Top 150+ Solved Auditing Corporate Governance MCQ Questions Answer
Q. A casual vacancy in the office of an auditor shall be filled by.
a. Board of Directors.
b. Managing Director.
c. General meeting.
d. Central Government.
Q. Who among the following cannot be appointed as auditor of a company?
a. A person who is a Chartered Accountant within the meaning of CA Act, 1949 and holds a certificate of practice.
b. Officer or employee of the company
c. A Chartered Accountant who is an auditor of more than 20 companies
d. Both (b) & (c)
Q. First auditor of a company shall be appointed by the Board of Directors within
a. 30 days
b. 40 days
c. 45 days
d. 60 days
Q. Removal of auditor that requires special resolution and previous approval of the Central Government
a. Resignation of Auditor
b. Retirement of Auditor
c. Removal of Auditor before expiry of term
d. Removal of Auditor after expiry of term
Q. The section which contains provisions regarding remuneration of the auditor is
a. Section 140(1)
b. Section 142
c. Section 139
d. Section 141
Q. The principal rights conferred upon the auditor by the Companies Act, 2013
a. Right to sign audit reports
b. Right to get his representation circulated
c. Right to speak as a member of the company
d. Right to make a written representation
Q. The matters on which an auditor has a duty to report under Section 143 (3)can broadlydivided into two categories, namely
a. Statement of fact and opinion
b. Accounts examined and every financial statement during his tenure
c. Both (a) & (b)
d. Only (b)
Q. Report issued when the auditor on the basis of sufficient appropriate audit evidence, concludes that misstatements are both material and pervasive to the financial statement
a. Unqualified report
b. Disclaimer of opinion report
c. Qualified report
d. Adverse report
Q. The sections of the Act under which an auditor ac be held criminally liable are
a. Section 34
b. Section 147
c. Section 448
d. All of the above
Q. An arrangement of accounting routine that errors and frauds are automatically prevented or discovered by the very operation of bookkeeping itself is called
a. Internal control
b. Internal check
c. Interim audit
d. Partial audit.
Q. The examination of documentary evidence in support of transactions contained in the books of accounts is referred to as
a. Voucher
b. Verification
c. Internal verification
d. Vouching
Q. Section --------------of the companies Act,2013 detailed the qualification of companyAuditors.
a. 141
b. 141(ab)
c. 140
d. 140(ab)
Q. The first auditor of a company, other than a Government company, shall be appointedby
a. Shareholders
b. CEO
c. AGM
d. Board of Directors.
Q. Select which one is not under the right of an Auditor
a. Right to obtain information and explanation
b. Right to visit branch office
c. Right to sign the audit report
d. Right to select the next auditor
Q. The civil liability of an auditor can be for
a. Negligence
b. Misfeasance
c. Negligence and misfeasance
d. None of the above.