Top 250+ Solved Auditing MCQ Questions Answer
Q. In case the directions fail to appoint first auditor (s), the shareholders shall appointthem at…..by passing a resolution
a. a general meeting
b. first annual general meeting
c. statutory meeting
d. annual general meeting
Q. Which of the following statement is not true regarding appointment of statutoryauditor by the Central Government?
a. Such powers have been conferred upon it by section 224(3)
b. If a company fails to appoint an auditor at a general meeting
c. If an auditor refuses to accept appointment, the powers of the Central
d. None of the above
Q. If a casual vacancy in the office of auditor arises by his resignation it should only befilled by the company in a……..
a. Board meeting
b. Extraordinary general meeting
c. General meeting
d. Annual general meeting
Q. For the purposes of section 224(IB) the number of partners of a firm which shall betaken into account would be as on the date of _
a. Completion of audit
b. Auditor’s report
c. Acceptance of audit
d. Starting of audit work
Q. Which of the following is counted for the purposes of section 224(IB) the number ofpartners of a firm which shall be taken into account would be as on the data of ___
a. Joint audit
b. Audit to non-profit companies
c. Audit of unlimited companies
d. All of the above
Q. Mr. A, a Charted Accountant, has nineteen audits, Out of following audits whichaudits should he accept to ensure he doesn’t violate provisions of section 224(IB) __
a. Audit of a private company
b. Audit of branch of a foreign company
c. Audit of two branches of an Indian company
d. All of them
Q. Which audit out of the following would not be regarded as one audit for the purposesof section 224(IB)?
a. Audit of one branch each of two different companies
b. Joint audit
c. Audit head office & branches
d. Audit of one or more branches of a company
Q. The auditor of a Government company is appointed by the C & AG. His remunerationis fixed by__
a. The C & AG
b. The shareholders
c. The shareholders at an annual general meeting
d. The board of directors
Q. The section which contains provisions regarding remuneration of the auditor is_
a. Section 224(9)
b. Section 224(7)
c. Section 224(8)
d. Section 224(6)
Q. The authority to remove the first auditor before the expiry of term is with_
a. The shareholders in a general meeting
b. The shareholders in the first annual General meeting
c. The board of directors
d. the Central Government
Q. Which of the following statements is not correct regarding removal of first auditorbefore expiry of the term?
a. He is removed at a general meeting
b. The shareholders are authorized to do so
c. The approval of the Central Government is required for such removal
d. The provisions for such removal are contained in section 224(7)
Q. The retiring auditor does not have a right to___
a. make written representations
b. get his representations circulated.
c. be heard at the meeting
d. speak as a member of the company
Q. Who out of the following cannot be appointed as a statutory auditor of the company?
a. Erstwhile director
b. Internal auditor
c. Relative of a director
d. Only (b) and (c)
Q. A statutory auditor has a right of access at all times to
a. Books and accounts of a company
b. Books, accounts and documents of the company
c. Books, accounts and vouchers of the company
d. Notices and documents of the company
Q. The auditor has a right to
a. Obtain information and explanation
b. Obtain information and explanation from the employees and officers
c. Obtain information and explanation necessary for the purpose of audit
d. Both (b) and (c)