Description : Convening meetings of a company is the responsibility of the– (A) Chairman, Board of Directors (B) Managing Director (C) Company Secretary (D) General Manager
Last Answer : Answer: Company Secretary
Description : A meeting of the shareholders held only once during the life time of the company is known as– (A) Meeting of the Directors (B) Meeting of the Creditors (C) Extraordinary General Meeting (D) Statutory Meeting
Last Answer : Answer: Statutory Meeting
Description : The first directors of a company are appointed by– (A) Promoters (B) Government (C) Shareholders (D) Company Law Board
Last Answer : Answer: Promoters
Description : The first Secretary of the company is appointed by– (A) Shareholders (B) Promoters (C) Government (D) Directors
Description : The Meeting of Board of Directors must be called at least once– (A) In four months (B) In three months (C) In two months (D) In one month
Last Answer : Answer: In three months
Description : Appointment of a Company Secretary is made by– (A) Promoters (B) Board of Directors (C) Debenture holders (D) Government
Last Answer : Answer: Board of Directors
Description : Internal Auditor is appointed by the– (A) Management (B) Shareholders (C) Government (D) Statutory Auditor
Last Answer : Answer: Management
Description : An annual general meeting may be called after giving shorter notice instead of 21 clear days, if consent is accorded by– (A) All the directors of company (B) All the members entitled to vote there at (C) Majority of members entitled to vote there all (D) None of the above
Last Answer : Answer: All the members entitled to vote there at
Description : The first auditor of a company appointed, holds office– (A) For a period of one year (B) For that period till new auditor is appointed (C) Till the conclusion of first Annual General Meeting (D) Till the holding of statutory meeting of the company
Last Answer : Answer: Till the conclusion of first Annual General Meeting
Description : Where does an auditor of a cooperative society submit the audit report ? (A) To the managing committee of the society only (B) To the Registrar of Cooperative Societies of the State concerned only (C ... (D) To the Registrar of Cooperative Societies of the State concerned and a copy to the society
Last Answer : Answer: To the Registrar of Cooperative Societies of the State concerned only
Description : Which of the following best describes why publicly-traded corporations follow the practice of having the outside auditor appointed by the board of directors or elected by the stockholders? a. ... opportunity to voice their opinion concerning the quality of the auditing firm selected by the director
Last Answer : To emphasize auditor independence from the management of the corporation
Description : To emphasize auditor independence from management, many corporations follow the practice of a. Appointing a partner of the CPA firm conducting the examination to the corporation's audit committee. b ... the independent auditor report to an audit committee of outside members of the board of directors
Last Answer : Having the independent auditor report to an audit committee of outside members of the board of directors
Description : An audit committee must be comprised of outside directors. Which of the following is considered an outside director? a. A consultant to the company. b. A member of company management. c. The company's independent auditor. d. A retired executive from another company
Last Answer : A retired executive from another company
Description : The liability of the shareholders of a public limited company is limited to the extent of– (A) Par value of the share (B) Paid up value of the shares (C) Market price of the shares (D) Intrinsic value of the shares
Last Answer : Answer: Paid up value of the shares
Description : Which of the following is not a consideration in the development of audit programs? a. Internal control over the recording of plant asset additions and repairs and maintenance expenditures is ... client constructed a major addition to its central manufacturing facility during the year under audit
Last Answer : The members of the board of directors are elected by the stockholders during the annual meeting.
Description : In a public limited company, the minimum number of directors are– (A) 2 (B) 3 (C) 5 (D) None of the above
Last Answer : Answer: 3
Description : What is the minimum number of directors in a Public Company?
Last Answer : Atleast two directors
Description : The capital issues of public limited companies are subject to guidelines issued by– (A) Reserve Bank of India (B) Central Government (C) Central Bank of India (D) Securities & Exchange Board of India (SEBI)
Last Answer : Answer: Securities amp; Exchange Board of India (SEBI)
Description : Justify the following statement: The Board of Directors is the elected representative of the shareholders.
Last Answer : Justify the following statement: The Board of Directors is the elected representative of the shareholders.
Description : The audit committee of the board of directors of a company is responsible for a. Hiring the auditor b. The audit workpapers c. Preparing the financial statements d. Independence and obtaining evidence
Last Answer : Hiring the auditor
Description : Under Section 275 of the Companies’ Act, 1956 a person can become director in public company of not more than– (A) 5 companies (B) 10 companies (C) 15 companies (D) 20 companies
Last Answer : Answer: 15 companies
Description : Appointment of a person who is a Director, as a Secretary in the Company would require approval of the company by– (A) Special Resolution (B) Ordinary Resolution (C) Resolution by circulation (D) None of the above
Last Answer : Answer: Special Resolution
Description : The Secretary of a Company should file copies of Special Resolution passed at Extraordinary General Meeting to the Registrar of Companies within– (A) 7 days (B) 14 days (C) 21 days (D) 30 days
Last Answer : Answer: 30 days
Description : Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors
Last Answer : Answer: Equity Shareholders
Description : When the existing companies raise additional funds by issue of shares to the existing shareholders in proportion to their existing shareholdings, it is called– (A) Buyback of shares (B) Issue of shares at premium (C) Issue of shares at discount (D) Right shares issue
Last Answer : Answer: Right shares issue
Description : Ploughing-back of profits means– (A) Dividend declared but not claimed by shareholders (B) Non-declaration of dividend in any year (C) Profits earned from illegal sources and employed in business (D) Retaining the earnings of business for future expansion programme
Last Answer : Answer: Retaining the earnings of business for future expansion programme
Description : Members of a company may apply to which one among the following for relief under the Companies Act, 1956 in cases of oppression ? (A) Central Government (B) High Court of Judicature (C) National Company Law Tribunal (D) National Company Law Appellate Tribunal
Last Answer : Answer: National Company Law Tribunal
Description : Debenture holders of a company are its - (1) Shareholders (2) Creditors (3) Debtors (4) Directors
Last Answer : (2) Creditors Explanation: Companies issue debentures instead of shares to extend their business. These debentures are issue to borrow loan from general public; interest is paid on the borrowed money ... holders. So a debenture holder is essentially a creditor who simply gives loan to the company.
Description : Debenture holders of a company are its (1) Shareholders (2) Creditors (3) Debtors (4) Directors
Last Answer : Creditors
Description : The object of ‘Agenda’ is to inform– (A) About the profitability and activity (B) About the progress of company (C) About the matter in sequence to be discussed in the meeting (D) About the routine matters
Last Answer : Answer: About the matter in sequence to be discussed in the meeting
Description : Which of these must hold a Statutory Meeting ? (A) Public Limited Company (B) Private Company (C) Unlimited Company (D) All of these
Last Answer : Answer: Public Limited Company
Description : A company limited by shares has to call the statutory meeting within a period of not less than one month and not more than six months. This period is counted with reference to which one of ... date of actual receipt of certificate of incorporation (D) The date of actual commencement of business
Last Answer : Answer: The date at which the company is entitled to commence business
Description : A special resolution is passed in a company meeting by– (A) Simple majority (B) 2/3 majority (C) 3/4 majority (D) None of the above
Last Answer : Answer: 3/4 majority
Description : Distinguish between the following: Shareholders’ Meeting and Board Meeting.
Last Answer : Distinguish between the following: Shareholders’ Meeting and Board Meeting.
Description : An expectation of the public is that the auditor will recognize that the primary users of audit services are: a. The employees b. The investors and creditors c. The SEC d. The board of directors
Last Answer : The investors and creditors
Description : The audit program usually cannot be finalized until the a. Reportable conditions have been communicated to the audit committee of the board of directors. b. Engagement letter has been ... s internal control has been completed d. Search for unrecorded liabilities has been performed and documented
Last Answer : Consideration of the entity’s internal control has been completed
Description : What is the proper organizational role of internal auditing? a. To serve as an independent, objective assurance and consulting activity that adds value to operations. b. To assist the external auditor in ... . d. To serve as the investigative arm of the audit committee of the board of directors
Last Answer : To serve as an independent, objective assurance and consulting activity that adds value to operations.
Description : Which of the following is a violation Confidentiality rule of the Code of Ethics? a. The CPA, in response to a court subpoena, submits auditor-prepared workpapers as evidence of possible illegal ... CPA, when questioned in court, admits to knowledge of certain illegal acts perpetrated by the client.
Last Answer : The CPA warns Client B as to the inadvisability of acquiring Client A. The CPA bases this warning on knowledge of Client A's financial condition and a belief that the management of Client A lacks integrity ... was obtained by the CPA as a result of auditing Client A during the past several year is.
Description : What is the most likely course of action that will be taken by an auditor in assessing management integrity? a. Tour the client premises. b. Research the prospective client’s related parties. c. Research the background and histories of officers d. Review the minutes of the board of directors
Last Answer : Research the background and histories of officers
Description : Justify the following statement: Board of Directors can exercise their powers collectively through the Board Meeting.
Last Answer : Justify the following statement: Board of Directors can exercise their powers collectively through the Board Meeting.
Description : Minutes of Board of Directors Meeting?
Last Answer : Minutes of Board of Directors Meeting(Download)Pursuant to regular notice, dated ___________, a meeting of the Board of Directors meeting of ________________________ was held at ... further business to come before the meeting, the same was adjourned.Dated: ________________________________
Description : ‘Object Clause’ of a Memorandum of Association can be altered by– (A) Ordinary resolution (B) Special resolution (C) Special resolution and confirmation by Registrar of Companies (D) Special resolution and confirmation by Company Law Board
Last Answer : Answer: Special resolution and confirmation by Company Law Board
Description : The amount deposited in Securities Premium Account can be used for– (A) Distributing profits (B) Issue of Bonus Shares (C) Paying the amount to director (D) None of the above
Last Answer : Answer: Issue of Bonus Shares
Description : “Auditor is a watchdog and not a blood hound” was a remark made in the case of– (A) The London Oil Storage Co. Ltd. 1904 (B) Kingston Cotton Mills Ltd. 1896 (C) London and General Bank 1895 (D) Delightful Cigarette Co. Ltd. 1943
Last Answer : Answer: Kingston Cotton Mills Ltd. 1896
Description : The Quorum for the Annual General Meeting of a public company depends upon the number of shareholders.
Last Answer : Justify the following statement: The Quorum for the Annual General Meeting of a public company depends upon the number of shareholders.
Description : The vacancy of the office of the President of India must be filled up within- (1) 90 days (2) 6 months (3) One year (4) within the period decided by the Parliament
Last Answer : (2) 6 months Explanation: The vacancy of the office of the President of India must be filled up within 6 months.
Description : According to the Indian Constistution, the vacancy in the office of the President of India shall be filled within – (1) 1 month (2) 6 months (3) 3 months (4) 1 year
Last Answer : (2) 6 months Explanation: Article 62 of the Indian Constitution says that 'An election to fill a vacancy in the office of President occurring by reason of his death, resignation or removal, or otherwise ... office for the full term of five years from the date on which he enters upon his office.'
Description : The vacancy of the office of the President must be filled within : (1) 6 months (2) 12 months (3) 1 month (4) 3 months
Last Answer : (1) 6 months Explanation: According to Article 56 of the Indian Constitution, the election to fill a vacancy in the office of President occurring by reason of his death, resignation or removal, or otherwise ... after, and in no case later than six months from, the date of occurrence of the vacancy.
Description : An independent director is one who: A. Did not attend a school supported by the company. B. Does not have outside relationships with other directors. C. Does not have any other relationships with the company other than his or her D. directorship. E. All of the above
Last Answer : C. Does not have any other relationships with the company other than his or her