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Clause of (xiii) of Para 3 of CARO, 2016

Auditing

It states that auditor shall report "whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act 2013" Sir, my question is what relation does Related party have to do with "Audit Committee" sec 177?

Kumarjit Dey

CA Inter

★ 4K+

13-Nov-20 12:32

305

Answers (5)

Best Answer

Who in the company will authorise all related party transactions. Will management ( or a related party) themselves authorise their own transactions. Such transactions need to done under approval of those charged with governance. Companies act, gives that responsibility to the Audit Committee. The concerned clause of CARO is checking if all such approvals are in place