Auditing

21. Shares issued for consideration other than cash should be vouched with help of –

A. Directors minutes book

B. Shareholders minute’s book

C. Contract with the party concerned

D. Cash book

✅ The correct answer is option C.

22. The audit program is prepared by –

A. The auditor

B. The client

C. The audit assistants

D. Auditor & his assistants

✅ The correct answer is option D.

23. Auditor in general is –

A. Employee of the company

B. Agent of the company

C. Agent of the shareholders

D. None of the above

✅ The correct answer is option C.

24. Internal auditor has to submit report to –

A. Shareholders

B. Government

C. Company law board

D. none of above

✅ The correct answer is option D.

25. A remuneration of a company auditor is fixed by the –

A. Shareholders

B. Board of directors

C. Central Government

D. Appointing authority

✅ The correct answer is option D.

26. A special auditor is appointed by the –

A. Shareholders

B. Board of directors

C. Central government

D. CAG

✅ The correct answer is option C.

27. The vacancy caused by resignation at a auditor is filled by –

A. Board of directors

B. At the general meeting of shareholders

C. By the central government

D. By the company law board

✅ The correct answer is option B.

28. First auditor of the company is appointed by the –

A. Shareholders

B. Central government

C. Company law board

D. Board of directors

✅ The correct answer is option D.

29. Outstanding expenses should be verified with the help of –

A. Cashbook

B. Balance book

C. Journal proper

D. None of above.

✅ The correct answer is option C.

30. Floating assets are valued at –

A. Cost

B. Market price

C. Cost price or market price whichever is less

D. Cost less than depreciation

✅ The correct answer is option C.