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If the auditor's report is QUALIFIED, in the Annual Return the:
AAuditor must resign immediately
BNo special disclosure is required
CThe company must file a separate Form CRA-2
DReasons for the qualification must be disclosed in the Board's Report
Answer & Solution
Correct answer: D. Reasons for the qualification must be disclosed in the Board's Report
1. Section 134(3)(f) — the Board's Report must contain explanations or comments on every qualification, reservation or adverse remark in the auditor's report.
2. This brings the qualification to the members' attention.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — Audit and Auditors_