Auditing MCQs

Question 1

Which of the following acts do not have any coverage under Secretarial Audit?

Accepted Answer

Answer

The Companies Act, 1956 and the rules made under there

Answer

The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made under there

Answer

Foreign Exchange Management Act, 1999 and the rules & regulations made under there

Answer

Specific Regulation of Securities and Exchange Board of India Act, 1992

Question 2

The statutory auditor is duty-bound to :

Accepted Answer

Submit a report to the members of the company

Answer

Review the managerial processes and procedures

Answer

Prepare the final accounts of the company in accordance with the provisions of the company law

Answer

Verify physically the various assets of the company

Question 3

The main object of an audit of accounts of a joint-stock company is

Accepted Answer

To find out whether the balance sheet and profit and loss account are drawn up properly according to the Companies Act, and they represent a trace and fair view of the state of affairs

Answer

Detection and prevention of errors

Answer

Detection and prevention of frauds

Answer

Detection and prevention of errors and frauds

Question 4

Which of the following are the rights of a Statutory Auditor? 1. To receive remuneration 2. To attend Board of Directors' Meeting 3. To attend the General Meeting 4. To visit the branch office Choose the correct answer from the following:

Accepted Answer

1, 3 and 4

Answer

1 and 2

Answer

1, 2 and 4

Answer

1, 2, 3 and 4

Question 5

The technique(s) of management audit is/are 1. Co-relation of information 2. Observation 3. Ratio analysis 4. Financial data analysis

Accepted Answer

All of the above

Answer

Only 2

Answer

Both 2 and 3

Answer

Both 1 and 4

Question 6

The value at which the assets are shown in the books of account is known as

Accepted Answer

Book value

Answer

Market value

Answer

Cost value

Answer

Replacement value

Question 7

Auditing is luxury for:

Accepted Answer

Small shop-keeper

Answer

Joint stock company

Answer

Partnership firm

Answer

Government company

Question 8

What is the maximum time limit for submitting management audit report?

Accepted Answer

20 days

Answer

15 days

Answer

30 days

Answer

No time limit

Question 9

The remuneration of an auditor of a partnership firm is fixed by

Accepted Answer

None of the above

Answer

The Partnership Act

Answer

The Companies Act

Answer

Government