Audit & Auditors
MCQ Assessment
Question 1
Birthday Card Limited, a listed company can appoint or re-appoint, Mishra & Associates (a firm of
Chartered Accountants), as their statutory auditors for:
a) One year only
b) One term of 3 consecutive years only
c) One term of 4 consecutive years only
d) Two terms of 5 consecutive years
Question 2
Which of the following is a prohibited service to be rendered by the auditor of the Company?
a) Design and implementation of any financial information system
b) Making report to the members of the company on the accounts examined by him
c) Compliance with the auditing standards
d) Reporting of fraud against the company by officers or employees to the Central Government
Question 3
The auditor of a Government Company shall be appointed or re-appointed by
a) The Central Government
b) Comptroller and Auditor General of India (CAG),
c) Central Government on the advice of Comptroller and Auditor General of India
d) Chairman of the Board of Directors
Question 4
Every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor
who shall hold office from the conclusion of that meeting till the conclusion of its
a) Second annual general meeting
b) Fourth annual general meeting
c) Sixth annual general meeting
d) Eighth annual general meeting
Answers
1 d
2 a
3 b
4 c
