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)
61. A company auditor can be removed before expiry of his term by
a) Shareholders
b) Board of Directors
c) Central Government
d) State Government
Answer:- a) Shareholders
62. Remuneration of a company auditor is fixed by the
a) Shareholders
b) Board of Directors
c) Central Government
d) Appointing authority
Answer:- d) Appointing authority
63. A company auditor, in general has to submit his report to
a) Shareholders
b) Board of Directors
c) Central Government
d) C & A – G
Answer:- a) Shareholders
64. An auditor of Government company has to submit his report to the
a) Shareholders
b) Central Government
c) C & A – G
d) Ministry concerned
Answer:- b) Central Government
65. Internal auditor has to submit report to
a) Shareholders
b) Government
c) Company Law board
d) None of the above
Answer:- d) None of the above
66. Auditor should be dutiful like a
a) A watch dog
b) A blood hound
c) A detective
d) An insurer
Answer:- a) A watch dog
67. Auditor, in general is an
a) Employee of the company
b) Agent of the company
c) Agent of the shareholders
d) None of the above
Answer:- c) Agent of the shareholders
68. While checking allotment of shares the auditor should see that it is made within
a) 100 days of issue of prospectus
b) 120 days of issue of prospectus
c) 150 days of issue of prospectus
d) 80 days of issue of prospectus
Answer:- b) 120 days of issue of prospectus
69. Which of the following percentage of nominal amount of shares should be received with application
a) 10
b) 15
c) 5
d) 6
Answer:- c) 5
70. While checking allotment, auditor should see that amount
a) Equal to estimated fixed capital is received
b) Equal to estimated working capital is received
c) Necessary for purchase of land & building has been received
d) None of the above
Answer:- d) None of the above
