MCQOPTIONS
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MCQOPTIONS
This section includes 175 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B Com) knowledge and support exam preparation. Choose a topic below to get started.
| 101. |
A systematic and independent examination of data ,statements,records,operations,and performance(financial or otherwise) for a stated purpose. In any auditing situation,the auditor perceives and recognizes the propositions before him for examination,collects evidence,evaluates the same and on the basis formulates his judgement which is,communicated through his audit report. This definition is given by |
| A. | Joseph Lancaster |
| B. | Taylor and Perry |
| C. | ICAI |
| D. | ICAE. |
| Answer» D. ICAE. | |
| 102. |
Removal of auditor that requires special resolution and previous approval of the Central Government |
| A. | Resignation of Auditor |
| B. | Retirement of Auditor |
| C. | Removal of Auditor before expiry of term |
| D. | Removal of Auditor after expiry of term |
| Answer» D. Removal of Auditor after expiry of term | |
| 103. |
Which of the following is not types of auditor |
| A. | First auditor |
| B. | Subsequent auditor |
| C. | Casual vacancy |
| D. | Last auditor |
| Answer» E. | |
| 104. |
Which of the following statement is not correct regarding removal of first auditor before expiry of the term? |
| A. | He is removed at a general meeting. |
| B. | The approval of the central government is required for such removal. |
| C. | The provision for removal are contained in sec 140(1) of Companies Act, 2013 |
| D. | The shareholders are authorized to do so |
| Answer» C. The provision for removal are contained in sec 140(1) of Companies Act, 2013 | |
| 105. |
The auditor who authorized the issue of misstatements in prospectus can be imprisoned for a term which may extend to |
| A. | 5 years |
| B. | 7 years |
| C. | 8 years |
| D. | 10 years |
| Answer» E. | |
| 106. |
___________of the Companies act 2013 lays down provisions regarding the eligibility of appointment of an auditor. |
| A. | Sec 141 |
| B. | Sec 142 |
| C. | Sec 143 |
| D. | Sec 144 |
| Answer» B. Sec 142 | |
| 107. |
The principal rights conferred upon the auditor by the Companies Act, 2013 |
| A. | Right to sign audit reports |
| B. | Right to get his representation circulated |
| C. | Right to speak as a member of the company |
| D. | Right to make a written representation |
| Answer» B. Right to get his representation circulated | |
| 108. |
Section --------------of the companies Act,2013 detailed the qualification of company Auditors. |
| A. | 141 |
| B. | 141(ab) |
| C. | 140 |
| D. | 140(ab) |
| Answer» B. 141(ab) | |
| 109. |
Section 135 of the Companies Act 2013 provides that the constitution of CSR committee is mandatory in company having a net worth of |
| A. | Rs 100 crore |
| B. | Rs 500 crore |
| C. | Rs 600 crore |
| D. | Rs 300 crore |
| Answer» C. Rs 600 crore | |
| 110. |
The first auditor of a government company shall be appointed within 60 days from the date of registration of the company by. |
| A. | The government company itself. |
| B. | The Comptroller and Auditor General of India |
| C. | The central government. |
| D. | The shareholders. |
| Answer» C. The central government. | |
| 111. |
A Tax Auditor of a firm/proprietary concern is appointed by |
| A. | A Partner |
| B. | The Proprietor |
| C. | A person authorized by the assessee |
| D. | All of the above |
| Answer» E. | |
| 112. |
First auditor of a company shall be appointed by the Board of Directors within |
| A. | 30 days |
| B. | 40 days |
| C. | 45 days |
| D. | 60 days |
| Answer» B. 40 days | |
| 113. |
The board of directors shall appoint first auditor of a company ___________. |
| A. | Within one month of completion of capital subscription state of the company |
| B. | Within one month of the promotion of the company. |
| C. | Within one month of the commencement of the business of the company. |
| D. | Within one month of incorporation of the company. |
| Answer» E. | |
| 114. |
Who among the following cannot be appointed as auditor of a company? |
| A. | A person who is a Chartered Accountant within the meaning of CA Act, 1949 and holds a certificate of practice. |
| B. | Officer or employee of the company |
| C. | A Chartered Accountant who is an auditor of more than 20 companies |
| D. | Both (b) & (c) |
| Answer» E. | |
| 115. |
Who among the following can be appointed as cost auditor of a company? |
| A. | Chartered Accountant |
| B. | Cost Accountant within the meaning of Cost and Works Accountants Act, 1959 |
| C. | An officer or employee of the company |
| D. | Auditor of the company |
| Answer» C. An officer or employee of the company | |
| 116. |
The external auditor are usually appointed by |
| A. | The owners only |
| B. | The government |
| C. | The management and the government |
| D. | The owners and in some cases by the government. |
| Answer» E. | |
| 117. |
The tenure of first auditor shall be from the date of appointment till |
| A. | The conclusion of first annual general meeting |
| B. | The beginning of first annual general meeting |
| C. | The conclusion of the second annual general meeting |
| D. | The conclusion of special meeting |
| Answer» B. The beginning of first annual general meeting | |
| 118. |
A Cost Auditor is appointed by the |
| A. | Board of Directors |
| B. | Shareholders |
| C. | Central Government |
| D. | C&A-G |
| Answer» B. Shareholders | |
| 119. |
Which of the following is not a role of the CSR committee? |
| A. | Formulate a CSR Policy indicating the activities as per Schedule VII to the Act |
| B. | Recommend the policy to Board of the Company |
| C. | Does not have outside relationships with other directors |
| D. | Recommend the amount of expenditure on the activities |
| Answer» D. Recommend the amount of expenditure on the activities | |
| 120. |
The management auditor may be appointed by |
| A. | Shareholders |
| B. | Board of directors |
| C. | Shareholders or board of directors |
| D. | None of the above |
| Answer» D. None of the above | |
| 121. |
Which of the following is the major corporate collapses arising out of scam in India |
| A. | Kingfisher Airlines |
| B. | Enron |
| C. | WorldCom |
| D. | Maxwell Communication |
| Answer» B. Enron | |
| 122. |
A comprehensive and critical review of all aspects of management process |
| A. | Cost Audit |
| B. | Tax Audit |
| C. | Management Audit |
| D. | Internal Audit |
| Answer» D. Internal Audit | |
| 123. |
Which of the following activities can be done by the company to achieve its CSR obligations? |
| A. | Eradicating extreme hunger and poverty |
| B. | Promotion of education |
| C. | Promoting gender equality and empowering women |
| D. | All of the above |
| Answer» E. | |
| 124. |
The business ethics is also known as |
| A. | Corporate philanthropy |
| B. | Corporate Social Responsibility |
| C. | Corporate Ethics |
| D. | None of the above |
| Answer» D. None of the above | |
| 125. |
The CSR committee must be composed of |
| A. | 3 or more Directors |
| B. | Only 1 director |
| C. | 2 Directors |
| D. | No Director |
| Answer» B. Only 1 director | |
| 126. |
Black box Approach is an approach which is also known as |
| A. | Auditing around the computer |
| B. | Auditing through the computer |
| C. | Auditing above the computer |
| D. | Auditing under the computer |
| Answer» B. Auditing through the computer | |
| 127. |
The major aspects of environmental sustainability are: |
| A. | Role of packaging |
| B. | Role of clean energy |
| C. | Role of environmental reporting |
| D. | All of the above |
| Answer» E. | |
| 128. |
Which of the following is ingredients of environmental CSR? |
| A. | Elimination of waste and emission |
| B. | Maximizing energy efficiency |
| C. | Minimizing practices that may adversely affect use of natural resources |
| D. | All of the above |
| Answer» E. | |
| 129. |
Business approach that creates long term value for the company by incorporating economic, environmental and social dimensions into its core business decisions |
| A. | Corporate philanthropy |
| B. | Corporate Sustainability |
| C. | Corporate Social Responsibility |
| D. | None of the above |
| Answer» C. Corporate Social Responsibility | |
| 130. |
Satyam computer services Ltd. was founded in 1987 by RamalingaRaju and his brother as aprivate company with just |
| A. | 10 employees |
| B. | 25 employees |
| C. | 20 employees |
| D. | 15 employees. |
| Answer» D. 15 employees. | |
| 131. |
The civil liability of an auditor can be for |
| A. | Negligence |
| B. | Misfeasance |
| C. | Negligence and misfeasance |
| D. | None of the above. |
| Answer» D. None of the above. | |
| 132. |
Interim Audit refers to an audit conducted |
| A. | In between two different accounting years |
| B. | In between two annual audits |
| C. | In between one statutory audit, one management audit and one internal audit |
| D. | None of the above |
| Answer» C. In between one statutory audit, one management audit and one internal audit | |
| 133. |
The process of collecting and evaluating evidence to determine whether a computer system safeguards assets, maintains data integrity, achieves organizational goals effectively, and consumes resources efficiently. |
| A. | Electronic data processing |
| B. | Electronic Domain Process |
| C. | Environment Development process |
| D. | None of the above |
| Answer» B. Electronic Domain Process | |
| 134. |
The liabilities of an auditor can be _________. |
| A. | Civil |
| B. | Criminal |
| C. | Civil and Criminal. |
| D. | Official |
| Answer» D. Official | |
| 135. |
An error occurs due to negligence in recording the details of transaction, such errors are of clerical nature and are of wrong entries,wrong positioning,additions,transfer,etc.. is called |
| A. | Errors of Commission |
| B. | Errors of Omission |
| C. | Errors of principle |
| D. | Compensating Errors. |
| Answer» B. Errors of Omission | |
| 136. |
The process of inspecting documents that supports a recorded transaction in order to verify the authority and authenticity of such a transaction is |
| A. | Vouching |
| B. | Verification |
| C. | Internal Check |
| D. | Internal Control |
| Answer» B. Verification | |
| 137. |
Before the work of audit is commenced, the auditor prepares a written procedure needed to implement the audit work |
| A. | Audit plan |
| B. | Audit note |
| C. | Audit programme |
| D. | Audit risk |
| Answer» D. Audit risk | |
| 138. |
Auditor should be dutiful like |
| A. | A watch dog |
| B. | a blood hound |
| C. | A detective |
| D. | An insurer |
| Answer» B. a blood hound | |
| 139. |
The process of substantiation of assets and liabilities recorded in the books of accounts by physical inspection and examination of legal and official documents to form and expert opinion |
| A. | Vouching |
| B. | Voucher |
| C. | Verification |
| D. | Audit notebook |
| Answer» D. Audit notebook | |
| 140. |
Errors occurring when generally accepted accounting principles are not observed while recording any transaction in the books of accounts |
| A. | Clerical errors |
| B. | Compensating errors |
| C. | Errors of principle |
| D. | Errors of duplication |
| Answer» D. Errors of duplication | |
| 141. |
The examination of documentary evidence in support of transactions contained in the books of accounts is referred to as |
| A. | Voucher |
| B. | Verification |
| C. | Internal verification |
| D. | Vouching |
| Answer» E. | |
| 142. |
A vacancy caused by resignation of the auditor is filled only |
| A. | By Board of Directors |
| B. | At the general meeting of shareholders |
| C. | By the Central Government |
| D. | By the Company Law Board |
| Answer» C. By the Central Government | |
| 143. |
The verification of the correctness of cost accounts and of adherence to the cost accounting plan is known as |
| A. | Cost Audit |
| B. | Tax Audit |
| C. | Management Audit |
| D. | Internal Audit |
| Answer» B. Tax Audit | |
| 144. |
The Cost auditor is concerned mainly with accounts related to |
| A. | Cost |
| B. | Finance |
| C. | Both cost & finance |
| D. | None of the above |
| Answer» B. Finance | |
| 145. |
A casual vacancy in the office of an auditor shall be filled by. |
| A. | Board of Directors. |
| B. | Managing Director. |
| C. | General meeting. |
| D. | Central Government. |
| Answer» B. Managing Director. | |
| 146. |
The Cost auditor has to serve the interest of |
| A. | Shareholders |
| B. | Management |
| C. | State Government |
| D. | None of the above |
| Answer» C. State Government | |
| 147. |
The first auditor of company will hold office |
| A. | For a period of one year |
| B. | Till holding of statutory meeting |
| C. | Till the conclusion of first annual general meeting |
| D. | Till a new audtor is appointed |
| Answer» D. Till a new audtor is appointed | |
| 148. |
Which of the following is not the types of audit report based on the kind of opinion |
| A. | Unmodified opinion report |
| B. | Audit report with an emphasis of matter paragraph |
| C. | Modified report |
| D. | None |
| Answer» E. | |
| 149. |
A company auditor in general has to submit his report to |
| A. | Shareholders |
| B. | Central Government |
| C. | C&A-G |
| D. | Board of Directors |
| Answer» B. Central Government | |
| 150. |
Which of the following is an element of the Audit Report |
| A. | Title& addressee |
| B. | Introductory, scope and opinion paragraph |
| C. | Date, place and auditors signature |
| D. | All of the above |
| Answer» E. | |