ethics civics MCQ #376

External audit of the accounts of a limited company is required:

ethics civics MCQ #376

  1. Question 1

    Q1. External audit of the accounts of a limited company is required:

    • A) because it is demanded by the company's bankers
    • B) by the Companies Act 2013
    • C) at the discretion of the shareholders
    • D) to detect fraud

    Answer: by the Companies Act 2013

    Explanation: The Companies Act 2013 (India) legally mandates the external audit of a limited company's accounts to ensure transparency, accountability, and protection of shareholder interests.