Under Section 141(3)(d) of the Companies Act 2013, what is the monetary limit of relative holding of securities that disqualifies a person from being appointed as an auditor?

A person is disqualified if they or their partner holds ANY security in the company/subsidiary/holding/associate, OR if their relative holds security or interest of face value exceeding Rs. 1,00,000 (if exceeded, corrective action must be taken within 60 days).

Under SA 500 and SA 505, what is the difference between Positive and Negative External Confirmations, and when can Negative Confirmation be used as the sole substantive procedure?

Positive confirmation asks the third party to reply in all cases; Negative confirmation asks for a reply ONLY if the party disagrees. Negative confirmation is less persuasive and may be used as the sole substantive procedure only when RMM is low, the population consists of a large number of small homogeneous balances, a very low exception rate is expected, and the auditor is unaware of circumstances causing recipients to disregard requests.

Under Section 103 of the Companies Act 2013, what is the statutory Quorum for a General Meeting of a Public Company and a Private Company?

Private Company: 2 members personally present. Public Company: 5 members personally present if total members 1,000 and 5,000.

Under Section 52 of the Companies Act 2013, for what 5 specific purposes can the Securities Premium Account be utilized?

1) Issuing fully paid bonus shares to members, 2) Writing off preliminary expenses of the company, 3) Writing off expenses/commission/discount on issue of shares or debentures, 4) Providing for premium payable on redemption of redeemable preference shares or debentures, 5) Buy-back of shares under Section 68.

Under SA 701 (Communicating Key Audit Matters - KAM) and SA 706 (Emphasis of Matter - EOM vs Other Matter - OM), how do KAM, EOM, and OM differ?

KAM (SA 701 - mandatory for listed entities): Matters of most significance in the audit communicated to TCWG. EOM (SA 706): Refers to a matter appropriately presented/disclosed in the financial statements that is fundamental to users' understanding. OM (SA 706): Refers to a matter NOT presented/disclosed in the financial statements that is relevant to understanding the audit.

In the Indian Contract Act 1872, what is the legal difference between a Contract becomes Void vs Void ab initio in the case of a Minor's Agreement (Mohori Bibee v. Dharmodas Ghose)?

A contract with a minor is altogether 'void ab initio' (null from the very beginning), cannot be ratified upon attaining majority, the rule of estoppel does not apply against a minor, and a minor can be a beneficiary/promisee or admitted to the benefits of partnership (Sec 30 of Partnership Act).

Under Section 68 of the Companies Act 2013, what are the key conditions and limits for Buy-Back of Shares?

Up to 10% of total paid-up equity capital + free reserves can be authorized by a Board Resolution; up to 25% of aggregate paid-up capital + free reserves requires a Special Resolution (and max 25% of equity shares in any financial year). Post buy-back debt-to-equity ratio must not exceed 2:1, and a cooling period of 1 year applies between two buy-backs.

Under Clause (i) and Clause (vii) of CARO 2020, what are the key reporting requirements regarding Property, Plant & Equipment (PPE) revaluation and Undisputed Statutory Dues?

Clause (i): Report whether the company has revalued its PPE (including Right of Use assets) or intangible assets by 10% or more in the aggregate of the net carrying value of each class. Clause (vii): Report undisputed statutory dues (GST, PF, ESI, Income Tax) in arrears for a period of more than 6 months from the date they became payable as on the balance sheet date.

Under CARO 2020 (Companies Auditor's Report Order, 2020), which companies are exempt from CARO 2020 reporting?

1) Banking Co., 2) Insurance Co., 3) Section 8 Co., 4) One Person Company (OPC), 5) Small Company, and 6) A Private Limited Company (not being a subsidiary or holding of a public company) having Paid-up capital + reserves <= Rs. 1 Crore, Total Borrowings <= Rs. 1 Crore at any point during the FY, AND Total Revenue <= Rs. 10 Crore.

Under the Limited Liability Partnership (LLP) Act 2008, what are the requirements for Designated Partners (Section 7)?

Every LLP must have at least 2 Designated Partners who are individuals, and at least one of them must be resident in India (stayed in India for not less than 120 days during the financial year).

Under the Indian Contract Act 1872, how do Fraud (Sec 17) and Misrepresentation (Sec 18) differ from Coercion (Sec 15) and Undue Influence (Sec 16), and what is their effect?

All four render the contract voidable at the option of the aggrieved party (Sec 19 & 19A). Coercion involves committing/threatening an act forbidden by IPC or unlawful detaining of property; Fraud involves intentional deception (allows rescission + damages), whereas Misrepresentation is an innocent false statement without intent to deceive.

Under SA 210 (Agreeing the Terms of Audit Engagements), when can an auditor accept a change in the terms of the audit engagement to a lower level of assurance?

Only if there is a 'reasonable justification' (such as a change in circumstances affecting the entity's requirements or a misunderstanding concerning the nature of the service originally requested), and NOT to avoid a qualified opinion or scope limitation.

Under Section 2(85) of the Companies Act 2013 (as amended), what are the revised paid-up capital and turnover limits for a 'Small Company'?

A company (other than a public company) whose paid-up share capital does not exceed Rs. 4 Crore AND turnover as per the profit and loss account for the immediately preceding financial year does not exceed Rs. 40 Crore (excluding holding/subsidiary, Section 8, or special Act companies).

Under Section 139(2) of the Companies Act 2013, what are the rules for Rotation of Auditors and which companies are covered?

Applicable to all listed companies, unlisted public companies with paid-up capital >= Rs. 10 Cr, private companies with paid-up capital >= Rs. 50 Cr, or any company with public borrowings/deposits >= Rs. 50 Cr. Individual auditor max 1 term of 5 consecutive years; Audit firm max 2 terms of 5 consecutive years each, followed by a 5-year cooling-off period.

Under Section 135 of the Companies Act 2013, when is Corporate Social Responsibility (CSR) mandatory and what is the minimum spending requirement?

Applicable to every company having during the immediately preceding financial year: 1) Net Worth >= Rs. 500 Crore, OR 2) Turnover >= Rs. 1,000 Crore, OR 3) Net Profit >= Rs. 5 Crore. The company must spend at least 2% of the average net profits made during the 3 immediately preceding financial years.

Under SA 315 and SA 320, what is Performance Materiality and how is it used by the auditor?

Performance Materiality (SA 320) is the amount set by the auditor at LESS than materiality for the financial statements as a whole, to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality.

Under SA 230 (Audit Documentation), what is the mandatory assembly period and retention period for audit working papers?

Audit file assembly must be completed within not more than 60 days after the date of the auditor's report (SQC 1), and audit documentation must be retained for a minimum of 7 years from the date of the auditor's report.

Under the Foreign Exchange Management Act (FEMA) 1999, how is a 'Person Resident in India' (PRI) defined under Section 2(v)?

A person residing in India for more than 182 days during the course of the preceding financial year, EXCLUDING someone who has gone out of India for employment, business/vocation, or with an intention to stay outside India for an uncertain period (and vice versa for coming into India).

Under the Indian Contract Act 1872, what is the rule 'No Consideration, No Contract' (Section 25) and what are its key statutory exceptions?

An agreement without consideration is void, EXCEPT: 1) Written & registered agreement out of natural love and affection between parties in near relation, 2) Promise to compensate past voluntary services, 3) Written & signed promise to pay a time-barred debt, 4) Completed gifts, 5) Creation of Agency (Sec 185), 6) Charity if liability is incurred on the faith of the promise.

Under SA 560 (Subsequent Events), how does an auditor treat events occurring between the date of the financial statements and the date of the auditor's report?

The auditor must perform audit procedures designed to obtain sufficient appropriate audit evidence that all events occurring up to the date of the auditor's report that require adjustment of (Type I) or disclosure in (Type II) the financial statements have been identified.

In ICAI Auditing, what are the objectives of the Overall Auditor under SA 200 and the concept of Audit Risk?

Under SA 200, the auditor's objective is to obtain reasonable assurance whether financial statements are free from material misstatement (due to fraud or error). Audit Risk = Inherent Risk x Control Risk x Detection Risk (where Inherent Risk x Control Risk = Risk of Material Misstatement, RMM).

Under the Indian Contract Act 1872, how does a Contract of Indemnity (Sec 124) differ from a Contract of Guarantee (Sec 126)?

Indemnity has 2 parties (Indemnifier & Indemnified) with 1 primary contingent contract to save from loss; Guarantee has 3 parties (Surety, Principal Debtor, Creditor) with 3 collateral contracts where the Surety's liability is secondary and co-extensive with that of the Principal Debtor (Sec 128).

Under FEMA 1999 and the Liberalised Remittance Scheme (LRS), what is the annual limit for Current/Capital Account remittances by resident individuals and which schedules govern Current Account transactions?

Under LRS, resident individuals (including minors) can freely remit up to USD 2,50,000 per financial year for permissible current or capital account transactions. Schedule I: Prohibited transactions (e.g., lottery, racing); Schedule II: Requires Central Govt approval; Schedule III: Requires RBI approval beyond USD 2,50,000.

Under SA 240 (The Auditor's Responsibilities Relating to Fraud), how is management fraud distinguished from employee fraud regarding detection risk?

The risk of not detecting a material misstatement resulting from fraud is higher than from error (due to concealment/collusion), and the risk of not detecting management fraud is greater than employee fraud because management is in a position to override internal controls.

Under Section 96 of the Companies Act 2013, what are the statutory timelines for holding the First AGM and Subsequent Annual General Meetings (AGMs)?

First AGM: Within 9 months from the closing of the first financial year (no extension by RoC). Subsequent AGMs: Within 6 months from the close of the financial year (by 30th September), with a maximum gap of 15 months between two AGMs (RoC may extend by up to 3 months for special reasons).

Under Section 180(1)(c) of the Companies Act 2013, when does the Board of Directors require a Special Resolution in a General Meeting to borrow money?

When the money to be borrowed, together with the money already borrowed by the company (excluding temporary loans obtained from the company's bankers in the ordinary course of business), exceeds the aggregate of its paid-up share capital, free reserves, and securities premium.

Under Section 2(62) and Incorporation Rules of the Companies Act 2013, what are the eligibility and conversion rules for a One Person Company (OPC)?

Only a natural person who is an Indian citizen (whether resident in India—stayed >= 120 days in the preceding financial year—or otherwise) can form an OPC. An OPC cannot carry out NBFC investment activities or convert into a Section 8 company; mandatory paid-up capital/turnover threshold for conversion into a private/public company has been removed.

What is the Doctrine of Ultra Vires (Ashbury Railway Carriage Co. v. Riche) vs the Doctrine of Indoor Management (Royal British Bank v. Turquand)?

Doctrine of Ultra Vires: Any act beyond the objects clause of the Memorandum of Association (MoA) is wholly void and cannot be ratified even by unanimous shareholder consent. Doctrine of Indoor Management (Turquand Rule): Outsiders dealing with a company in good faith are entitled to assume that internal procedural regularities required by the Articles (AoA) have been complied with.

Under Section 149(1) of the Companies Act 2013, what are the minimum and maximum number of directors and the Woman Director / Independent Director requirements?

Min directors: 3 (Public), 2 (Private), 1 (OPC); Max: 15 (can be increased by Special Resolution). Woman Director is mandatory for every listed company and public companies with paid-up capital >= Rs. 100 Cr or turnover >= Rs. 300 Cr. Listed public companies must have at least 1/3rd Independent Directors.

Under SA 570 (Going Concern), what is the impact on the Auditor's Report when a Material Uncertainty Exists regarding Going Concern?

1) If Going Concern basis is appropriate and adequate disclosure of material uncertainty is made -> Unmodified Opinion with a separate section 'Material Uncertainty Related to Going Concern'. 2) If adequate disclosure is NOT made -> Qualified or Adverse Opinion. 3) If financial statements are prepared on Going Concern basis when it is inappropriate -> Adverse Opinion.

Under SA 700, SA 705, and SA 706, what is the decision matrix for choosing between a Qualified Opinion, Adverse Opinion, and Disclaimer of Opinion?

Under SA 705: Material but NOT Pervasive -> Qualified Opinion (for both Material Misstatement and Inability to obtain SAAE). Material AND Pervasive: Financial statements are materially misstated -> Adverse Opinion; Unable to obtain sufficient appropriate audit evidence (SAAE) -> Disclaimer of Opinion.

Under the Negotiable Instruments Act 1881, what are the essential requirements and timelines for dishonour of a cheque for insufficiency of funds under Section 138?

1) Cheque presented within validity period (3 months), 2) Payee issues written demand notice within 30 days of receiving bank return memo, 3) Drawer fails to make payment within 15 days of receipt of notice, 4) Complaint filed before Magistrate within 1 month of expiry of the 15-day notice period. Punishment: up to 2 years imprisonment or fine up to twice the cheque amount or both.

ICAI CA Foundation & Intermediate (Corporate Law & Auditing): Companies Act 2013, Indian Contract Act 1872, FEMA, LLP Act & Standards on Auditing (SAs)

High-yield statutory provisions of the Companies Act 2013, Indian Contract Act 1872, LLP Act 2008, FEMA 1999, and ICAI Standards on Auditing (SAs) for CA Foundation and CA Intermediate.

Level: intermediate
Languages: en → en
Cards: 32
Markdown: ICAI CA Foundation & Intermediate (Corporate Law & Auditing): Companies Act 2013, Indian Contract Act 1872, FEMA, LLP Act & Standards on Auditing (SAs) (.md)

Flashcards (32)

#	Front (Term / Question)	Back (Definition / Answer)
1	Under Section 141(3)(d) of the Companies Act 2013, what is the monetary limit of relative holding of securities that disqualifies a person from being appointed as an auditor?	A person is disqualified if they or their partner holds ANY security in the company/subsidiary/holding/associate, OR if their relative holds security or interest of face value exceeding Rs. 1,00,000 (if exceeded, corrective action must be taken within 60 days).
2	Under SA 500 and SA 505, what is the difference between Positive and Negative External Confirmations, and when can Negative Confirmation be used as the sole substantive procedure?	Positive confirmation asks the third party to reply in all cases; Negative confirmation asks for a reply ONLY if the party disagrees. Negative confirmation is less persuasive and may be used as the sole substantive procedure only when RMM is low, the population consists of a large number of small homogeneous balances, a very low exception rate is expected, and the auditor is unaware of circumstances causing recipients to disregard requests.
3	Under Section 103 of the Companies Act 2013, what is the statutory Quorum for a General Meeting of a Public Company and a Private Company?	Private Company: 2 members personally present. Public Company: 5 members personally present if total members <= 1,000; 15 members if total members > 1,000 and <= 5,000; 30 members if total members > 5,000.
4	Under Section 52 of the Companies Act 2013, for what 5 specific purposes can the Securities Premium Account be utilized?	1) Issuing fully paid bonus shares to members, 2) Writing off preliminary expenses of the company, 3) Writing off expenses/commission/discount on issue of shares or debentures, 4) Providing for premium payable on redemption of redeemable preference shares or debentures, 5) Buy-back of shares under Section 68.
5	Under SA 701 (Communicating Key Audit Matters - KAM) and SA 706 (Emphasis of Matter - EOM vs Other Matter - OM), how do KAM, EOM, and OM differ?	KAM (SA 701 - mandatory for listed entities): Matters of most significance in the audit communicated to TCWG. EOM (SA 706): Refers to a matter appropriately presented/disclosed in the financial statements that is fundamental to users' understanding. OM (SA 706): Refers to a matter NOT presented/disclosed in the financial statements that is relevant to understanding the audit.
6	In the Indian Contract Act 1872, what is the legal difference between a Contract becomes Void vs Void ab initio in the case of a Minor's Agreement (Mohori Bibee v. Dharmodas Ghose)?	A contract with a minor is altogether 'void ab initio' (null from the very beginning), cannot be ratified upon attaining majority, the rule of estoppel does not apply against a minor, and a minor can be a beneficiary/promisee or admitted to the benefits of partnership (Sec 30 of Partnership Act).
7	Under Section 68 of the Companies Act 2013, what are the key conditions and limits for Buy-Back of Shares?	Up to 10% of total paid-up equity capital + free reserves can be authorized by a Board Resolution; up to 25% of aggregate paid-up capital + free reserves requires a Special Resolution (and max 25% of equity shares in any financial year). Post buy-back debt-to-equity ratio must not exceed 2:1, and a cooling period of 1 year applies between two buy-backs.
8	Under Clause (i) and Clause (vii) of CARO 2020, what are the key reporting requirements regarding Property, Plant & Equipment (PPE) revaluation and Undisputed Statutory Dues?	Clause (i): Report whether the company has revalued its PPE (including Right of Use assets) or intangible assets by 10% or more in the aggregate of the net carrying value of each class. Clause (vii): Report undisputed statutory dues (GST, PF, ESI, Income Tax) in arrears for a period of more than 6 months from the date they became payable as on the balance sheet date.
9	Under CARO 2020 (Companies Auditor's Report Order, 2020), which companies are exempt from CARO 2020 reporting?	1) Banking Co., 2) Insurance Co., 3) Section 8 Co., 4) One Person Company (OPC), 5) Small Company, and 6) A Private Limited Company (not being a subsidiary or holding of a public company) having Paid-up capital + reserves <= Rs. 1 Crore, Total Borrowings <= Rs. 1 Crore at any point during the FY, AND Total Revenue <= Rs. 10 Crore.
10	Under the Limited Liability Partnership (LLP) Act 2008, what are the requirements for Designated Partners (Section 7)?	Every LLP must have at least 2 Designated Partners who are individuals, and at least one of them must be resident in India (stayed in India for not less than 120 days during the financial year).
11	Under the Indian Contract Act 1872, how do Fraud (Sec 17) and Misrepresentation (Sec 18) differ from Coercion (Sec 15) and Undue Influence (Sec 16), and what is their effect?	All four render the contract voidable at the option of the aggrieved party (Sec 19 & 19A). Coercion involves committing/threatening an act forbidden by IPC or unlawful detaining of property; Fraud involves intentional deception (allows rescission + damages), whereas Misrepresentation is an innocent false statement without intent to deceive.
12	Under SA 210 (Agreeing the Terms of Audit Engagements), when can an auditor accept a change in the terms of the audit engagement to a lower level of assurance?	Only if there is a 'reasonable justification' (such as a change in circumstances affecting the entity's requirements or a misunderstanding concerning the nature of the service originally requested), and NOT to avoid a qualified opinion or scope limitation.
13	Under Section 2(85) of the Companies Act 2013 (as amended), what are the revised paid-up capital and turnover limits for a 'Small Company'?	A company (other than a public company) whose paid-up share capital does not exceed Rs. 4 Crore AND turnover as per the profit and loss account for the immediately preceding financial year does not exceed Rs. 40 Crore (excluding holding/subsidiary, Section 8, or special Act companies).
14	Under Section 139(2) of the Companies Act 2013, what are the rules for Rotation of Auditors and which companies are covered?	Applicable to all listed companies, unlisted public companies with paid-up capital >= Rs. 10 Cr, private companies with paid-up capital >= Rs. 50 Cr, or any company with public borrowings/deposits >= Rs. 50 Cr. Individual auditor max 1 term of 5 consecutive years; Audit firm max 2 terms of 5 consecutive years each, followed by a 5-year cooling-off period.
15	Under Section 135 of the Companies Act 2013, when is Corporate Social Responsibility (CSR) mandatory and what is the minimum spending requirement?	Applicable to every company having during the immediately preceding financial year: 1) Net Worth >= Rs. 500 Crore, OR 2) Turnover >= Rs. 1,000 Crore, OR 3) Net Profit >= Rs. 5 Crore. The company must spend at least 2% of the average net profits made during the 3 immediately preceding financial years.
16	Under SA 315 and SA 320, what is Performance Materiality and how is it used by the auditor?	Performance Materiality (SA 320) is the amount set by the auditor at LESS than materiality for the financial statements as a whole, to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality.
17	Under SA 230 (Audit Documentation), what is the mandatory assembly period and retention period for audit working papers?	Audit file assembly must be completed within not more than 60 days after the date of the auditor's report (SQC 1), and audit documentation must be retained for a minimum of 7 years from the date of the auditor's report.
18	Under the Foreign Exchange Management Act (FEMA) 1999, how is a 'Person Resident in India' (PRI) defined under Section 2(v)?	A person residing in India for more than 182 days during the course of the preceding financial year, EXCLUDING someone who has gone out of India for employment, business/vocation, or with an intention to stay outside India for an uncertain period (and vice versa for coming into India).
19	Under the Indian Contract Act 1872, what is the rule 'No Consideration, No Contract' (Section 25) and what are its key statutory exceptions?	An agreement without consideration is void, EXCEPT: 1) Written & registered agreement out of natural love and affection between parties in near relation, 2) Promise to compensate past voluntary services, 3) Written & signed promise to pay a time-barred debt, 4) Completed gifts, 5) Creation of Agency (Sec 185), 6) Charity if liability is incurred on the faith of the promise.
20	Under SA 560 (Subsequent Events), how does an auditor treat events occurring between the date of the financial statements and the date of the auditor's report?	The auditor must perform audit procedures designed to obtain sufficient appropriate audit evidence that all events occurring up to the date of the auditor's report that require adjustment of (Type I) or disclosure in (Type II) the financial statements have been identified.
21	In ICAI Auditing, what are the objectives of the Overall Auditor under SA 200 and the concept of Audit Risk?	Under SA 200, the auditor's objective is to obtain reasonable assurance whether financial statements are free from material misstatement (due to fraud or error). Audit Risk = Inherent Risk x Control Risk x Detection Risk (where Inherent Risk x Control Risk = Risk of Material Misstatement, RMM).
22	Under the Indian Contract Act 1872, how does a Contract of Indemnity (Sec 124) differ from a Contract of Guarantee (Sec 126)?	Indemnity has 2 parties (Indemnifier & Indemnified) with 1 primary contingent contract to save from loss; Guarantee has 3 parties (Surety, Principal Debtor, Creditor) with 3 collateral contracts where the Surety's liability is secondary and co-extensive with that of the Principal Debtor (Sec 128).
23	Under FEMA 1999 and the Liberalised Remittance Scheme (LRS), what is the annual limit for Current/Capital Account remittances by resident individuals and which schedules govern Current Account transactions?	Under LRS, resident individuals (including minors) can freely remit up to USD 2,50,000 per financial year for permissible current or capital account transactions. Schedule I: Prohibited transactions (e.g., lottery, racing); Schedule II: Requires Central Govt approval; Schedule III: Requires RBI approval beyond USD 2,50,000.
24	Under SA 240 (The Auditor's Responsibilities Relating to Fraud), how is management fraud distinguished from employee fraud regarding detection risk?	The risk of not detecting a material misstatement resulting from fraud is higher than from error (due to concealment/collusion), and the risk of not detecting management fraud is greater than employee fraud because management is in a position to override internal controls.
25	Under Section 96 of the Companies Act 2013, what are the statutory timelines for holding the First AGM and Subsequent Annual General Meetings (AGMs)?	First AGM: Within 9 months from the closing of the first financial year (no extension by RoC). Subsequent AGMs: Within 6 months from the close of the financial year (by 30th September), with a maximum gap of 15 months between two AGMs (RoC may extend by up to 3 months for special reasons).
26	Under Section 180(1)(c) of the Companies Act 2013, when does the Board of Directors require a Special Resolution in a General Meeting to borrow money?	When the money to be borrowed, together with the money already borrowed by the company (excluding temporary loans obtained from the company's bankers in the ordinary course of business), exceeds the aggregate of its paid-up share capital, free reserves, and securities premium.
27	Under Section 2(62) and Incorporation Rules of the Companies Act 2013, what are the eligibility and conversion rules for a One Person Company (OPC)?	Only a natural person who is an Indian citizen (whether resident in India—stayed >= 120 days in the preceding financial year—or otherwise) can form an OPC. An OPC cannot carry out NBFC investment activities or convert into a Section 8 company; mandatory paid-up capital/turnover threshold for conversion into a private/public company has been removed.
28	What is the Doctrine of Ultra Vires (Ashbury Railway Carriage Co. v. Riche) vs the Doctrine of Indoor Management (Royal British Bank v. Turquand)?	Doctrine of Ultra Vires: Any act beyond the objects clause of the Memorandum of Association (MoA) is wholly void and cannot be ratified even by unanimous shareholder consent. Doctrine of Indoor Management (Turquand Rule): Outsiders dealing with a company in good faith are entitled to assume that internal procedural regularities required by the Articles (AoA) have been complied with.
29	Under Section 149(1) of the Companies Act 2013, what are the minimum and maximum number of directors and the Woman Director / Independent Director requirements?	Min directors: 3 (Public), 2 (Private), 1 (OPC); Max: 15 (can be increased by Special Resolution). Woman Director is mandatory for every listed company and public companies with paid-up capital >= Rs. 100 Cr or turnover >= Rs. 300 Cr. Listed public companies must have at least 1/3rd Independent Directors.
30	Under SA 570 (Going Concern), what is the impact on the Auditor's Report when a Material Uncertainty Exists regarding Going Concern?	1) If Going Concern basis is appropriate and adequate disclosure of material uncertainty is made -> Unmodified Opinion with a separate section 'Material Uncertainty Related to Going Concern'. 2) If adequate disclosure is NOT made -> Qualified or Adverse Opinion. 3) If financial statements are prepared on Going Concern basis when it is inappropriate -> Adverse Opinion.
31	Under SA 700, SA 705, and SA 706, what is the decision matrix for choosing between a Qualified Opinion, Adverse Opinion, and Disclaimer of Opinion?	Under SA 705: Material but NOT Pervasive -> Qualified Opinion (for both Material Misstatement and Inability to obtain SAAE). Material AND Pervasive: Financial statements are materially misstated -> Adverse Opinion; Unable to obtain sufficient appropriate audit evidence (SAAE) -> Disclaimer of Opinion.
32	Under the Negotiable Instruments Act 1881, what are the essential requirements and timelines for dishonour of a cheque for insufficiency of funds under Section 138?	1) Cheque presented within validity period (3 months), 2) Payee issues written demand notice within 30 days of receiving bank return memo, 3) Drawer fails to make payment within 15 days of receipt of notice, 4) Complaint filed before Magistrate within 1 month of expiry of the 15-day notice period. Punishment: up to 2 years imprisonment or fine up to twice the cheque amount or both.