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Auditing Mcqs

Which of the following is not a corroborative evidence?

  • (A)  Minutes of meetings
  • (B)  Confirmations from debtors
  • (C)  Information gathered by auditor through observation
  • (D)  Worksheet supporting consolidated financial statements
Submitted By :Ali Uppal


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
Submitted By :Ali Uppal


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 (
Submitted By :Ali Uppal


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
Submitted By :Ali Uppal


If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a_________?

  • (A)  Board meeting
  • (B)  extraordinary general meeting
  • (C)  General meeting
  • (D)  annual general meeting
Submitted By :Ali Uppal


In case the directions fail to appoint first auditor (s), 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
Submitted By :Ali Uppal


The term of the auditor ship of first auditor would be from the date of appointment till________?

  • (A)  the conclusion of statutory meeting
  • (B)  the conclusion of first annual general meeting
  • (C)  the conclusion of next annual general meeting
  • (D)  the date of removal
Submitted By :Ali Uppal


The board of directors shall appoint first auditor of a company

  • (A)  With in one month of completion of capital subscription state of the company
  • (B)  With in one month of the promotion of the company
  • (C)  With in one month of the commencement of the business of the company
  • (D)  With in one month of incorporation of the company
Submitted By :Ali Uppal


Who is responsible for the appointment of statutory auditor of a limited company ?

  • (A)  Directors of the company
  • (B)  Members of the company
  • (C)  The Central Government
  • (D)  All of the above
Submitted By :Ali Uppal


Which of the following expenses should not be treated as capital expenditure?

  • (A)  Expenses paid on installation of a plant.
  • (B)  Cost of dismantling a building in case a new building is to be constructed on the land
  • (C)  Legal expenses incurred to defend a suit related to title of patent.
  • (D)  The fees paid to engineer who constructed the plant.
Submitted By :Ali Uppal