McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 101. |
Which of the following statements are true about management audit? |
| A. | The management audit is made compulsory and statutory |
| B. | Management audit cannot be conducted by an independent person |
| C. | No time limit can be fixed for submission of the report under management audit |
| D. | Management audit is a programme of one year |
| Answer» C. No time limit can be fixed for submission of the report under management audit | |
| 102. |
Which of the following is (are) true of the EDP auditors? |
| A. | They should have computer expertise |
| B. | They will be replaced by traditional auditors in the near future |
| C. | Currently, there is a very high demand from firms that use personal computers |
| D. | None of the above |
| Answer» A. They should have computer expertise | |
| 103. |
Audit software includes |
| A. | Generalized Audit Software |
| B. | Specialized Audit Software |
| C. | Utility Software |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 104. |
International auditing standards are issued by the: |
| A. | International Accounting Standards Board |
| B. | Financial Accounting Standards Board |
| C. | International Audit and Assurance Standards Board |
| D. | Auditing Practices Board |
| Answer» C. International Audit and Assurance Standards Board | |
| 105. |
Under the Companies Act, 2013 a cost auditor must be a cost accountant having certificate of practice issued by the institute of Cost Accountants of India as per |
| A. | Section 148 |
| B. | Section 147 |
| C. | Section 150 |
| D. | Section 151 |
| Answer» A. Section 148 | |
| 106. |
Management Audit assess the efficiency of management for third parties to commit funds for the business in situation such as – |
| A. | Granting loans or participation in equity |
| B. | Reviving sick units |
| C. | Foreign collaborations |
| D. | All of the above |
| Answer» D. All of the above | |
| 107. |
The section which contains provisions regarding compulsory Tax Audit is |
| A. | Section 44AD |
| B. | Section 44BB |
| C. | Section 44AB |
| D. | Section 44AE |
| Answer» C. Section 44AB | |
| 108. |
For an assesse carrying on business in India, deductions allowed under Section 33AB includes businesses of |
| A. | Growing and manufacturing of tea |
| B. | Growing and manufacturing of coffee |
| C. | Growing and manufacturing of rubber |
| D. | All of the above |
| Answer» D. All of the above | |
| 109. |
Transactions entered in the computer as they occur and processed simultaneously in the processing capabilities of accounting system is |
| A. | Batch processing system |
| B. | Real-time processing system |
| C. | Distributed Data processing |
| D. | None of the above |
| Answer» B. Real-time processing system | |
| 110. |
Selecting and printing audit samples, comparing data on separate files, comparing audit data with clients records |
| A. | Functions of Generalized Audit Software |
| B. | Integrated Test Data Approach |
| C. | Test Data Approach |
| D. | All of the above |
| Answer» A. Functions of Generalized Audit Software | |
| 111. |
Compliance with standard of Auditing is the responsibility of |
| A. | Management |
| B. | Those charged with governance |
| C. | Auditor |
| D. | Audit committee |
| Answer» C. Auditor | |
| 112. |
If the auditor is unable to draw reasonable assurance, he should either withdraw from engagement if permitted by law or disclaim his opinion, is given in which Standard on Auditing. |
| A. | SA500 |
| B. | SA200 |
| C. | SA705 |
| D. | SA700 |
| Answer» B. SA200 | |
| 113. |
The ------- can be removed after the expiry of his term of office,as per the procedures laid down in section 225. |
| A. | BOD |
| B. | Clerk |
| C. | Auditor |
| D. | Shareholders. |
| Answer» C. Auditor | |
| 114. |
An appointed auditor may be removed from his office either in accordance with the provisions and as per restrictions imposed by the |
| A. | Companies Act |
| B. | Chartered Accountants Act |
| C. | Both (a) and (b) |
| D. | None of the above. |
| Answer» C. Both (a) and (b) | |
| 115. |
Cost audit is the verification of the correctness of cost accounts and adherence to the cost accounting plan. This concept is given by |
| A. | Institute Of Chartered Accountant Of India |
| B. | Institute Of Chartered Accountant Of London |
| C. | Institute Of Cost and Works Accountants of India |
| D. | Institute Of Cost and Works Accountants of London. |
| Answer» D. Institute Of Cost and Works Accountants of London. | |
| 116. |
Cost audit helps in settlement of trade disputes. This is the advantage for |
| A. | Government |
| B. | Management |
| C. | Society |
| D. | Shareholders . |
| Answer» C. Society | |
| 117. |
The audit of financial records to ascertain the correctness of taxable profits means |
| A. | Tax audit |
| B. | Management audit |
| C. | Profit audit |
| D. | Financial audit . |
| Answer» A. Tax audit | |
| 118. |
According to section 44AB,Tax Audit is to be conducted by an |
| A. | Internal auditor |
| B. | Chartered Accountant |
| C. | Accountant |
| D. | None of the above . |
| Answer» B. Chartered Accountant | |
| 119. |
Future oriented, independent and systematic evaluation of the activities of all levels of management for the purpose of improving organizational profitability and increasing the attainment of other organizational objectives is known as |
| A. | Cost audit |
| B. | Tax audit |
| C. | Management audit |
| D. | Human resources audit . |
| Answer» C. Management audit | |
| 120. |
Objective of management audit are |
| A. | To evaluate the performance by relating inputs with output |
| B. | To obtain efficiency and effectiveness of management |
| C. | Only (b) |
| D. | (a) and (b). |
| Answer» D. (a) and (b). | |
| 121. |
The corporate governance structure of a company reflects the individual companies is |
| A. | Cultural and economic system |
| B. | Legal and business system |
| C. | Social and regulatory system |
| D. | All of the above |
| Answer» D. All of the above | |
| 122. |
The corporate governance framework consists of explicit and implicit contracts between |
| A. | Company and the stakeholders |
| B. | Management and State government |
| C. | Stakeholders and Management |
| D. | None of the above |
| Answer» A. Company and the stakeholders | |
| 123. |
The primary stakeholders are: |
| A. | Customers |
| B. | Suppliers. |
| C. | Shareholders |
| D. | Creditors |
| Answer» C. Shareholders | |
| 124. |
The goal of corporate governance and business ethics education is to: |
| A. | Teach students their professional accountability and to uphold their personal Integrity to society |
| B. | Change the way in which ethics is taught to students |
| C. | Create more ethics standards by which corporate professionals must operate |
| D. | Increase the workload for accounting students |
| Answer» C. Create more ethics standards by which corporate professionals must operate | |
| 125. |
Good corporate governance helps to minimize: |
| A. | Wastages |
| B. | Corruption |
| C. | Risks and mismanagement |
| D. | All of the above |
| Answer» D. All of the above | |
| 126. |
Benefits of Corporate governance: |
| A. | Lowers the capital cost |
| B. | Ensures corporate success and economic growth |
| C. | Gives positive impact on the share price |
| D. | All of the above |
| Answer» D. All of the above | |
| 127. |
The framework for establishing good corporate governance and accountability was originally set up by the |
| A. | Nestlé Committee |
| B. | Cadbury Committee |
| C. | Rowntree Committee |
| D. | Thornton Committee |
| Answer» B. Cadbury Committee | |
| 128. |
Which of the following is not one the underlying principles of the corporate governance Combined Code of Practice? |
| A. | Accountability |
| B. | Acceptability |
| C. | Openness |
| D. | Integrity |
| Answer» B. Acceptability | |
| 129. |
Which of the following is not pillars of corporate Governance |
| A. | Accountability |
| B. | Reliability |
| C. | Fairness |
| D. | Transparency |
| Answer» B. Reliability | |
| 130. |
The theory based on the concept of separation of ownership and control. |
| A. | Agency Theory |
| B. | Stewardship Theory |
| C. | Stakeholder Theory |
| D. | None of the above |
| Answer» A. Agency Theory | |
| 131. |
There is no conflict of interest between the shareholders and BoD and Managers |
| A. | Agency Theory |
| B. | Stewardship Theory |
| C. | Stakeholder Theory |
| D. | None of the above |
| Answer» B. Stewardship Theory | |
| 132. |
The key players of Anglo-Saxon model of Corporate Governance |
| A. | Management, directors and shareholders |
| B. | Banks and shareholders |
| C. | Partner, keiretsu, management and Government |
| D. | Government |
| Answer» A. Management, directors and shareholders | |
| 133. |
________is transaction in securities of the company by an insider on the basis of unpublished price sensitive information |
| A. | Insider trading |
| B. | Outsider trading |
| C. | Investor trading |
| D. | None of the above |
| Answer» A. Insider trading | |
| 134. |
A person who exposes any kind of information or activity that is deemed illegal, unethical, or not correct within an organisation that is either private or public |
| A. | Whistle blower |
| B. | Legal protector |
| C. | Broker |
| D. | None of the above |
| Answer» A. Whistle blower | |
| 135. |
Which of the following is not rating agencies? |
| A. | CRISIL‟s Governance and Value Creation rating |
| B. | CARE‟s Corporate Governance Rating |
| C. | ICRA‟s Corporate Governance Rating |
| D. | ICICI‟s Corporate Governance Rating |
| Answer» D. ICICI‟s Corporate Governance Rating | |
| 136. |
Directors service contracts should not exceed three years without shareholder‟s approval |
| A. | Cadbury Report |
| B. | Greenbury Report |
| C. | Hampel Report |
| D. | Smith Report |
| Answer» A. Cadbury Report | |
| 137. |
The primary stakeholders are |
| A. | Customers. |
| B. | Suppliers. |
| C. | Shareholders. |
| D. | Creditors |
| Answer» C. Shareholders. | |
| 138. |
Which of the following is not a model of corporate governance? |
| A. | American model |
| B. | English model |
| C. | Indian model |
| D. | Japanese model |
| Answer» B. English model | |
| 139. |
In which of the following countries German Model of corporate governance is not prevalent |
| A. | Switzerland |
| B. | Austria |
| C. | Poland |
| D. | Netherland |
| Answer» C. Poland | |
| 140. |
Which of the following committee is appointed under the initiative of Government of India on corporate governance? |
| A. | Kumar Mangalam Birla Committee |
| B. | Naresh Chandra Committee |
| C. | Narayana Murthy Committee |
| D. | None of the Above |
| Answer» B. Naresh Chandra Committee | |
| 141. |
Which of the following is not related to corporate governance reforms in India? |
| A. | Enacting the Companies Act, 2013 |
| B. | Setting up of Securities Exchange Board of India |
| C. | Scrapping of the Capital Issues Control Act, 1947 |
| D. | Banking Regulation Act, 1949. |
| Answer» D. Banking Regulation Act, 1949. | |
| 142. |
Which of the following statement is most appropriate regarding common governance problems in corporate failures |
| A. | Failure of Board of Directors |
| B. | Failure of Internal Control |
| C. | Inadequate Regulatory Mechanisms |
| D. | All of the Above |
| Answer» D. All of the Above | |
| 143. |
Which of the following is the major corporate collapses arising out of scam in India |
| A. | Kingfisher Airlines |
| B. | Enron |
| C. | WorldCom |
| D. | Maxwell Communication |
| Answer» A. Kingfisher Airlines | |
| 144. |
Corporate governance code in the United Kingdom was set up in 1992 by the |
| A. | Thornton Committee |
| B. | Rowntree Committee |
| C. | Cadbury Committee |
| D. | Nestlé Committee |
| Answer» C. Cadbury Committee | |
| 145. |
The four pillars /principles of corporate governance |
| A. | Accountability, fairness, transparency and independence |
| B. | Accountability, agency, transparency and regulatory |
| C. | Regulatory, fairness, independence and transparency |
| D. | Accountability, cooperation, fairness and independence |
| Answer» A. Accountability, fairness, transparency and independence | |
| 146. |
Stakeholders in the Stakeholder Theory are divided into primary and secondary stakeholders. Primary stakeholders are – |
| A. | Environmentalists, governments, media |
| B. | Employees, suppliers, customers |
| C. | Both (a) & (b) |
| D. | Only (b) |
| Answer» D. Only (b) | |
| 147. |
This committee laid down guidelines to ensure independence of auditors and recommended rotation of auditors. |
| A. | Narayan Murthy Committee set up by SEBI in 2003 |
| B. | SEBI‟s Birla Committee chaired by Kumara Manglam Birla in1999 |
| C. | Naresh Chandra Committee set up by Department of Company Affairs in 2002 |
| D. | Only (a) |
| Answer» C. Naresh Chandra Committee set up by Department of Company Affairs in 2002 | |
| 148. |
The Companies Act, 2013 provisions relating to independent directors |
| A. | At least two-third of the board of the company shall consist of independent directors |
| B. | No stock options can be made to independent directors |
| C. | Audit committee should have independent directors as members |
| D. | Both (a) & (b) |
| Answer» D. Both (a) & (b) | |
| 149. |
Common governance problems of corporate failures in Developed countries are
|
| A. | i, ii, iv |
| B. | ii, iii, iv |
| C. | i, ii, iii |
| D. | i, ii, iii, iv |
| Answer» C. i, ii, iii | |
| 150. |
Common governance problems of corporate failures in India are
|
| A. | i, ii, iii |
| B. | ii, iii, iv |
| C. | i, iii, iv |
| D. | i, ii, iii, iv |
| Answer» D. i, ii, iii, iv | |
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