Auditing - Questions and Answers for Competitive Exams | GkSeries

49. Which of the following sections deals with qualification of the auditor?

• [A] Section 226(1) and Section 226(2).
• [B] Section 224(1) and Section 224(2).
• [C] Section 226(3) and Section 226(4).
• [D] Section 224(3) and Section 224(4)

Answer: Option [A]

50. 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.

Answer: Option [D]

51. In case the directions fail to appoint first auditors, the shareholders shall appoint them at _______ by passing a resolution.

• [A] a general meeting.
• [B] first annual general meeting.
• [C] statutory meeting.
• [D] annual general meeting

Answer: Option [A]

52. The auditor of a government company is appointed by the C & AG. His remuneration is fixed by _____________.

• [A] the C & AG.
• [B] the shareholders.
• [C] the shareholders at an annual general meeting.
• [D] the board of directors.

Answer: Option [B]

53. Which of the following statement is not correct regarding removal of first auditor before 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 provision for such removal are contained in section 224(7)

Answer: Option [C]

54. The retiring auditor does not have a right to _________.

• [A] make written representations.
• [B] get his representation circulated.
• [C] be heard at the meeting.
• [D] speak as a member of the company.

Answer: Option [D]

55. Auditor of a _______ company does not have right to visit foreign branches of the company.

• [A] unlimited liability.
• [B] manufacturing
• [C] banking
• [D] non-profit making.

Answer: Option [B]

56. Special audit is conducted at the order of the central government. Which section givers such powers?

• [A] Section 233(A).
• [B] section 233(B)
• [C] section 242(A)
• [D] Section 242(B).

Answer: Option [C]

57. As per C & AG Act, 1971 the tenure of the comptroller and Auditor General is ______ a. four years.

• [A] four years.
• [B] five years.
• [C] six years.
• [D] seven years.

Answer: Option [C]

58. Audit of transactions does not include __________.

• [A] propriety audit.
• [B] efficiency cum performance audit.
• [C] audit of receipts.
• [D] audit of expenditure.

Answer: Option [B]

59. Audit of rent, deposits and remittances does not cover ____________.

• [A] audit of borrowings.
• [B] audit of amortization of debt.
• [C] audit of sanctions
• [D] remittance audit.

Answer: Option [C]

60. The statutory auditor of a Government Company submits his report to _________

• [A] the BOD of the company
• [B] the C & AG.
• [C] the legislature.
• [D] the company secretary.

Answer: Option [B]