Auditing and EthicsMCQQuestion 6232 of 213
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3. With reference to reporting on the internal financial controls system under the Companies Act, 2013, which of the following does not fall within the nature of responsibility of GHB Ltd?

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — In accordance with the terms of reference specified in writing by the Board, act of every audit committee to include evaluation of internal financial controls and risk management systems.

All Options:

  • AIn accordance with the terms of reference specified in writing by the Board, act of every audit committee to include evaluation of internal financial controls and risk management systems. ✓
  • BDirectors' responsibility statement to state that the Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
  • CBoard of Directors have to appoint an expert to state that the internal financial controls of the company are commensurate with the size and nature of its business. AUDITING AND ETHICS 3 SUGGESTED ANSWER
  • DIn terms of code for Independent Directors, independent directors to get themselves satisfied that financial controls and systems of risk management are robust and defensible.

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

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