Auditing MCQs

Page No. 3

The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue___________?


aunqualified opinion

✖


bunqualified opinion with reference to notes to the accounts

✓


cqualified opinion

✖


d disclaimer of opinion

✖



When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinion?


aQualified opinion

✓


bDisclaimer of opinion

✖


cAdverse opinion

✖


dUnqualified report with ‘an emphasis of matter’ paragraph;

✖


View Answer Qualified opinion

The date on auditor’s report should not be____________?


athe data of AGM

✖


blater than the date on which the accounts are approved in board’s meeting

✖


c earlier than the date on which the accounts are approved by the management

✓


dBoth A. and B.

✖



Auditor of a___________company does not have right to visit foreign branches of the company?


aUnlimited liability

✖


bManufacturing

✓


cBanking

✖


dNon­profit making

✖


View Answer Manufacturing

The branch auditor is appointed by___________?


aShareholders in an annual general meeting

✖


bShareholders in general meeting

✓


cBoard of directors in board meeting

✖


dAny of the above

✖



The auditor has a right to­___________?


aObtain information and explanation

✖


bObtain information and explanation from the employees and officers

✖


cObtain information and explanation necessary for the purpose of audit

✖


dBoth B. and C.

✓


View Answer Both B. and C.

A statutory auditor has a right of access at all times to___________?


aBooks and accounts of a company

✖


bBooks, accounts and documents of the company

✖


cBooks, accounts and vouchers of the company

✓


dNotices and documents of the company

✖



Who out of the following cannot be appointed as a statutory auditor of the company?


aErstwhile director

✖


bInternal auditor

✓


cRelative of a director

✖


dOnly (B. and (C

✖


View Answer Internal auditor

The authority to remove the first auditor before the expiry of term is with__________?


athe shareholders in a general meeting

✓


bthe shareholders in the first annual General meeting

✖


c the board of directors

✖


dthe Central Government

✖



If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a_________?


aBoard meeting

✖


bextraordinary general meeting

✖


cGeneral meeting

✓


dannual general meeting

✖


View Answer General meeting

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