B.Com 3rd Year Auditing Online Test Auditing Chapter 9th = Appointment, Remuneration, Rights and Duties of an Auditor /51 18 This Quiz Time only 2 hours Your Time is Finish 2 hours Thanks for Giving This Test. All Question Appointment, Remuneration, Rights and Duties of an Auditor Appointment, Remuneration, Rights and Duties of an Auditor Please Give Your Information For start the Quiz NameEmailPhone Number 1 / 51 51. In which case it was held that an auditor should verify the existence of securities – City Equitable Fire Insurance Co. 1925 London and General Bank Ltd. 1885 Kingston Cotton Mills Ltd. 1896 None of these 2 / 51 50. A company auditor can attend General Meeting of a company as a matter of – Right Duty Both (a) and (b)’ He can not attend general meeting 3 / 51 49. An auditor should do his work with – Honestly Tactfully and censessly Both (a) and (b) Suspicion 4 / 51 48. An Auditor can – Give guarantee of truthness Not give guarantee of truthness Give fraudulent report None of above 5 / 51 47. An auditor should have……. on company employees. Belief Disbelief Suspicion None of above 6 / 51 46. An Auditor should see – Arithmetical accuracy Fraud irregularities Both (a) and (b) None of above 7 / 51 45. It is the duty of auditor – To give report regarding his work To give information of the correctness of the profit and loss A/c and Balance sheet To use the Audit Report of Branches All above 8 / 51 44. Where clause of Companies Act are violated, the auditor should give his report to – Shareholders Managing director Board of directors Central government 9 / 51 43. Special audit is necessary for – Inefficient concern Trading concern Manufacturing concern Processing concern 10 / 51 42. Joint Audit implies – Audit of two concerns together Audit of joint stock companies Audit by two firms of Chartered Accountant None of these 11 / 51 41. The company auditor has a right to be – Indemnified Consulted Re-appointed None of these 12 / 51 40. Duties and rights of an internal auditor is determined by – Company Act Management of Company Comptroller and Auditor General of India Shareholders 13 / 51 39. In which case it was held that ‘Auditor is not an insurer, he can not give guarantee of accuracy of balance sheet”? London and General Bank Case, 1895 The Kingston Cotton Mills Co. Ltd. 1896 Armitage vs. Brivar and Knott Case None of these 14 / 51 38. It is the duty of company auditor that he should give his report to – Directors of the company Central Government Shareholders of the company Debentureholders 15 / 51 37. In which of the following case decision is given that an auditor should work with diligently, carefully and tactfully – Kingston Cotton Mills Ltd. 1869 London Oil Storage Co. Vs. Sheer Husluck and Co C.I. Bill Fire Insurance Co. Ltd. None of above 16 / 51 36. Which section of the Company Act describes the duties of auditor – Section 227(1a) Section 228 Section 226(4) Section 226(3) 17 / 51 35. An auditor has a right to obtain information and explanations from the – Shareholders Auditors of the company Officers of the company Employees 18 / 51 34. An auditor has a right to – Access the books, accounts and vouchers of the company Receive notices and information regarding the general meeting Access the branch books All above 19 / 51 33. Company auditor is – A statutory consultant An agent An employee A professional specialist 20 / 51 32. If an auditor is not appointed or reappointed in the annual general meeting then vacancy is filled by – Board of directors of the company Central Government Managing Director President of the company 21 / 51 31. In partnership business, the appointment of auditor’s made – On the basis of agreement On the basis of statutory provisions Under Partnership Act None of these 22 / 51 30. Vacancy arises due to resignation of an auditor can be filled by – Board of Directors Shareholders in General Meeting Central Government Managing Director 23 / 51 29. By whom Internal Auditor can be removed from his post? Management Statutory Auditor Shareholders Debentureholders 24 / 51 28. Which of the following may be appointed as a statutory auditor – A partner of company’s employee An employee of a company’s director A partner of the director of that company Non-related person with that company 25 / 51 27. Central Government may appoint special auditor when – Sound business principles are not followed by a company Possibility of danger to the business by the management of the company Solvency position of company is suspectable All above 26 / 51 26. First auditor hold his office for – One year Any period until the appointment of new auditor is Until the conclusion of the first annual general meeting None of above 27 / 51 25. If auditor is not appointed by the Company in its general meeting then – Audit will not take place in that year Retiring auditor automatically will continue his work Director will appoint the director Central Government will appoint the director 28 / 51 24. A chartered accountant is not disqualified as an auditor of a company if he is a – Employee of that company Managing director of that company Have 6% shareholding of that company Indebted to the company for an amount of Rs. 1,000 29 / 51 23. Which of the following is a disqualification for auditor? An officer of the company Relative of the director of the company Receiving remuneration for his services Have a lien on books of accounts 30 / 51 22. In which form an auditor gets his remuneration – Salary Fees Fixed percentage of profit None of these 31 / 51 21. The remuneration of an auditor is fixed by – Central Government Board of Directors General Meeting Appointing authority 32 / 51 20. Under which section of the Companies Act the remuneration of the auditor has been discussed – 224 224 225 226 33 / 51 19. To remove an auditor before the expiry of his term, the necessary thing is – Prior permission of State Government Prior permission of Central Government Passing resolution in the General Meeting Both (b) and (c) above 34 / 51 18. In how many companies an auditor can work having 25 lac or more as share capital, 20 10 15 30 35 / 51 17. In how many companies an auditor can work having less than 25 lac as share capital – 20 10 15 30 36 / 51 16. Before commencing the audit work, a company auditor should – Examine the appointment Examine the statutory records Study the previous All the above 37 / 51 15. Auditors in Government companies are appointed by – Government Comptroller and Auditor General of India President Prime Minister 38 / 51 14. Generally who is appointed as an auditor in the annual general meeting of a company – Retiring auditor New auditor A body corporate Officer of a company 39 / 51 13. Tenure of appointment of an auditor is – Five years For indefinite period From the conclusion of one annual general meeting to the factual conclusion of the next annual general meeting None of these 40 / 51 12. Before commencing audit work of a company, the auditor should see – Legality of appointment Nature of business Statutory document All above 41 / 51 11. Which of the following is not eligible to become an auditor of a company – A body corporate An officer or employee of the company A person who is indebted to the company for an amount exceeding Rs. 1,000 All above 42 / 51 10. Which section of the Companies Act state the qualifications and disqualifications of company – Section 226 Section 225 Section 224 None of these 43 / 51 9. The auditor shall inform the Registrar of the company in writing about his acceptance of appointment within – 7 days 14 days 20 days 30 days 44 / 51 8. The company shall intimate to the auditor appointed stating that he has been appointed as auditor of the company within – 30 days 20 days 14 days 7 days 45 / 51 7. An auditor of a company is appointed for a period of – One year Two years Three year Five years 46 / 51 6. Under which section of the Act, the branch auditor is appointed – Section 224 Section 225 Section 228 Section 231 47 / 51 5. In annual general meeting, the auditor is appointed by – Board of directors Creditors Shareholders Central Government 48 / 51 4. Government may order for special audit under – Section 227 Section 233A Section 233B Section 224 49 / 51 3. By whom the special audit of a company is get done – Directors of the company Shareholders Central Government Creditors 50 / 51 2. First auditor of a company is appointed by – Government Board of Directors Shareholders Company Secretary 51 / 51 1. Under which section a company auditor is appointed – 224 228 233 251 Your score is LinkedIn Facebook Twitter VKontakte 0% Restart quiz Please Give Your Review Send feedback Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15