**MCQ 5 — NOCLAR × SA 250**

**A threshold + nature-of-engagement trap**

CA **R** is a partner of an audit firm.

Consider the following three assignments being handled by R:

**Entity X:** Its shares are listed on a recognised stock exchange in India and its net worth is ₹275 crore. R is appointed as statutory auditor and expresses an opinion on whether its financial statements give a true and fair view.

**Entity Y:** Its shares are listed on a recognised stock exchange in India and its net worth is ₹275 crore. R is engaged only to perform a **limited review** of its interim financial information.

**Entity Z:** Its shares are not listed on a recognised stock exchange in India and its net worth is ₹600 crore. R is appointed as statutory auditor.

During each engagement, R becomes aware of a suspected environmental-law violation that could potentially cause serious harm to the public.

Which ONE of the following correctly identifies the engagements to which **Section 360 NOCLAR provisions, in their capacity as professional accountant in public practice, apply under the current ICAI framework?**

**A.** X only.

**B.** X and Y only.

**C.** X and Z only.

**D.** X, Y and Z.