McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 51. |
In case of first auditor appointed by the board of directors, who would fix remuneration |
| A. | Board of directors |
| B. | Shareholders |
| C. | Debenture holders |
| D. | Creditors |
| Answer» A. Board of directors | |
| 52. |
The tenure of first auditor shall be from the date of appointment till |
| A. | The conclusion of first annual general meeting |
| B. | The beginning of first annual general meeting |
| C. | The conclusion of the second annual general meeting |
| D. | The conclusion of special meeting |
| Answer» A. The conclusion of first annual general meeting | |
| 53. |
Forming an opinion on the financial statements the auditor‟s report shall be in |
| A. | Writing |
| B. | Verbal |
| C. | Instruction to assistant |
| D. | None of the above |
| Answer» A. Writing | |
| 54. |
Which of the following is an element of the Audit Report |
| A. | Title& addressee |
| B. | Introductory, scope and opinion paragraph |
| C. | Date, place and auditors signature |
| D. | All of the above |
| Answer» D. All of the above | |
| 55. |
The auditor who authorized the issue of misstatements in prospectus can be imprisoned for a term which may extend to |
| A. | 5 years |
| B. | 7 years |
| C. | 8 years |
| D. | 10 years |
| Answer» D. 10 years | |
| 56. |
Which of the following is not the types of audit report based on the kind of opinion |
| A. | Unmodified opinion report |
| B. | Audit report with an emphasis of matter paragraph |
| C. | Modified report |
| D. | None |
| Answer» D. None | |
| 57. |
In case the Board of Directors fails to appoint first auditors, the shareholders shall appoint them at _______ by passing a resolution. |
| A. | Extraordinary general meeting. |
| B. | First annual general meeting. |
| C. | Statutory meeting. |
| D. | Annual general meeting |
| Answer» A. Extraordinary general meeting. | |
| 58. |
Which of the following statement is not correct regarding removal of first auditor before expiry of the term? |
| A. | He is removed at a general meeting. |
| B. | The approval of the central government is required for such removal. |
| C. | The provision for removal are contained in sec 140(1) of Companies Act, 2013 |
| D. | The shareholders are authorized to do so |
| Answer» B. The approval of the central government is required for such removal. | |
| 59. |
The board of directors shall appoint first auditor of a company ___________. |
| A. | Within one month of completion of capital subscription state of the company |
| B. | Within one month of the promotion of the company. |
| C. | Within one month of the commencement of the business of the company. |
| D. | Within one month of incorporation of the company. |
| Answer» D. Within one month of incorporation of the company. | |
| 60. |
The first auditor of a government company shall be appointed within 60 days from the date of registration of the company by. |
| A. | The government company itself. |
| B. | The Comptroller and Auditor General of India |
| C. | The central government. |
| D. | The shareholders. |
| Answer» B. The Comptroller and Auditor General of India | |
| 61. |
The liabilities of an auditor can be _________. |
| A. | Civil |
| B. | Criminal |
| C. | Civil and Criminal. |
| D. | Official |
| Answer» C. Civil and Criminal. | |
| 62. |
Which of the following statement is not correct regarding basic features/ elements/ form of an Audit Report |
| A. | Title, Addressee and opening paragraph |
| B. | Management‟s responsibility and auditor‟s responsibility |
| C. | Opinion paragraph, date, address, signature of the auditor |
| D. | None of these |
| Answer» D. None of these | |
| 63. |
is issued when the auditor is completely satisfied that there is nothing objectionable |
| A. | Standard Unqualified Report or Clean Report |
| B. | Qualified opinion |
| C. | Disclaimer of opinion |
| D. | Adverse opinion |
| Answer» A. Standard Unqualified Report or Clean Report | |
| 64. |
A casual vacancy in the office of an auditor shall be filled by. |
| A. | Board of Directors. |
| B. | Managing Director. |
| C. | General meeting. |
| D. | Central Government. |
| Answer» A. Board of Directors. | |
| 65. |
Who among the following cannot be appointed as auditor of a company? |
| A. | A person who is a Chartered Accountant within the meaning of CA Act, 1949 and holds a certificate of practice. |
| B. | Officer or employee of the company |
| C. | A Chartered Accountant who is an auditor of more than 20 companies |
| D. | Both (b) & (c) |
| Answer» D. Both (b) & (c) | |
| 66. |
First auditor of a company shall be appointed by the Board of Directors within |
| A. | 30 days |
| B. | 40 days |
| C. | 45 days |
| D. | 60 days |
| Answer» A. 30 days | |
| 67. |
Removal of auditor that requires special resolution and previous approval of the Central Government |
| A. | Resignation of Auditor |
| B. | Retirement of Auditor |
| C. | Removal of Auditor before expiry of term |
| D. | Removal of Auditor after expiry of term |
| Answer» C. Removal of Auditor before expiry of term | |
| 68. |
The section which contains provisions regarding remuneration of the auditor is |
| A. | Section 140(1) |
| B. | Section 142 |
| C. | Section 139 |
| D. | Section 141 |
| Answer» B. Section 142 | |
| 69. |
The principal rights conferred upon the auditor by the Companies Act, 2013 |
| A. | Right to sign audit reports |
| B. | Right to get his representation circulated |
| C. | Right to speak as a member of the company |
| D. | Right to make a written representation |
| Answer» A. Right to sign audit reports | |
| 70. |
The matters on which an auditor has a duty to report under Section 143 (3)can broadly divided into two categories, namely |
| A. | Statement of fact and opinion |
| B. | Accounts examined and every financial statement during his tenure |
| C. | Both (a) & (b) |
| D. | Only (b) |
| Answer» A. Statement of fact and opinion | |
| 71. |
Report issued when the auditor on the basis of sufficient appropriate audit evidence, concludes that misstatements are both material and pervasive to the financial statement |
| A. | Unqualified report |
| B. | Disclaimer of opinion report |
| C. | Qualified report |
| D. | Adverse report |
| Answer» D. Adverse report | |
| 72. |
The sections of the Act under which an auditor ac be held criminally liable are |
| A. | Section 34 |
| B. | Section 147 |
| C. | Section 448 |
| D. | All of the above |
| Answer» D. All of the above | |
| 73. |
An arrangement of accounting routine that errors and frauds are automatically prevented or discovered by the very operation of bookkeeping itself is called |
| A. | Internal control |
| B. | Internal check |
| C. | Interim audit |
| D. | Partial audit. |
| Answer» B. Internal check | |
| 74. |
The examination of documentary evidence in support of transactions contained in the books of accounts is referred to as |
| A. | Voucher |
| B. | Verification |
| C. | Internal verification |
| D. | Vouching |
| Answer» D. Vouching | |
| 75. |
Section --------------of the companies Act,2013 detailed the qualification of company Auditors. |
| A. | 141 |
| B. | 141(ab) |
| C. | 140 |
| D. | 140(ab) |
| Answer» A. 141 | |
| 76. |
The first auditor of a company, other than a Government company, shall be appointed by |
| A. | Shareholders |
| B. | CEO |
| C. | AGM |
| D. | Board of Directors. |
| Answer» D. Board of Directors. | |
| 77. |
Select which one is not under the right of an Auditor |
| A. | Right to obtain information and explanation |
| B. | Right to visit branch office |
| C. | Right to sign the audit report |
| D. | Right to select the next auditor |
| Answer» D. Right to select the next auditor | |
| 78. |
The civil liability of an auditor can be for |
| A. | Negligence |
| B. | Misfeasance |
| C. | Negligence and misfeasance |
| D. | None of the above. |
| Answer» C. Negligence and misfeasance | |
| 79. |
Section ---- of the companies Act governs the audit of branch offices. |
| A. | 228(1) |
| B. | 228(2) |
| C. | (a) and (b) |
| D. | 228 |
| Answer» D. 228 | |
| 80. |
Sub-section (1A) of section 227 of the Companies Act specifies -----matters, which are required to be looked into by a company auditor. |
| A. | 6 |
| B. | 7 |
| C. | 2 |
| D. | 4 |
| Answer» A. 6 | |
| 81. |
A Cost Auditor is appointed by the |
| A. | Board of Directors |
| B. | Shareholders |
| C. | Central Government |
| D. | C&A-G |
| Answer» A. Board of Directors | |
| 82. |
Management Audit means |
| A. | Audit undertaken on behalf of the management |
| B. | Evaluating performance of various management processes & functions |
| C. | Compulsory audit of company management |
| D. | All of the above |
| Answer» B. Evaluating performance of various management processes & functions | |
| 83. |
Report of Cost audit should be submitted to |
| A. | Shareholders |
| B. | Company Law Board |
| C. | Central Government |
| D. | All of the above |
| Answer» C. Central Government | |
| 84. |
A Tax Auditor of a firm/proprietary concern is appointed by |
| A. | A Partner |
| B. | The Proprietor |
| C. | A person authorized by the assessee |
| D. | All of the above |
| Answer» D. All of the above | |
| 85. |
The Cost auditor is concerned mainly with accounts related to |
| A. | Cost |
| B. | Finance |
| C. | Both cost & finance |
| D. | None of the above |
| Answer» A. Cost | |
| 86. |
The Management Auditor has to submit the audit report to |
| A. | Shareholders |
| B. | Company Law Board |
| C. | Management |
| D. | State Government |
| Answer» C. Management | |
| 87. |
Compulsory Tax Audit U/S 44AB is applicable for |
| A. | 8 categories of Assessees |
| B. | 6 categories of Assessees |
| C. | 2 categories of Assessees |
| D. | 4 categories of Assessees |
| Answer» D. 4 categories of Assessees | |
| 88. |
The Cost auditor has to serve the interest of |
| A. | Shareholders |
| B. | Management |
| C. | State Government |
| D. | None of the above |
| Answer» B. Management | |
| 89. |
The verification of the correctness of cost accounts and of adherence to the cost accounting plan is known as |
| A. | Cost Audit |
| B. | Tax Audit |
| C. | Management Audit |
| D. | Internal Audit |
| Answer» A. Cost Audit | |
| 90. |
A comprehensive and critical review of all aspects of management process |
| A. | Cost Audit |
| B. | Tax Audit |
| C. | Management Audit |
| D. | Internal Audit |
| Answer» C. Management Audit | |
| 91. |
The management auditor may be appointed by |
| A. | Shareholders |
| B. | Board of directors |
| C. | Shareholders or board of directors |
| D. | None of the above |
| Answer» C. Shareholders or board of directors | |
| 92. |
The audit fees and expenses incidental to audit shall be determined by |
| A. | The Chief Commissioner |
| B. | The State Government |
| C. | The Central Government |
| D. | None |
| Answer» A. The Chief Commissioner | |
| 93. |
Which of the following is not audit software? |
| A. | Generalized Audit Software |
| B. | Specialized Audit Software |
| C. | Utility Software |
| D. | Micro Software |
| Answer» D. Micro Software | |
| 94. |
The full form of CAAT |
| A. | Computer Assisted Audit Techniques |
| B. | Computer Assistance Alternate Techniques |
| C. | Computer Audit Assistance Technique |
| D. | Customer Assisted Audit Technique |
| Answer» A. Computer Assisted Audit Techniques | |
| 95. |
Black box Approach is an approach which is also known as |
| A. | Auditing around the computer |
| B. | Auditing through the computer |
| C. | Auditing above the computer |
| D. | Auditing under the computer |
| Answer» A. Auditing around the computer | |
| 96. |
The process of collecting and evaluating evidence to determine whether a computer system safeguards assets, maintains data integrity, achieves organizational goals effectively, and consumes resources efficiently. |
| A. | Electronic data processing |
| B. | Electronic Domain Process |
| C. | Environment Development process |
| D. | None of the above |
| Answer» A. Electronic data processing | |
| 97. |
Tax audit comprises of |
| A. | Compulsory Tax Audit |
| B. | Tax Audit for claiming deductions and exemptions |
| C. | Selective Tax Audit |
| D. | All of the above |
| Answer» D. All of the above | |
| 98. |
Who among the following can be appointed as cost auditor of a company? |
| A. | Chartered Accountant |
| B. | Cost Accountant within the meaning of Cost and Works Accountants Act, 1959 |
| C. | An officer or employee of the company |
| D. | Auditor of the company |
| Answer» B. Cost Accountant within the meaning of Cost and Works Accountants Act, 1959 | |
| 99. |
Who among the following can conduct tax audit? |
| A. | Practicing Chartered Accountant |
| B. | A Chartered Accountant who has written the books of assessee |
| C. | Employee of the assessee |
| D. | Internal auditor |
| Answer» A. Practicing Chartered Accountant | |
| 100. |
Cost audit is a verification of cost records to estimate the ________ efficiency of a business. |
| A. | External |
| B. | Internal |
| C. | Both internal and external |
| D. | None of the above |
| Answer» B. Internal | |
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