T.Y B.COM
SEMESTER - 6
COMPANY AUDIT
(CA)
MCQS - 2020
1. Reporting of fraud under section 143(12) of Companies Act, 2013 read with Rule 13 of CAAR, 2014 involving amount of less than Rs 1 crore can be reported by Auditor to _________.
A board/Audit Committee
B shareholders
C National Company Law Tribunal within 45 days
D Central Government
2. The company shall inform the auditor concerned of his or its appointment, and also file a notice of such appointment with the Registrar within _________ days of the meeting in which the auditor is appointed.
A 15
B 90
C 60
D 30
3. Bonus share may be distributed by the company out of the following ___________.
A capital redemption reserve
B Free reserve
C securities premium account
D A, B & C
4. Remuneration of Auditor as per section 142 of the Companies Act, 2013 includes,
A Fees to auditor
B Expenses if any incurred by auditor for audit
C Cost of any facility provided to him
D All of the above
5. Investigator has to be professionally qualified _________.
A Company secretary only
B Cost Accountant only
C Chartered Accountant only
D None of the above
6. The application for removal of auditor before expiry of his term shall be made to Central Government within 30 days of ________.
A Board Resolution
B Ordinary Resolution at AGM
C Special Resolution at AGM
D None of the above
7. According to section 141 (1) of the Companies Act, 2013, a person shall be eligible for appointment as _______ of a company only if he/she is a ________.
A an-auditor, Independent
B a director, Chartered Accountant
C an auditor, Chartered Accountant
D a director, Independent
8. Amount of dividend which remain unpaid or unclaimed shall be transferred to any schedule bank called unpaid dividend account under section 124(1) within ________ days.
A five
B Seven
C thirty
D ten
9. The first auditor of a company, other than a government company shall be appointed by the _____ within _______ days from the date of registration of the company.
A Broad of directors, 30
B CAG, 30
C board of directors, 60
D CAG, 60
10. Rotation of auditors under section 139(2) is applicable to all unlisted public companies having paid up share capital greater than or equal to Rs __________.
A 50 crores
B 10 crores
C 20 crores
D 40 crores
11. Subsequent auditor in case of government company, defined u/s 2(45) [Section 139(5)], will be appointed by CAG within _________ days from the commencement of the year.
A 30
B 180
C 90
D 60
12. Jyot Ltd. has earned no profits during the current year, desires to declare dividend from the past profits. In such case the rate of dividend declared shall not exceed the average of the rates at which dividend was declared in the __________ years immediately preceding that year.
A 5
B 10
C 7
D 3
13. The auditor who has resigned from the company (other than government company) shall file within a period of __________ days from the date of resignation a statement in prescribed form to the company and registrar.
A 45
B 15
C 2
D 30
14. Which of the following statement is FALSE for investigation?
A Investigation is usually carried out on test check basis
B Investigation may cover several years to arrive at the conclusion.
C Investigation is carried out for specific purpose
D Investigation looks for substantive evidences
15. The auditor appointed under section 139 may be removed from his office before the expiry of his term only by __________.
A ordinary resolution of the company
B special resolution of the company
C A and B
D resolution of the board
16. In case of removal of an auditor, if copy of representation is not sent to the members, a copy thereof shall be filed with ________.
A Registrar
B Central Government
C National company law tribunal
D audit committee
17. A person is disqualified to be appointed as auditor of the company if he himself or his relative or partner is indebted to the company for an amount exceeding Rs. _________.
A 4,00,000
B 2,00,000
C 5,00,000
D 1,00,000
18. CA Ramkrishan is a member of the ICAI, does not hold a Certificate of practice. His appointment as an auditor is _________.
A valid only after approval by Board of Directors
B valid
C valid only after approval by Shareholders at AGM
D invalid
19. Where a dividend has been declared by Company but has not been paid or claimed within thirty days from the date of the declaration, the company shall transfer the total amount of such dividend to a special account to be opened in any scheduled bank to be called
A unpaid and deferred Dividend Account.
B Deferred Dividend Account.
C unpaid Dividend Account.
D Outstanding Dividend Account.
20. when total amount collected on reissue or shares is more than the par value of share than the auditor should ascertain whether surplus amount has been credited to ________ account.
A general reserve
B secret reserve
C capital reserve
D security premium account
21. The amount of dividend including interim dividend shall be deposited in a schedule bank in a separate account within how many days from the date of declaration of such dividend Sec.123 (4).
A 05 Days
B 15 Days
D 10 Days
C 90 Days
22. In case of non-government company, any casual vacancy of an auditor shall be filled by _______ within _______days.
A CAG, 30
B board of directors, 30
C CAG, 60
D board of directors, 60
23. Sweat Equity shares may be issued by the company are of ________.
A New type of shares
B A class of shares already issued
C Both (A) & (B)
D None of the above
24. A practicing chartered accountant can hold a securities of a company upto face value of Rs ________.
A 2,00,000
B Nil
C 50,000
D 1,00,000
25. In case of joint stock companies, audit is __________ while investigation is __________.
A Optional, Compulsory
B Discretionary, Mandatory
C Compulsory, Optional
D Non-Mandatory, Compulsory
26. Investigation is conducted
A As and when required
B every 3 to 5 years
C Yearly
D Regularly
27. As per section 52 of the Companies Act, 2013 the Securities Premium Account may be applied by the company for which of the following purpose?
A For the purchase of its own shares or other securities under section
68
B For providing for the premium payable on the redemption of preference shares
C To write off preliminary expenses of the company
D All of the above
28 _________ is the act of detail examination of activities so as to achieve specific objectives.
A Screening
B Audit
C Interrogation
D Investigation
29. The remuneration of first auditor appointed by board of directors shall be fixed by ________.
A Central Government
B CAG
C Company
D Board of Directors
30. First auditor in case of a company (other than Government Company) u/s 139(6) will be appointed in EGM within __________ days.
A 30
B 180
C 45
D 90
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