Practice Test

Q1) The first auditors of a company are appointed Show Answer

Q2) Every company shall at each annual general meeting appoint an auditor who will hold office Show Answer

Q3) The auditor of a government company is appointed by Show Answer

Q4) Any auditor appointed in a casual vacancy shall hold office Show Answer

Q5) In the case of a company in which not less than 25% of the subscribes share capital is held by any of the specified financial institutions Show Answer

Q6) Who is primarily responsible for the appointment of statutory auditor of a limited company Show Answer

Q7) Which of the following sections of the companies Act deal with qualifications of the auditor? Show Answer

Q8) Which of the following statement is not true? Show Answer

Q9) The board of directors shall appoint first auditor of a company Show Answer

Q10) If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a Show Answer

Q11) The authority to remove the first auditor before the expiry of term Is with Show Answer

Q12) Which of the following statements is not correct regarding removal of first auditor before expiry of the term? Show Answer

Q13) The retiring auditor does not have right to Show Answer

Q14) Who out of the following cannot be appointed as a statutory auditor of the company Show Answer

Q15) The remuneration of an auditor of a company may be fixed by the board of directors in case of Show Answer

Q16) The remuneration of an auditor of a company may not be fixed by the shareholders in case of Show Answer

Q17) the rights of the company auditor Show Answer

Q18) The first auditors of a company are appointed by the directors in the first meeting of the board of directors to be held within _____days of the incorporation of the company. Show Answer

Q19) The provisions of law relating to appointment and removal of auditor ensure the independence of_____. Show Answer

Q20) A ______auditor is the only non chartered accountant who can be appointed as the auditor of a company. Show Answer

Q21) The auditor of a government company is appointed by the _______ Show Answer

Q22) Any auditor appointed in a casual vacancy shall hold office until the ______of the next annual general meeting. Show Answer

Q23) In the case of a company in which not less than 25% of the subscribed share capital is held by any of the specified financial institutions the appointment of an auditor shall be made by a ___resolution. Show Answer

Q24) A partnership firm ______ appointed as a statutory auditor of limited company. Show Answer

Q25) If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a ____meeting. Show Answer

Q26) The approval of the central government ______required for the removal of first auditor Show Answer

Q27) A person who has given any guarantee in connection with the loan of any third persons to the company for an amount exceeding one thousand rupees ____qualified to be appointed as an auditor of that company. Show Answer

Q28) A director or a member of the private company ____qualified to be appointed as an auditor of that company. Show Answer

Q29) Section 226 of the companies Act 1956 states that any chartered accountant whether in practice or not can be appointed as the auditor of a company. Show Answer

Q30) Section 226 of the companies Act 1956 states that a firm whereof the majority of partners are chartered accountants practicing in India may be appointed as an auditor by its firm name Show Answer

Q31) A body corporate whereof all the members are chartered accountants practicing in India may be appointed as an auditor of a company Show Answer

Q32) An officer or employee of the company who is a chartered accountant practicing in India may be appointed as an auditor of the company. Show Answer

Q33) A chartered accountant practicing in India who is a partner of an officer or employee of the company may be appointed as an auditor of the company Show Answer

Q34) A debtor of the company for an amount exceeding one thousand rupees cannot be appointed as the auditor of a company Show Answer

Q35) A creditor of the company for an amount exceeding one thousand rupees cannot be appointed as the auditor of a company. Show Answer

Q36) A shareholder of the company cannot be appointed as the auditor of a company. Show Answer

Q37) A shareholder of the company holding shares of less then one thousand rupees can be appointed as the auditor of a company Show Answer

Q38) The first auditors of a company` are appointed by the directors in the first meeting of the board of directors to be held within 30 days of obtaining the certificate of commencement of the company Show Answer

Q39) The first auditors of a company are appointed by the shareholders in the first meeting of the members to be held within 30 days of the date of incorporation of the company. Show Answer

Q40) The auditor of Government Company is appointed by the shareholders. Show Answer

Q41) The auditor of a government company is appointed by the comptroller and auditor general of India. Show Answer

Q42) Any casual vacancy in the post of an auditor shall be filled by the company in general meeting Show Answer

Q43) Where a vacancy is caused due to the death of an auditor the vacancy may be filled by the board of directors Show Answer

Q44) When one of the two joint auditors resigns the remaining auditor cannot continue to act as the auditor Show Answer

Q45) In the case of a company in which not more than 25%of the p aid up share capital is heldby any of the specified financial institutions the appointment of an auditor shall be made by a special resolution. Show Answer

Q46) In the case of a company in which not less than 75% of the subscribed share capital is held by any of the specified financial institutions the appointment of an auditor shall be made by a special resolution. Show Answer

Q47) The first auditor appointed by the board of director scan be removed by the board of directors before the expiry of his term without obtaining the previous approval of the shareholders Show Answer

Q48) The first auditor appointed by the board of directors, can be removed by the shareholders at a general meeting before the expiry of his term only after obtaining the previous aproval of the central government. Show Answer

Q49) The first auditor appointed by the shareholders can be removed by the board of directors before the expiry of his term, without obtaining the previous approval of central government Show Answer

Q50) Any auditor other than the first auditor can be removed before the expiry of his term by the company only at a general meeting after passing a special resolution. Show Answer

Q51) An auditor can be removed only by the authority (board, shareholders or central government) which appointed by him. Show Answer

Q52) Every company auditor is a chartered accountant but every chartered accountant cannot be an auditor of a company. Show Answer

Q53) An auditor must retire once he attains the age of 60. Show Answer

Q54) If the auditor is inefficient, directors can change him even before his term is over Show Answer

Q55) A partner of a firm whereof all the partners are chartered accountants practicing in India may be appointed as an auditor in his individual name. Show Answer

Q56) Any resolution limiting the powers of the auditor will be void. Show Answer

Q57) Every auditor of a company shall have a right of access only to those books and accounts vouchers of the company kept at the registered office of the company. Show Answer

Q58) Every auditor of a company shall have right of access only to those books and accounts and vouchers of the company prepared after the date of his appointment. Show Answer

Q59) Every auditor of a company shall have a right of access to books and accounts and vouchers of the company only after the end of the financial year. Show Answer

Q60) Once a separate branch auditor is appointed the company auditor cannot visit the branch office Show Answer

Q61) Once a separate branch auditor is appointed the company auditor cannot have a right of access to the books and vouchers of the company maintained at the branch office. Show Answer

Q62) The auditor shall be entitled to vote at any general meeting on any part of the business which concerns him as auditor. Show Answer

Q63) The first auditor appointed by the board of directors can be removed by the board at its subsequent meeting. Show Answer

Q64) Government companies are also to be considered for the ceiling on number of audits. Show Answer

Q65) Whoever appoints the auditor the remuneration is always fixed by the shareholders Show Answer

Q66) An auditor can be removed only after a special resolution to this effect is approved by the shareholders in a general meeting. Show Answer

Q67) The observation or comments of the auditors which have any adverse effect on the functioning of the company shall be printed in the auditors report in bold & Italic letters Show Answer

Q68) An auditor can be appointed as first auditor of a newly formed company simply because his name has been stated in the articles of association. Show Answer

Q69) Company'sauditor may be appointed by Show Answer

Q70) Auditor has a right to receive notice and ______the general meeting of the company Show Answer

Q71) First auditor of a newly formed company can be oppointed by the Board of Directors within______ Show Answer

Q72) The _____duties of an auditor are fixed under the companies Act 1956 Show Answer

Q73) Appointment of subsequent auditor to be made by the shareholders at every Show Answer

Q74) If company fails to inform the central government, how much fine company has to pay? Show Answer

Q75) Failure to appoint Auditor at Annual General meeting should be communicated within 7 days of AGM to. Show Answer

Q76) Company has to inform central government within how many days? Show Answer

Q77) The audit working papers are the property of Show Answer

Q78) If vacancy is caused by death or insanity who has a right to appoint new auditor? Show Answer

Q79) As per company law an auditor is disqualified for appointment in Show Answer

Q80) If BOD and shareholders cannot appoint auditor then who has a right to appoint auditor? Show Answer

Q81) The auditor has to inform the register about his acceptance within Show Answer

Q82) What is the full form of CAG? Show Answer

Q83) What is the 1st duty of Auditor Show Answer

Q84) The vacancy caused by death of the auditor can be filled in by Show Answer

Q85) What are the duties of Auditor? Show Answer

Q86) Who can audit the branches of company? Show Answer

Q87) What are the Qualification required to be a Auditor? Show Answer

Q88) The person to act as a watch dog is Show Answer

Q89) It is compulsory to pay fine if thecompany fails to inform the central governement about failure of appointment of auditor? Show Answer

Q90) Branch auditor can be Show Answer

Q91) Auditors can be removed by _______ Show Answer

Q92) The auditor must be Show Answer

Q93) Auditors of a company are always appointed by passing an ordinary resolution. Show Answer

Q94) The first auditor is appointed by Show Answer

Q95) Who is responsible for the appointment of statutory auditor of a limited company? Show Answer

Q96) In case the directors fails to appoint first auditor(s), the shareholders shall appoint them at ________. Show Answer

Q97) The right of the auditor is to Show Answer

Q98) If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a ________. Show Answer

Q99) The auditor of a government company is appointed by the CAG. His remuneration is fixed by: Show Answer

Q100) The authority to remove the first auditor before expiry of the term is with Show Answer

Q101) Who out of the following cannot be appointed as a statutory auditor of the company? Show Answer

Q102) First auditor is appointed under section Show Answer

Q103) The Branch auditor is appointed by ? Show Answer