Free Auditing and Assurance Training MCQ Questions and Answers

Question 1

Which of the following people meets the requirements to work as a corporate auditor?

Accepted Answer

A practicing-chartered accountant

Answer

An employee of the company

Answer

A person who is indebted to the company for an amount exceeding Rs. 1000

Answer

A body corporate

Question 2

The audit is categorized as ____ when the auditor works for the company being audited.

Accepted Answer

Internal

Answer

Both Internal and Compliance

Answer

Compliance

Answer

External

Question 3

Before the end of his tenure, a business auditor may be dismissed by

Accepted Answer

Shareholders

Answer

State Government

Answer

Central Government

Answer

Board of Directors

Question 4

The auditor should determine if there is a capital loss.

Accepted Answer

Allow payment of dividends after making such losses good

Answer

None of the above

Answer

Not allow payment of dividend

Question 5

The auditor should ensure that the amount received for the premium on the issuance of shares is indicated in .

Accepted Answer

Share Premium account

Answer

Subscribed capital

Answer

Paid- up capital account

Answer

Capital Reserve Account

Question 6

The Companies Act of 2009, Section 143, addresses ___.

Accepted Answer

Powers and rights of an auditor

Answer

Removal of an auditor

Answer

Remuneration of an auditor

Answer

Appointment of an auditor

Question 7

The Share Premium Account line item on the Balance Sheet should read

Accepted Answer

Reserves & surplus

Answer

Reserved capital

Answer

Paid-up capital

Answer

Subscribed capital