PRACTICAL AUDITING MCQ
Auditing typically refers to financial statement audits or an objective examination and evaluation of a company’s financial statements – usually performed by an external third party. Audits can be performed by internal parties and a government entity, such as the Internal Revenue Service (IRS)
51. Investments in hand should be verified with the help of
a) Schedule of investments
b) Balance sheet
c) Inspection of securities
d) Certificate from the bank
Answer:- c) Inspection of securities
52. First auditor of a company is appointed by the
a) Shareholders
b) Central Govt.
c) Company Law Board
d) Board of Directors
Answer:- d) Board of Directors
53. Which of the following persons is qualified to be a company auditor?
a) An employee of the company
b) A body corporate
c) A person who is indebted to the company for an amount exceeding Rs. 1000
d) A practicing chartered accountant
Answer:- d) A practicing chartered accountant
54. The first auditor of a company will hold office
a) For a period of one year
b) Till holding of statutory meeting
c) Till the conclusion of first annual general meeting
d) Till a new auditor is appointed
Answer:- c) Till the conclusion of first annual general meeting
55. Normally, a company auditor is appointed by the
a) Central Government
b) Shareholders
c) Board of Directors
d) Company Law board
Answer:- b) Shareholders
56. An auditor in a casual vacancy is appointed by the
a) Board of Directors
b) Shareholders
c) Central Government
d) Company Law board
Answer:- a) Board of Directors
57. If an auditor is not appointed at annual general meeting, he is appointed by the
a) The Central Government
b) Board of Directors
c) Shareholders
d) Company Law board
Answer:- a) The Central Government
58. A vacancy caused by resignation of the auditor is filled by
a) Board of Directors
b) At the general meeting of shareholders
c) By the Central Government
d) By the Company Law board
Answer:- b) At the general meeting of shareholders
59. A special auditor is appointed by the
a) Shareholders
b) Board of Directors
c) Central Government
d) C & A – G
Answer:- c) Central Government
60. A government Co. auditor may be appointed by the
a) C & A – G
b) Shareholders
c) Central Government
d) None of the above
Answer:- a) C & A – G
