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Final nov 14 my audit query 1

Rajesh (Assistant Manager Finance) (89 Points)

08 September 2014

who fixes remuneration of auditor of government company if appointed by; CAG in 60 days from registration BOD in next 30 days as CAG fails Members in next 60 days - here answer would be members. who fixes remuneration of succeeding auditor as CAG appoints the same in 180 days

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Rahul (Chartered Accountnat CS) (1580 Points)
Replied 08 September 2014

As per Sec 142 of Companies act 2013, Remuneration shall IN ALL CASES be fixed by MEMBERS in GENERAL MEETINGS or in such other manner as may be determined therein.

EXCEPT- Remuneration of first auditors MAY be fixed by BOD

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Rajesh (Assistant Manager Finance) (89 Points)
Replied 08 September 2014

That is my query. First auditor mat be appointed by CAG so? if CAG fails, BOD will appoint so we can say BOD will fix the same. But how can we say that CAG has authority to appoint 1st auditor but can't fix money matters? And where money matter is not fixed, how can someone accept appointment? Right?