The auditor of Arc Ltd attended the meeting of Audit Committee thereof He made a statement about cer...........

Companies Act-Phase (I & II) Audit and auditors

The auditor of Arc Ltd. attended the meeting of Audit Committee thereof. He made a statement about certain pressing matters about Internal Control weaknesses. In the ensuing resolution of the Board , regarding the fortification of Internal Control through digital means, the auditor claimed he had a special right to vote under Companies Act, as he is the expert on that subject. Is he entitled to vote?

Yes, Audit Committee is required to allow auditor to vote on matters towards which he has made statements in Committee meeting

No, the Auditor has no right under Companies Act to vote at such meeting, but has right to make statement thereat.

Yes, Audit Committee is formed by default with the Auditor as a member

Yes, Auditor can cast a vote, but only if there is a tie in the number of votes

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Explanation:

The auditors of a company and the key managerial personnel shall have a right to be heard in the meetings of the Audit Committee when it considers the auditor’s report but shall not have the right to vote.