Top 150+ Solved Practical Auditing MCQ Questions Answer
Q. -------------------- audit is not a statuary requirement
a. Management
b. Financial
c. Tax Audit
d. none
Q. ----------------- audit refers to the evaluation of company’s performance against plannedgoals in the areas of social responsibility.
a. Cost audit
b. Social audit
c. Management audit
d. none
Q. Bonus shares are issued to ----------------
a. New members
b. Existing share holders
c. Employees
d. none
Q. -------- Section of the Companies Act deals with Appointment of Company auditor.
a. Sec-226
b. Sec-224
c. Sec-227
d. none
Q. -------- Section of the Companies Act deals with qualification of Company auditor.
a. Sec-226
b. Sec-224
c. Sec-227
d. none
Q. Amount of Share premium may be utilized for
a. Payment of dividend
b. Writing of preliminary expenses
c. Routine expense
d. none
Q. Share Premium Account should be shown in Balance sheet under
a. Paid-up capital
b. Subscribed capital
c. Reserves and surpluses
d. none
Q. Auditor should see that amount received for premium on issue of shares should be shown in
a. Subscribed capital
b. Capital Reserve Account
c. Share Premium Account
d. none
Q. A company can issue redeemable preference shares if authorized by
a. Memorandum of Association
b. Articles of Association
c. Companies Act-1956
d. none
Q. A company can issue bonus shares if authorized by
a. Memorandum of Association
b. Articles of Association
c. Companies Act-1956
d. none
Q. Interest on calls paid in advance according to table A, should not exceed
a. 6%
b. 5%
c. 10%
d. none
Q. For the forfeiture of shares, the auditor should check that it is permitted
a. Memorandum of Association
b. By articles of association
c. Under Companies Act 1956
d. none
Q. Profits on reissue of forfeited Shares should be transferred to
a. Share forfeited Account
b. Capital Reserve Account
c. Profit and Loss Account
d. none
Q. Shares issued for consideration other than cash should be vouched with the help of
a. Director’s minute Book
b. Shareholder’s minute Book
c. Contact with the party concerned
d. none
Q. While checking the 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. none