Top 150+ Solved Auditing Corporate Governance MCQ Questions Answer
Q. Which of the following is not related to corporate governance reforms inIndia?
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.
Q. 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
Q. 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
Q. 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
Q. 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
Q. 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)
Q. 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)
Q. Common governance problems of corporate failures in Developed countries arei. Unethical business practicesii. Audit failuresiii. Ambitious acquisitions and takeoversiv. Remuneration structure
a. i, ii, iv
b. ii, iii, iv
c. i, ii, iii
d. i, ii, iii, iv
Q. Common governance problems of corporate failures in India arei. Accounting frauds carried out in collusion with statutory auditorsii. Insider tradingiii. Fiduciary failure by the boardiv. Disproportionate compensation paid to executive board members andsenior management.
a. i, ii, iii
b. ii, iii, iv
c. i, iii, iv
d. i, ii, iii, iv
Q. Which of the following is not a OECD principle
a. The responsibilities of the government and bureaucrats
b. Ensuring the basis for an effective corporate governance framework
c. Disclosure and transparency
d. The equitable treatment of shareholders
Q. We need to conduct management audit for
a. Taking over and reviving sick units
b. Helps in foreign collaboration
c. (a) and (b)
d. None of the above .
Q. EDP audit means when an audit is conducted in a computer information systems (CIS) environment. According to SA-401
a. ASS-29
b. AAS-29
c. ASS-28
d. AAS-28
Q. The pillars of corporate governance are
a. Accountability,fairness
b. Fairness, transparency and responsibility
c. Responsibility, transparency only
d. (a) and (b)
Q. The regulatory framework of corporate governance in India is three tiered comprising of the
a. MCA, SEBI and Stock Exchanges.(SE)
b. MCA, SEBI and FERA
c. SEBI, FEMA and Stock Exchanges(SE)
d. SCRA, MCA and Chartered Accountant Act.
Q. Corporate scams or scandals arise with the disclosure of
a. Misdeeds by trusted executives of large public corporations
b. Misdeeds by trusted executive s of small public corporations
c. (a) and (b)
d. Only (a)