A. Schedule XIV
B. Schedule V
C. Schedule XIII
D. Schedule X
✅ The correct answer is option A.
Auditing MCQs
Depreciation does not arise form _______
A. Effluxion of time
B. Use
C. Obsolescence through technology be market changes
D. Remarket expectation
✅ The correct answer is option D.
Which of the following is not a revenue expense?
A. Cost of raising a loan
B. Cost of accessories of motor vehicles spent at the time of purchase
C. Expenses incurred for laying of sewers on land purchased
D. Insurance premium paid at the time of registration of the ship
✅ The correct answer is option B.
Which of the following expenses should not be treated as capital expenditure?
A. Expenses paid on installation of a plant.
B. Cost of dismantling a building in case a new building is to be constructed on the land
C. Legal expenses incurred to defend a suit related to title of patent. The suit has been lost
D. The fees paid to engineer who constructed the plant.
✅ The correct answer is option C.
The auditor has to enquire, under section 227 (IA) into different aspects, related to shares allotted for cash for the purpose of auditor include
A. Shares against whose allotment cash has actually been received
B. Shares allotted for consideration other than cash
C. Shares allotted against a debt payable
D. All of them
✅ The correct answer is option D.
Which of the following statement is not true regarding appointment of statutory auditor by the Central Government?
A. Such powers have been conferred upon it by section 224(3)
B. If a company fails to appoint an auditor at a general meeting
C. If an auditor refuses to accept appointment, the powers of the Central
D. None of the above
✅ The correct answer is option B.
Under which of the following section auditor has a duty to enquire into six specified matters and report by exception?
A. Section 227(4A)
B. Section 227 (IA)
C. Section 227 (2)
D. Section 227(3)
✅ The correct answer is option A.
In case the directions fail to appoint first auditor (s), the shareholders shall appoint them at…..by passing a resolution
A. a general meeting
B. first annual general meeting
C. statutory meeting
D. annual general meeting
✅ The correct answer is option A.
The principal auditor, as per clarification issued by the ICAI, does not have any right to
A. Inspect working papers of the branch auditor
B. Visit branches
C. Seek information necessary for audit purposes
D. Incorporate the branch audit report in his audit report
✅ The correct answer is option A.
The term of the auditor ship of first auditor would be from the date of appointment till__
A. the conclusion of statutory meeting
B. the conclusion of first annual general meeting
C. the conclusion of next annual general meeting
D. the date of removal
✅ The correct answer is option B.