MCQ on Auditing and Corporate Governance Unit-2

MCQ on Auditing and Corporate Governance

Set- 1(Audit of limited companies)

Here you can get MCQ on Auditing and Corporate Governance Unit-2 that is Audit of limited companies . Most important for the B.com student and commerce students of all university.

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Commerce MCQ

(1) An auditor in a casual vacancy is appointed by…………..

(a) president

(b) Share holder

(c) Board of Directors

(d) None of the above

Ans. (c) Board of Directors

(2) When an auditor is not appointed at annual general meeting, he is appointed by

(a) State government

(b) The Central Government

(c) Collector

(d) None of the above

Ans. (b) The Central Government

(3) A vacancy caused by resignation of the auditor is filled by…………

(a) At the general meeting of shareholders

(b) Class meeting

(c) Contributory meeting

(d) None of the above

Ans. (a) At the general meeting of shareholders

(4) A company auditor can be removed before expiry of his term by…………..

(a) Debenture holder

(b) Shareholders

(c) Both

(d) None of the above

Ans. (b) Shareholders

(5) Remuneration of a company auditor is fixed by the…………

(a) Appointing authority

(b) Central govt.

(c) Share holder

(d) None of the above

Ans. (a) Appointing authority

(6) An Auditor, in general is called as an Agent of the…………

(a) Shareholders

(b) Debenture holder

(c) Partner

(d) None of the above

Ans. (a) Shareholders

(7) Civil liability of an auditor includes Liability for negligence, Liability for misfeasance and Liability under

(a)partnership act

(b) Companies Act

(c) liability act

(d) None of the above

Ans. (b) Companies Act

(8) When auditor not disclosed the misuse of funds by management, it is termed as….

(a) Misfeasance

(b) Funds eating

(c) misuse funda

(d) None of the above

Ans. (a) Misfeasance

(9) When an auditor wilfully makes a false statement in report, it is termed as……..

(a) Misfeasance

(b) Goodness

(c) Criminal offence

(d) None of the above

Ans. (c) Criminal offence

10) If an auditor is found guilty of falsification of a company books, he will incur

(a) Criminal liability

(b) Criminal assets

(c) Both

(d) None of the above

Ans. (a) Criminal liability

(11) The liability of an auditor can be either civil or ………..

(a) Criminal

(b) Evil

(c) both

(d) None of the above

Ans. (a) Criminal

(12) By whom the First auditor of a company is appointed?

(a) creditor

(b) Debenture holder

(c) Board of Directors

(d) None of the above

Ans. (c) Board of Directors

(13) Who qualifies to be a company auditor?

(a) A practising chartered accountant

(b) Qualified SSC CGL

(c) Accountant

(d) None of the above

Ans. (a) A practising chartered accountant

(14) How long the first auditor of a company will hold his office?

(a) After reconstruction

(b) Till the end of first annual general meeting

(c) Liquidation

(d) None of the above

Ans. (b) Till the end of first annual general meeting

(15) Normally, who appoints a company auditor?

(a) Shareholders

(b) Creditor

(c) Owner

(d) None of the above

Ans. (a) Shareholders

(16) A Government Company auditor may be appointed by whom?

(a) C S

(b) C A & S

(c) C & A G

(d) None of the above

Ans. (c) C & A G

(17) When the auditor does not perform his work under his duty, it is termed as ?

(a) Misfeasance

(b) Misrepresentation

(c) Unfair audit

(d) None of the above

Ans. (a) Misfeasance

(18) When an auditor does not perform his duty with reasonable care and prudently, it is termed as ?

(a) Negligence

(b) Poor work

(c) Both

(d) None of the above

Ans. (a) Negligence

(19) By whom the special audit of a company is get done –

(a) BOD

(b) Shareholder

(c) Central Government

(d) None of the above

Ans. (c) Central Government

20) When an auditor is punishable by Penalty Imprisonment or both, such liability is called as ?

(a) Criminal liability

(b) Civil liability

(c) balance liability

(d) None of the above

Ans. (a) Criminal liability

21) Taking the bribe during the audit course is treated as a

(a) Civil liability

(b) Criminal liability

(c) Partnership liability

(d) None of the above

Ans. (b) Criminal liability

(22) Destruction of vouchers by Auditor is a

(a) Civil liability

(b) Criminal liability

(c) Both

(d) None of the above

Ans. (b) Criminal liability
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