. Which of the following statements regarding the issue of sweat equity shares are correct? (I) It can be issued to employees. (II) It can be issued to directors. (III) It can be issued at a discount. (IV) It should be of a class of shares already issued by PQ Ltd.
Options
AI & III above
BI, II & III above
AUDITING AND ETHICS
CI, II & IV above
DI, II, III & IV above
(2 Marks)
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