Admin

161. If any director is disqualified from being appointed under section 274(1) (g), the auditor should mention this fact in his audit report. For this purpose, how does he determine their eligibility :

A. He obtains a representation from each director

B. He obtains a management representation

C. He enquiries from Registrar of Companies

D. Any one of the above

✅ The correct answer is option A.

162. The scope of the audit including reference to the pronouncements of the ICAI, which the auditor adheres to, generally is communicated to the client in the ____ i) auditor’s report ii) engagement letter iii) representation letter

A. i) only

B. Both (i) and (ii)

C. Both (i) and (iii)

D. All the above

✅ The correct answer is option B.

164. Who among the following can be appointed as special auditor by the Central Government?

A. The statutory auditor

B. chartered accountant in practice

C. Any chartered accounted who is not in practice

D. Both (a) and (b)

✅ The correct answer is option D.

166. Special audit is conducted at the order of the Central Government. Which section gives such powers?

A. Section 233(A)

B. Section 233A

C. Section 242(A)

D. Section 242A

✅ The correct answer is option C.

168. The branch auditor is appointed by –

A. Shareholders in an annual general meeting

B. Shareholders in general meeting

C. Board of directors in board meeting

D. Any of the above

✅ The correct answer is option B.

170. Which of the following statements with regard to rules regarding exemption from branch audit is not true?

A. A branch office of a company can be granted exemption on the basis of quantum of activity criterion

B. If a satisfactory arrangement of scrutiny check of the books of account of a branch office of a manufacturing company has been made, it can be exempted from branch audit

C. Cost consideration should be considered as an important factor/ground for exemption from branch audit

D. The auditor should state in his audit report that branch office is exempted by virtue of quantum of activity or any other basis

✅ The correct answer is option B.

151. In case of sales return, the auditor should examine which documents?

A. Credit notes, advice notes and inward return notes

B. Debit notes, advice notes and inward return notes

C. Purchase invoices, advice notes and inward return notes

D. Credit notes, inspection report and inward return notes

✅ The correct answer is option D.

134. While vouching wages, auditor should examine whether there is proper segregation of duties. Which of the following activities should not be done by same department?

A. Maintaining personnel records and approving changing in wages rates

B. Proposing pay roll summary and disbursement of wages

C. Making salary statements and filing tax returns

D. Comparing time clock records with time reports prepared by supervisors and preparing list of workers employed along with the units of production for each one of them

✅ The correct answer is option B.

135. In case of unclaimed wages, the auditor should examine whether

A. The amount has been deposited in a separate bank account

B. Deposited with the cashier

C. Held in a safe deposit box

D. All of these

✅ The correct answer is option A.

136. Which of the following would prevent double payment of the same voucher?

A. The person signing the cheque should cancel the supporting documents

B. Cheques should be signed by at best two persons

C. The data of payment of vouchers of similar nature should be the same or close to each other

D. All of the above

✅ The correct answer is option A.

Author name: Admin