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 : The first Secretary of the company is appointed by– (A) Shareholders (B) Promoters (C) Government (D) Directors
Last Answer : Answer: Promoters
Description : The first directors of a company are appointed by– (A) Promoters (B) Government (C) Shareholders (D) Company Law Board
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 : A vacancy caused by the resignation of the auditor is filled only by the– (A) Board of Directors of the Company (B) Central Government (C) General Meeting of the shareholders (D) Managing Director of the company
Last Answer : Answer: General Meeting of the shareholders
Description : Which one of the following statements is correct ? (A) Internal audit and Management audit are the same (B) Internal audit and statutory audit are the same (C) Internal audit is compulsory in all cases (D) Statutory audit of company accounts is compulsory
Last Answer : Answer: Statutory audit of company accounts is compulsory
Description : Reserve Bank of India is a– (A) Government Company (B) Departmental Organisation (C) Statutory Corporation (D) None of the above
Last Answer : Answer: Government Company
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 : 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 : Liability of a Company Secretary is– (A) Contractual only (B) Statutory only (C) Civil only (D) Both contractual and statutory
Last Answer : Answer: Both contractual and statutory
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 : Warning signs that cause the auditor to question management integrity must be taken seriously and pursued vigorously. Which of the following may lead the auditor to suspect management ... with the controller for the purpose of discussing accounting practices that will maximize reported profits
Last Answer : The president and chief executive officer of the client corporation has held numerous meetings with the controller for the purpose of discussing accounting practices that will maximize reported profits
Description : Internal activity of a company is going to be performed according to established regulations. This assumption is provided as a right by– (A) Doctrine of Indoor Management (B) Doctrine of Constructive Notice (C) Doctrine of Ultravires (D) Doctrine of Intravires
Last Answer : Answer: Doctrine of Indoor Management
Description : Which is a document containing a rules and regulations for the internal management of the company?
Last Answer : The article of association
Description : Who can be appointed as a Company Secretary under the Companies Act, 1956 ? (A) An individual (B) A partnership firm (C) A company (D) None of the above
Last Answer : Answer: An individual
Description : “A body of persons elected or appointed to meet on an organised basis for the discussion and dealing of matters brought before it.” It is called– (A) Functional organisation (B) Formal organisation (C) Committee organisation (D) Informal organisation
Last Answer : Answer: Committee organisation
Description : The tool used by auditor to monitor and control the progress of audit work is– (A) Engagement diary (B) Audit programme (C) Audit working papers (D) Audit notes.
Last Answer : Answer: Audit programme
Description : Sometimes an auditor is called upon to review the operations of an enterprise for evaluating their cost-effectiveness. What is this kind of audit generally known as ? (A) Cost Audit (B) Operations Audit (C) Tax Audit (D) Independent Financial Audit
Last Answer : Answer: Cost Audit
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 : 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 : What is the main distinction between an Auditor and an Accountant?
Last Answer : It is the duty of the auditor to prepare the accounts, The accounts has to be prepared by the accountant where as the auditor is concerned with the detailed and critical examination of the account book
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 : Which of the following statements are correct about the Central Information Commission? 1. The Central Information Commission is a statutory body. 2. The Chief Information Commissioner and other Information Commissioners are appointed by the ... 2 and 4 (C) 1, 2 and 3 (D) 2, 3 and 4
Last Answer : Answer: C
Description : The comptroller and Auditor General of India - (1) Can be appointed as a member of UPSC after his retirement (2) Can be appointed as the Chairman of State Public Service commission (3) Is ... or the state government after his retirement (4) Can be appointed to any office after his retirement
Last Answer : (3) Is not eligible for any further office either under the Central government or the state government after his retirement Explanation: The Comptroller and Auditor General of India is not ... the central government or state government after his retirement current CAG of India - Rajiv Mehrishi.
Description : Which of the following is called Backbone of auditing ? (A) Routine checking (B) Vouching (C) Internal checks (D) Internal control
Last Answer : Answer: Vouching
Description : Which one of the following is not included in the internal check as regards purchases ? (A) Assessment of requirements (B) Placing orders (C) Despatch of goods (D) Recording and making payments
Last Answer : Answer: Despatch of goods
Description : Organisational change is necessitated by– (A) External environmental pressure (B) Internal strengths and weaknesses (C) Sequential changes (D) All the above
Last Answer : Answer: All the above
Description : Internal Audit is provided for in the– (A) Companies Act (B) Partnership Act (C) Both (A) and (B) (D) Neither (A) or (B)
Last Answer : Answer: Neither (A) or (B)
Description : Which one of the following is called backbone of auditing ? (A) Routine checking (B) Vouching (C) Internal check (D) Internal control
Description : The Open Market Operations [OMOs] is an important tool of– (A) Forex management (B) Liquidity management (C) Inventory management (D) Marketing management
Last Answer : Answer: Liquidity management
Description : Which one of the following functions is served most by information technology ? (A) Replacement of human labour (B) Provision for a handle to the management to improve industrial relations (C) Substitution of human information processing (D) Rationalisation of office work
Last Answer : Answer: Rationalisation of office work
Description : Which one of the following is the most appropriate task of office management ? (A) Creation of profit centre (B) Creation of control centre (C) Making office supplies available (D) Supervision of production Quality Control
Last Answer : Answer: Creation of control centre
Description : In which one of the following, Crisis Management is reflected ? (A) Future expansion plans of business (B) Organization Development Programme (C) Short-term Manpower Planning (D) Prudent managerial leadership
Last Answer : Answer: Prudent managerial leadership
Description : Hawthorne studies have underlined the significance of which of the following ? (A) System approach to management (B) Contingency approach to management (C) Modern approach to management (D) Human relations approach to management.
Last Answer : Answer: Human relations approach to management.
Description : Which one of the following is the most appropriate management control technique for timely completion of a project ? (A) Organisation chart (B) Management by Objectives (C) PERT (D) Span of control
Last Answer : Answer: PERT
Description : The matrix management model is based on a matrix of values between 0 and 9 for two primary variables. Which of the statements given above is/are correct ? (A) 1 only (B) 2 only (C) Both 1 and 2 (D) Neither 1 nor 2
Last Answer : Answer: Both 1 and 2
Description : Who is Father of Scientific Management ? (A) Henry Fayol (B) Elton Mayo (C) Chester Bernard (D) F. W. Taylor
Last Answer : Answer: F. W. Taylor
Description : Share Premium received by a Company may be used for– (A) Payment of dividend (B) Payment of remuneration to management (C) Issue of Bonus shares (D) None of these
Last Answer : Answer: Issue of Bonus shares
Description : The primary function of an office is– (A) Making, using and preserving records (B) Remunerating personnel (C) Carrying out management policies (D) Safeguarding organization’s assets
Last Answer : Answer: Making, using and preserving records
Description : Who is called ‘The Father of Scientific Management’ ? (A) Elton Mayo (B) Henry Fayol (C) E. F. L. Breach (D) F. W. Taylor
Description : Management by exception implies focussing attention on– (A) All variations (B) Normal variations (C) Abnormal variations (D) Randomly selected variations
Last Answer : Answer: Abnormal variations
Description : MBO approach in management was introduced by– (A) M. P. Follet (B) Keith Davis (C) Peter Drucker (D) Oliver Sheldon
Last Answer : Answer: Peter Drucker
Description : Planning function of management is performed by– (A) Top management (B) Middle management (C) Lower management (D) All of the above
Last Answer : Answer: All of the above
Description : Which management functions are closely related to ? (A) Planning and Organising (B) Organising and Staffing (C) Staffing and Control (D) Planning and Control
Last Answer : Answer: Planning and Control
Description : The ‘Principle of Exception’ states that management should– (A) Check everything without exception (B) Invariably take corrective action without exception (C) Accept exceptions in emergencies (D) Concentrate their attention on exceptions
Last Answer : Answer: Concentrate their attention on exceptions
Description : The Branch of Accounting which is concerned with the processing and presenting data for decision making is known as– (A) Common Dollar Accounting (B) Social Accounting (C) Cost Accounting (D) Management Accounting
Last Answer : Answer: Management Accounting
Description : What does management audit imply ? (A) Complete audit (B) Detailed audit (C) Efficiency audit (D) Interim audit
Last Answer : Answer: Efficiency audit