McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
Who is responsible for the appointment of statutory auditor of a limited company ? |
| A. | Directors of the company. |
| B. | Members of the company. |
| C. | The Central Government. |
| D. | All of the above. |
| Answer» B. Members of the company. | |
| 2. |
Which of the following sections deal with qualifications of the auditor ? |
| A. | Section 226 (1) and section 226(2). |
| B. | Section 224 (1) and section 224 (2). |
| C. | Section 226 (3) and section 226(4). |
| D. | Section 224(3) & Sec.224. |
| Answer» A. Section 226 (1) and section 226(2). | |
| 3. |
Which of the following statement is not true? |
| A. | A partnership firm can be appointed as a statutory auditor of limited company. |
| B. | Appointment can be made in the name of the firm. |
| C. | Majority of the partners should be practicing in India. |
| D. | All partners should be chartered accountants. |
| Answer» C. Majority of the partners should be practicing in India. | |
| 4. |
As per the requirements of section 226(3) and 226(4) a person is disqualified from being appointed as a statutory auditor if he holds……………… |
| A. | Equity shares or debentures of the company. |
| B. | Equity shares carrying voting of the company. |
| C. | Shares carrying voting rights of the company. |
| D. | Security carrying voting rights of the company. |
| Answer» D. Security carrying voting rights of the company. | |
| 5. |
The board of directors shall appoint first auditor of a company. |
| A. | With in one month of completion of capital subscription state of the company. |
| B. | With in one month of the promotion of the company. |
| C. | With in one month of the commencement of the business of the company. |
| D. | With in one month of incorporation of the company. |
| Answer» D. With in one month of incorporation of the company. | |
| 6. |
The term of the auditor ship of first auditor would be from the date of appointment till…………………………. |
| A. | the conclusion of statutory meeting. |
| B. | the conclusion of first annual general meeting. |
| C. | the conclusion of next annual general meeting. |
| D. | the date of removal. |
| Answer» B. the conclusion of first annual general meeting. | |
| 7. |
In case the directions fail to appoint first auditor (s), the shareholders shall appoint them at…..by passing a resolution |
| A. | a general meeting. |
| B. | first annual general meeting. |
| C. | statutory meeting. |
| D. | annual general meeting. |
| Answer» A. a general meeting. | |
| 8. |
Life Insurance Corporation of India holds twenty five percent of subscribed capital of XYZ Ltd. The appointment of statutory auditor in XYZ Ltd. Would be by………………….. |
| A. | ordinary resolution. |
| B. | special resolution. |
| C. | (a) or (b). |
| D. | none of the above. |
| Answer» B. special resolution. | |
| 9. |
Which of the following statement is not true regarding appointment of statutory auditor by the Central Government? |
| A. | Such powers have been conferred upon it by section 224(3). |
| B. | If a company fails to appoint an auditor at a general meeting. |
| C. | If an auditor refuses to accept appointment, the powers of the Central Government can be exercis |
| Answer» B. If a company fails to appoint an auditor at a general meeting. | |
| 10. |
The auditor’s _________ safeguards the auditor’s ability to form an audit opinion without being affected by any influences. |
| A. | Objectivity. |
| B. | Independence. |
| C. | Confidentiality. |
| D. | Integrity. |
| Answer» D. Integrity. | |
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