The section which contains provisions regarding remuneration of the auditor is_

 Options:

a) Section 224(9) b) Section224(7) c) Section224(8) d) Section224(6)

The Correct Answer Is:

• c) Section224(8)

The correct answer regarding the section containing provisions related to the remuneration of an auditor is c) Section 224(8) in the context of Indian company law. Here’s a detailed explanation of why this answer is correct and why the other options, Sections 224(9), 224(7), and 224(6), are not applicable.

c) Section 224(8) – The Correct Answer:

Section 224(8) of the Companies Act, 2013, deals with the provisions regarding the remuneration of auditors. In this section, specific guidelines and regulations related to the auditor’s remuneration are outlined.

It specifies the remuneration of auditors, which includes various aspects such as the computation, approval, and disclosure of auditor fees. This section ensures transparency and fairness in the process of determining how much an auditor should be compensated for their services.

Section 224(8) is essential because it helps maintain the independence and integrity of auditors by ensuring that their compensation is reasonable and not influenced by the company they are auditing. This is crucial to uphold the objectivity and quality of the auditing process.

The section also contains provisions related to the appointment of auditors, their qualifications, and the standards they must adhere to while conducting audits. All of these aspects contribute to the overall effectiveness of the audit process, which is vital for ensuring the transparency and financial health of a company.

Why the Other Options are Not Correct:

a) Section 224(9):

Section 224(9) of the Companies Act, 2013, pertains to the removal of auditors before the expiry of their term. It outlines the procedures and conditions under which an auditor can be removed or replaced.

However, it does not specifically deal with the remuneration of auditors, which is the focus of the question. Section 224(9) addresses different aspects related to the appointment and removal of auditors but does not contain provisions related to their compensation.

b) Section 224(7):

Section 224(7) of the Companies Act, 2013, deals with the appointment and reappointment of auditors in the annual general meeting. It outlines the procedures and criteria for the appointment and reappointment of auditors, including their qualifications and disqualifications.

However, it does not contain provisions regarding the remuneration of auditors. This section primarily focuses on the process of selecting auditors, not the specifics of their compensation.

d) Section 224(6):

Section 224(6) of the Companies Act, 2013, addresses the eligibility criteria for individuals who can be appointed as auditors. It discusses qualifications and disqualifications for auditors and the conditions that must be met to hold the position.

While this section is relevant to the appointment of auditors, it does not contain provisions regarding their remuneration. The focus of Section 224(6) is on the qualifications and eligibility of auditors, rather than their compensation.

In conclusion, the correct section that contains provisions regarding the remuneration of auditors in the Companies Act, 2013, is Section 224(8). This section ensures that auditors are fairly compensated for their services while maintaining their independence and objectivity in the auditing process.

The other sections mentioned in the options (Sections 224(9), 224(7), and 224(6)) deal with various aspects related to auditors’ appointment, removal, qualifications, and eligibility but do not specifically address the remuneration of auditors, which was the primary focus of the question.

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