Top 150+ Solved Auditing Corporate Governance MCQ Questions Answer
Q. A vacancy caused by resignation of the auditor is filled only
a. By Board of Directors
b. At the general meeting of shareholders
c. By the Central Government
d. By the Company Law Board
Q. Civil liability of an auditor implies liability for
a. Misappropriation of cash
b. Misappropriation of goods
c. Fraud
d. Misfeasance
Q. ___________of the Companies act 2013 lays down provisions regarding the eligibility of appointment of an auditor.
a. Sec 141
b. Sec 142
c. Sec 143
d. Sec 144
Q. Which of the following is not types of auditor
a. First auditor
b. Subsequent auditor
c. Casual vacancy
d. Last auditor
Q. In case of first auditor appointed by the board of directors, who would fix remuneration
a. Board of directors
b. Shareholders
c. Debenture holders
d. Creditors
Q. The tenure of first auditor shall be from the date of appointment till
a. The conclusion of first annual general meeting
b. The beginning of first annual general meeting
c. The conclusion of the second annual general meeting
d. The conclusion of special meeting
Q. Which of the following is an element of the Audit Report
a. Title& addressee
b. Introductory, scope and opinion paragraph
c. Date, place and auditors signature
d. All of the above
Q. The auditor who authorized the issue of misstatements in prospectus can beimprisoned for a term which may extend to
a. 5 years
b. 7 years
c. 8 years
d. 10 years
Q. Which of the following is not the types of audit report based on the kind of opinion
a. Unmodified opinion report
b. Audit report with an emphasis of matter paragraph
c. Modified report
d. None
Q. In case the Board of Directors fails to appoint first auditors, the shareholders shall appoint them at _______ by passing a resolution.
a. Extraordinary general meeting.
b. First annual general meeting.
c. Statutory meeting.
d. Annual general meeting
Q. Which of the following statement is not correct regarding removal of first auditorbefore expiry of the term?
a. He is removed at a general meeting.
b. The approval of the central government is required for such removal.
c. The provision for removal are contained in sec 140(1) of Companies Act, 2013
d. The shareholders are authorized to do so
Q. The board of directors shall appoint first auditor of a company ___________.
a. Within one month of completion of capital subscription state of the company
b. Within one month of the promotion of the company.
c. Within one month of the commencement of the business of the company.
d. Within one month of incorporation of the company.
Q. The first auditor of a government company shall be appointed within 60 days from thedate of registration of the company by.
a. The government company itself.
b. The Comptroller and Auditor General of India
c. The central government.
d. The shareholders.
Q. The liabilities of an auditor can be _________.
a. Civil
b. Criminal
c. Civil and Criminal.
d. Official
Q. is issued when the auditor is completely satisfied that there is nothing objectionable
a. Standard Unqualified Report or Clean Report
b. Qualified opinion
c. Disclaimer of opinion
d. Adverse opinion