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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