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This set of Practical Auditing Multiple Choice Questions & Answers (MCQs) focuses on Practical Auditing Set 3
Q1 | Investments in hand should be verified with the help of
- Schedule of investments
- Balance sheet
- Inspection of securities
- Certificate from the bank
Q2 | First auditor of a company is appointed by the
- Shareholders
- Central Govt.
- Company Law Board
- Board of Directors
Q3 | Which of the following persons is qualified to be a company auditor?
- An employee of the company
- A body corporate
- A person who is indebted to the company for an amount exceeding Rs. 1000
- A practicing chartered accountant
Q4 | The first auditor of a company will hold office
- For a period of one year
- Till holding of statutory meeting
- Till the conclusion of first annual general meeting
- Till a new auditor is appointed
Q5 | Normally, a company auditor is appointed by the
- Central Government
- Shareholders
- Board of Directors
- Company Law board
Q6 | An auditor in a casual vacancy is appointed by the
- Board of Directors
- Shareholders
- Central Government
- Company Law board
Q7 | If an auditor is not appointed at annual general meeting, he is appointed by the
- The Central Government
- Board of Directors
- Shareholders
- Company Law board
Q8 | A vacancy caused by resignation of the auditor is filled by
- Board of Directors
- At the general meeting of shareholders
- By the Central Government
- By the Company Law board
Q9 | A special auditor is appointed by the
- Shareholders
- Board of Directors
- Central Government
- C & A - G
Q10 | A government Co. auditor may be appointed by the
- C & A – G
- Shareholders
- Central Government
- None of the above
Q11 | A company auditor can be removed before expiry of his term by
- Shareholders
- Board of Directors
- Central Government
- State Government
Q12 | Remuneration of a company auditor is fixed by the
- Shareholders
- Board of Directors
- Central Government
- Appointing authority
Q13 | A company auditor, in general has to submit his report to
- Shareholders
- Board of Directors
- Central Government
- C & A – G
Q14 | An auditor of Government company has to submit his report to the
- Shareholders
- Central Government
- C & A – G
- Ministry concerned
Q15 | Internal auditor has to submit report to
- Shareholders
- Government
- Company Law board
- None of the above
Q16 | Auditor should be dutiful like a
- A watch dog
- A blood hound
- A detective
- An insurer
Q17 | Auditor, in general is an
- Employee of the company
- Agent of the company
- Agent of the shareholders
- None of the above
Q18 | While checking allotment of shares the auditor should see that it is made within
- 100 days of issue of prospectus
- 120 days of issue of prospectus
- 150 days of issue of prospectus
- 80 days of issue of prospectus
Q19 | Which of the following percentage of nominal amount of shares should be received with application
- 10
- 15
- 5
- 6
Q20 | While checking allotment, auditor should see that amount
- Equal to estimated fixed capital is received
- Equal to estimated working capital is received
- Necessary for purchase of land & building has been received
- None of the above
Q21 | For restriction regarding allotment of shares, the auditor should refer to section
- 25
- 75
- 64
- 69
Q22 | For checking that allotment of shares has been properly made, an auditor should refer to
- Cash Book
- Shares Ledger
- Directors minutes book
- Shareholders minutes Book
Q23 | Auditor should see that the return of allotment has been sent to Registrar within
- 1 month
- 2 months
- 3 months
- 40 days
Q24 | Application money should not be withdrawn unless
- Allotment is made
- Cash book has been prepared
- Certificate to commence business obtained
- Certificate of incorporation obtained
Q25 | Shares issued for consideration other than cash should be vouched with the help of
- Directors minutes book
- Shareholders minutes book
- Contract with the party concerned
- Cash book