Accounting · Company Audit
Which of the following statements is incorrect with respect to the obligations and penalties under Section 147 of the Companies Act, 2013?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1In the event of the conviction of an auditor, he shall be liable to refund the remuneration received by him to the company.
- 2Every officer of the defaulting company shall be punishable with imprisonment for a term which may extend to one year, or with a fine which may extend to one lakh rupees, or with both.
- 3If the auditor of a company contravenes any of the provisions of Section 139, the auditor shall be punished with a fine which shall not be less than Rs. 50,000 to a maximum of Rs. 5 lakh [or four times the remuneration of the auditor, whichever is less].✓
- 4The company can be punished with a fine of Rs. 25,000 to Rs. 5 lakh.
Correct answer
If the auditor of a company contravenes any of the provisions of Section 139, the auditor shall be punished with a fine which shall not be less than Rs. 50,000 to a maximum of Rs. 5 lakh [or four times the remuneration of the auditor, whichever is less].
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