The four pillars /principles of corporate governance

Accountability, agency, transparency and regulatory

Accountability, fairness, transparency and independence

Accountability, agency, transparency and regulatory

Regulatory, fairness, independence and transparency

Accountability, cooperation, fairness and independence

The pillars of corporate governance are

Fairness, transparency and responsibility

Responsibility, transparency only

The key players of Anglo-Saxon model of Corporate Governance

Management, directors and shareholders

Partner, keiretsu, management and Government

Benefits of Corporate governance:

Ensures corporate success and economic growth

Gives positive impact on the share price

The functions of the CSR Committee

Formulate and recommend to the Board

Recommend the amount of the expenditure to be incurred on the activities referred to in clause(a)

Monitor the CSR Policy of the company from time to time

Corporate Social Responsibility includes

Building essential social infrastructure

Which of the following is not related to attributes of corporate philanthropy?

Funding for corporate philanthropy mainly comes from the company s contributions

It focuses on treating the cause of a problem

It is done through a corporation s own non-profit entity

Human resources to take care of the employees

Funding for corporate philanthropy mainly comes from the company s contributions

Corporate social responsibility provides a wide range of benefits for companies in terms of

Increased brand value and reputation

Increased attraction and retention of employees

Stakeholders in the Stakeholder Theory are divided into primary and secondary stakeholders. Primary stakeholders are

Environmentalists, governments, media

Employees, suppliers, customers

The acronym CSR stands for

Corporate Sensitive Reliability

Corporate Social Responsibility

Corporate Sensitive Reliability

Today stakeholders are increasingly demanding that businesses take up environmental stewardship as a part of CSR to reduce carbon footprint of the business through

Better waste management including emissions from plants

The governance flaws of collapsed companies may be happened due to

Failure of the Board of Directors

The Triple Bottom line (TBL) which are interlinked are found in

Corporate social Responsibility

The CSR committee shall

Formulate and recommend to the Board of Corporate Social Responsibility which shall indicate the activities to be undertaken by the company

Monitor the Crporate Social Responsibility of the company

is issued when the auditor is completely satisfied that there is nothing objectionable

Standard Unqualified Report or Clean Report

The primary objective of auditing is to

To examine the reliability and validity of financial statements.

An auditor is liable held criminally liable for

Offences against statutory provision

This committee laid down guidelines to ensure independence of auditors and recommended rotation of auditors.

Narayan Murthy Committee set up by SEBI in 2003

SEBI s Birla Committee chaired by Kumara Manglam Birla in1999

Naresh Chandra Committee set up by Department of Company Affairs in 2002

The regulatory framework of corporate governance in India is three tiered comprising of the

MCA, SEBI and Stock Exchanges.(SE)

SEBI, FEMA and Stock Exchanges(SE)

SCRA, MCA and Chartered Accountant Act.

The focus of the reforms in corporate governance in India is on

Developing an efficient capital market

Promoting shareholders democracy

Audit of partnership firm is under

Audit of other organizations covered by any law

Audit of other organizations not covered by any law

The matters on which an auditor has a duty to report under Section 143 (3)can broadly divided into two categories, namely

Accounts examined and every financial statement during his tenure

Under technique of Auditing,Documents which have their origin in the hands of the third party and held by them is

Reliable only if the internal control is effective.

175 + Mcqs in Auditing Corporate Governance in Bachelor of Commerce (B Com) Page 2 McqOptions

51.	Audits should be based on the six principles,according to
A.	ISO 19001:2011
B.	ISO 19011:2011
C.	ISO 19111:2011
D.	ISO 19000:2011
Answer» B. ISO 19011:2011

Discussion

52.	The four pillars /principles of corporate governance
A.	Accountability, fairness, transparency and independence
B.	Accountability, agency, transparency and regulatory
C.	Regulatory, fairness, independence and transparency
D.	Accountability, cooperation, fairness and independence
Answer» B. Accountability, agency, transparency and regulatory

Discussion

53.	Corporate governance code in the United Kingdom was set up in 1992 by the
A.	Thornton Committee
B.	Rowntree Committee
C.	Cadbury Committee
D.	Nestl Committee
Answer» D. Nestl Committee

Discussion

54.	The pillars of corporate governance are
A.	Accountability,fairness
B.	Fairness, transparency and responsibility
C.	Responsibility, transparency only
D.	(a) and (b)
Answer» E.

Discussion

55.	The theory based on the concept of separation of ownership and control.
A.	Agency Theory
B.	Stewardship Theory
C.	Stakeholder Theory
D.	None of the above
Answer» B. Stewardship Theory

Discussion

56.	The framework for establishing good corporate governance and accountability was originally set up by the
A.	Nestl Committee
B.	Cadbury Committee
C.	Rowntree Committee
D.	Thornton Committee
Answer» C. Rowntree Committee

Discussion

57.	The key players of Anglo-Saxon model of Corporate Governance
A.	Management, directors and shareholders
B.	Banks and shareholders
C.	Partner, keiretsu, management and Government
D.	Government
Answer» B. Banks and shareholders

Discussion

58.	Benefits of Corporate governance:
A.	Lowers the capital cost
B.	Ensures corporate success and economic growth
C.	Gives positive impact on the share price
D.	All of the above
Answer» E.

Discussion

59.	Which of the following is not pillars of corporate Governance
A.	Accountability
B.	Reliability
C.	Fairness
D.	Transparency
Answer» C. Fairness

Discussion

60.	The functions of the CSR Committee
A.	Formulate and recommend to the Board
B.	Recommend the amount of the expenditure to be incurred on the activities referred to in clause(a)
C.	Monitor the CSR Policy of the company from time to time
D.	All of the above
Answer» E.

Discussion

61.	Corporate Social Responsibility includes
A.	Corporate Sustainability
B.	Giving back to host community
C.	Building essential social infrastructure
D.	All of the above
Answer» E.

Discussion

62.	Which of the following is not related to attributes of corporate philanthropy?
A.	It focuses on treating the cause of a problem
B.	It is done through a corporation s own non-profit entity
C.	Human resources to take care of the employees
D.	Funding for corporate philanthropy mainly comes from the company s contributions
Answer» D. Funding for corporate philanthropy mainly comes from the company s contributions

Discussion

63.	The concept of a triple bottom line encompasses
A.	Economic concern
B.	Social Concern
C.	Environmental concern
D.	All of the above
Answer» E.

Discussion

64.	Corporate Social Responsibility has been regulated by of the Companies Act, 2013
A.	Section 135
B.	Section 154
C.	Section 134
D.	Section 153
Answer» B. Section 154

Discussion

65.	Corporate social responsibility provides a wide range of benefits for companies in terms of
A.	Increased brand value and reputation
B.	Increased attraction and retention of employees
C.	Easier availability of finance
D.	All of the above
Answer» E.

Discussion

66.	Stakeholders in the Stakeholder Theory are divided into primary and secondary stakeholders. Primary stakeholders are
A.	Environmentalists, governments, media
B.	Employees, suppliers, customers
C.	Both (a) & (b)
D.	Only (b)
Answer» E.

Discussion

67.	Corporation are regarded as in the eyes of the law
A.	Artificial person
B.	Natural person
C.	Fictitious person
D.	None of the above
Answer» B. Natural person

Discussion

68.	The acronym CSR stands for
A.	Corporate Search and Rescue
B.	Corporate Social Responsibility
C.	Corporate Sensitive Reliability
D.	Corporate Social Reality
Answer» C. Corporate Sensitive Reliability

Discussion

69.	Which of the following is not a model of CSR?
A.	Shareholder Value Theory
B.	Creating Shared Value model
C.	Indian model
D.	Carroll s model
Answer» D. Carroll s model

Discussion

70.	The primary stakeholders are
A.	Customers.
B.	Suppliers.
C.	Shareholders.
D.	Creditors
Answer» D. Creditors

Discussion

71.	Today stakeholders are increasingly demanding that businesses take up environmental stewardship as a part of CSR to reduce carbon footprint of the business through
A.	Sustainable packaging
B.	Good water management
C.	Better waste management including emissions from plants
D.	All of the above
Answer» E.

Discussion

72.	The act of a corporate to five gifts/ charitable contributions to communities, universities, etc. that do not necessarily provide any economic benefit but helps in generating goodwill among employees, customers and the local community.
A.	Corporate responsibility
B.	Corporate philanthropy
C.	Business ethics
D.	Corporate sustainability
Answer» C. Business ethics

Discussion

73.	Section 135 of the Companies Act, 2013 has laid down that all companies incorporated in India having a net worth of INR 500 crore or more, must spend a percentage of the average net profits made during every block of three years. What is the percentage?
A.	5%
B.	3.5%
C.	2%
D.	3%
Answer» D. 3%

Discussion

74.	The CSR projects/activities outlined in the Schedule VII of the Companies Act, 2013 arei. Promoting educationii. Eradicating hunger, poverty & malnutritioniii. Protection of national heritage, art and cultureiv. Ensuring environmental sustainability
A.	Only ii and iii
B.	All of the above
C.	None of the above
D.	i, ii and iv
Answer» C. None of the above

Discussion

75.	The three elements of triple bottom line (TBL) coined by Elkington arei. Economic sustainabilityii. Social sustainabilityiii. Corporate sustainabilityiv. Environment sustainability
A.	i, ii, iii
B.	i, iii, iv
C.	i, ii, iv
D.	ii, iii, iv
Answer» D. ii, iii, iv

Discussion

76.	which of the following statements are truei. CSR has its roots in business ethicsii. CSR and business ethics are conceptually differentiii. CSR and business ethics are synonymousiv. CSR and business ethics can be used interchangeably
A.	i and ii
B.	ii and iii
C.	i and iv
D.	iii and iv
Answer» B. ii and iii

Discussion

77.	The members of the corporate social responsibility committee will be appointed by
A.	Board of directors
B.	Shareholders
C.	Managing director
D.	Chief Executive Officer
Answer» B. Shareholders

Discussion

78.	The governance flaws of collapsed companies may be happened due to
A.	Failure of the Board of Directors
B.	Flaws in External Audit
C.	Dominating Dishonest CEO
D.	All of the above.
Answer» E.

Discussion

79.	A commitment to improve community well being through discretionary business practices and contributions of corporate resources is called Corporate Social Responsibility. This definition is given by
A.	McGuire
B.	Mallen Baker
C.	Phillip Kohler and Nancy Lee
D.	Harvard school.
Answer» B. Mallen Baker

Discussion

80.	The Triple Bottom line (TBL) which are interlinked are found in
A.	Corporate philanthropy
B.	Corporate social Responsibility
C.	Corporate governance
D.	Corporate sustainability.
Answer» E.

Discussion

81.	Some common forms of corporate philantrophy are
A.	Cash donations
B.	In-kind donations
C.	Both (a) and (b)
D.	None of the above.
Answer» D. None of the above.

Discussion

82.	The CSR committee shall
A.	Formulate and recommend to the Board of Corporate Social Responsibility which shall indicate the activities to be undertaken by the company
B.	Monitor the Crporate Social Responsibility of the company
C.	Both (a) and (b)
D.	None of the above.
Answer» D. None of the above.

Discussion

83.	Common governance problems of corporate failures in Developed countries arei. Unethical business practicesii. Audit failuresiii. Ambitious acquisitions and takeoversiv. Remuneration structure
A.	i, ii, iv
B.	ii, iii, iv
C.	i, ii, iii
D.	i, ii, iii, iv
Answer» D. i, ii, iii, iv

Discussion

84.	is issued when the auditor is completely satisfied that there is nothing objectionable
A.	Standard Unqualified Report or Clean Report
B.	Qualified opinion
C.	Disclaimer of opinion
D.	Adverse opinion
Answer» B. Qualified opinion

Discussion

85.	Corporate governance is the interaction between various participants in shaping company s performance. The participants included are
A.	Shareholders
B.	Board of directors
C.	Company s management
D.	All of the above.
Answer» E.

Discussion

86.	The work of one clerk automatically checked by another clerk is called
A.	Internal control
B.	Internal check
C.	Internal audit
D.	None of the above
Answer» C. Internal audit

Discussion

87.	There is no conflict of interest between the shareholders and BoD and Managers
A.	Agency Theory
B.	Stewardship Theory
C.	Stakeholder Theory
D.	None of the above
Answer» C. Stakeholder Theory

Discussion

88.	The primary objective of auditing is to
A.	To examine the reliability and validity of financial statements.
B.	To detect errors
C.	To detect frauds
D.	None of the above.
Answer» B. To detect errors

Discussion

89.	An auditor is liable held criminally liable for
A.	Loss to his client
B.	Neglect of his duty
C.	Offences against statutory provision
D.	None of the above
Answer» D. None of the above

Discussion

90.	This committee laid down guidelines to ensure independence of auditors and recommended rotation of auditors.
A.	Narayan Murthy Committee set up by SEBI in 2003
B.	SEBI s Birla Committee chaired by Kumara Manglam Birla in1999
C.	Naresh Chandra Committee set up by Department of Company Affairs in 2002
D.	Only (a)
Answer» D. Only (a)

Discussion

91.	An arrangement of accounting routine that errors and frauds are automatically prevented or discovered by the very operation of bookkeeping itself is called
A.	Internal control
B.	Internal check
C.	Interim audit
D.	Partial audit.
Answer» C. Interim audit

Discussion

92.	The regulatory framework of corporate governance in India is three tiered comprising of the
A.	MCA, SEBI and Stock Exchanges.(SE)
B.	MCA, SEBI and FERA
C.	SEBI, FEMA and Stock Exchanges(SE)
D.	SCRA, MCA and Chartered Accountant Act.
Answer» B. MCA, SEBI and FERA

Discussion

93.	In case the Board of Directors fails to appoint first auditors, the shareholders shall appoint them at _______ by passing a resolution.
A.	Extraordinary general meeting.
B.	First annual general meeting.
C.	Statutory meeting.
D.	Annual general meeting
Answer» B. First annual general meeting.

Discussion

94.	The focus of the reforms in corporate governance in India is on
A.	Developing an efficient capital market
B.	Promoting shareholders democracy
C.	(a) and (b)
D.	None of the above.
Answer» D. None of the above.

Discussion

95.	________is transaction in securities of the company by an insider on the basis of unpublished price sensitive information
A.	Insider trading
B.	Outsider trading
C.	Investor trading
D.	None of the above
Answer» B. Outsider trading

Discussion

96.	Audit of partnership firm is under
A.	Audit of other organizations covered by any law
B.	Audit required under law
C.	Audit of other organizations not covered by any law
D.	None of the above.
Answer» D. None of the above.

Discussion

97.	The matters on which an auditor has a duty to report under Section 143 (3)can broadly divided into two categories, namely
A.	Statement of fact and opinion
B.	Accounts examined and every financial statement during his tenure
C.	Both (a) & (b)
D.	Only (b)
Answer» B. Accounts examined and every financial statement during his tenure

Discussion

98.	Under technique of Auditing,Documents which have their origin in the hands of the third party and held by them is
A.	Reliable
B.	More reliable
C.	Reliable only if the internal control is effective.
D.	Most reliable evidence.
Answer» E.

Discussion

99.	The sections of the Act under which an auditor ac be held criminally liable are
A.	Section 34
B.	Section 147
C.	Section 448
D.	All of the above
Answer» E.

Discussion

100.	Directors service contracts should not exceed three years without shareholder s approval
A.	Cadbury Report
B.	Greenbury Report
C.	Hampel Report
D.	Smith Report
Answer» B. Greenbury Report

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

Audits should be based on the six principles,according to

The four pillars /principles of corporate governance

Corporate governance code in the United Kingdom was set up in 1992 by the

The pillars of corporate governance are

The theory based on the concept of separation of ownership and control.

The framework for establishing good corporate governance and accountability was originally set up by the

The key players of Anglo-Saxon model of Corporate Governance

Benefits of Corporate governance:

Which of the following is not pillars of corporate Governance

The functions of the CSR Committee

Corporate Social Responsibility includes

Which of the following is not related to attributes of corporate philanthropy?

The concept of a triple bottom line encompasses

Corporate Social Responsibility has been regulated by of the Companies Act, 2013

Corporate social responsibility provides a wide range of benefits for companies in terms of

Stakeholders in the Stakeholder Theory are divided into primary and secondary stakeholders. Primary stakeholders are

Corporation are regarded as in the eyes of the law

The acronym CSR stands for

Which of the following is not a model of CSR?

The primary stakeholders are

Today stakeholders are increasingly demanding that businesses take up environmental stewardship as a part of CSR to reduce carbon footprint of the business through

The act of a corporate to five gifts/ charitable contributions to communities, universities, etc. that do not necessarily provide any economic benefit but helps in generating goodwill among employees, customers and the local community.

Section 135 of the Companies Act, 2013 has laid down that all companies incorporated in India having a net worth of INR 500 crore or more, must spend a percentage of the average net profits made during every block of three years. What is the percentage?

The CSR projects/activities outlined in the Schedule VII of the Companies Act, 2013 arei. Promoting educationii. Eradicating hunger, poverty & malnutritioniii. Protection of national heritage, art and cultureiv. Ensuring environmental sustainability

The three elements of triple bottom line (TBL) coined by Elkington arei. Economic sustainabilityii. Social sustainabilityiii. Corporate sustainabilityiv. Environment sustainability

which of the following statements are truei. CSR has its roots in business ethicsii. CSR and business ethics are conceptually differentiii. CSR and business ethics are synonymousiv. CSR and business ethics can be used interchangeably

The members of the corporate social responsibility committee will be appointed by

The governance flaws of collapsed companies may be happened due to

A commitment to improve community well being through discretionary business practices and contributions of corporate resources is called Corporate Social Responsibility. This definition is given by

The Triple Bottom line (TBL) which are interlinked are found in

Some common forms of corporate philantrophy are

The CSR committee shall

Common governance problems of corporate failures in Developed countries arei. Unethical business practicesii. Audit failuresiii. Ambitious acquisitions and takeoversiv. Remuneration structure

is issued when the auditor is completely satisfied that there is nothing objectionable

Corporate governance is the interaction between various participants in shaping company s performance. The participants included are

The work of one clerk automatically checked by another clerk is called

There is no conflict of interest between the shareholders and BoD and Managers

The primary objective of auditing is to

An auditor is liable held criminally liable for

This committee laid down guidelines to ensure independence of auditors and recommended rotation of auditors.

An arrangement of accounting routine that errors and frauds are automatically prevented or discovered by the very operation of bookkeeping itself is called

The regulatory framework of corporate governance in India is three tiered comprising of the

In case the Board of Directors fails to appoint first auditors, the shareholders shall appoint them at _______ by passing a resolution.

The focus of the reforms in corporate governance in India is on

________is transaction in securities of the company by an insider on the basis of unpublished price sensitive information

Audit of partnership firm is under

The matters on which an auditor has a duty to report under Section 143 (3)can broadly divided into two categories, namely

Under technique of Auditing,Documents which have their origin in the hands of the third party and held by them is

The sections of the Act under which an auditor ac be held criminally liable are

Directors service contracts should not exceed three years without shareholder s approval