B.com Sem-6 Auditing No. Question Ans . A Ans. B Ans. C Ans. D Ans. According to sec. 208, the percentage o dividend on capital 1 10% 12% 5% 45% D should not be more than The percentage of unwriting commission on shares and For shares 2.5% and For shares 5% and for For shares 2% and for For shares 12% and 2 B debentures are the following respectively for debentures 5% debentures 2.5 % debentures 3% for debentures 5% Companies Act does Can be utilised if articles Can the securities premium be utilized to convert partly paid not provide 3 No Yes of association of the A up equity shares in to fully paid up shares as bonus ? anything with Company Providers respect to this After the end of Financial year, within how much time, Final At anytime before the 4 Accounts of a Company should be presenyted in Anmnual Three Months Six Months None of the above B end of next financial year General Meeting ? 5 Minimum time lag required between two bonus issue is : 12 Months 24 Months 36 Months None of the above D

Dividend warrants should be issued to or dividend should Before the end of 6 be paid to the members within how much time, after the 21 days 42 days 30 days D respective financial year dividend is declared ? As per the requirements of Companies Act, the gap 7 between date of Profit and Loss A/c and the date of Six months Thress months Nine months Four months A A.G.M at which it is laid, should not exceed: Unpaid dividend should be transferred to a sepcial 8 unpaid dividend account after days of declaration of Sixty days Fourty two days Thirty days Fourty days C dividend ? The surplus realised on forfeiture of shares is transferred General Reserve Capital Reserve Share Premium 9 Profit and Loss Account B to which account? Account Account Account The conditions for issue of shares at discount are laid 10 Section 79 Section 78 Section 80 Section 82 A down in _____ section of The Companies Act.

Recognised stock To which of the following parties is the auditor expected to Board of Directors Shareholders of the exchange on which 11 Central Government C address his Report ? of the company Company the shares of the company are listed The report issued to company having no defect in books of 12 Clean Report Interim Report Partial Report Qualified Report A accounts is known as____. The Private Companies Banking and insurance whose share capital and 13 To which companies does the Order of 2003 not apply ? Foreign companies Guarantee company C companies reserves are more than one crore. To which of the following Act is the auditor exoected to 14 1932 Partnership Act 1956 Company Law 1960 Company Law 1913 Company Law B address his Report ? To which of the following Parties is the auditor expected to Board of Directors Not addressed to any Shareholders of the 15 Central Governm,ent C address his certificate ? of the company party company To which of the following parties is the company auditor Shareholders of Board of Directors of 16 Central Government Company Secretary A expected to address his Report ? company company To which of the following act is the company auditor expected 1949 Law and order 2,000 Income Tax 17 1932 Partnership Act 1956 Company Act C to address his Report Rules act 18 ______is a statement of collected and considered facts Audit Programme Report Audit statement None of the above B Maximum % of underwriting commission payable on shares is 19 2% 2.50% 5% 12% C ____.

Total paid up equity share capital of a company is Rs. 25 lakhs. Current year's profit after depreciation and tax is Rs. 7 lakhs. 20 Rs. 4,50,000 Rs. 2,50,000 Rs. 52,500 Rs. 70,000 C What will be the minimum amount to be transferred to reserve, if the recommended rate of dividend is 18%

Unpaid dividend should be transferred to a special unpaid 21 30 42 37 60 A dividend A/c after ______days of declaration of dividend

The profit that is to be distributed among shareholders as per 22 Divisible Profit Gross Profit Reserve Profit Capital Profit A prescribed rate of dividend is called Dividend warrants should be issued to or dividend should be 23 paid to the members within how much time, after the 21 days 30 days 42 days 45 days B dividend is declared ? Current year profit of a company is Rs. 4,00,000, Calculate the amount required to be transferred to General Reserve. If the 24 Rs. 54,000 Rs. 30,000 Rs. 20,000 Rs. 1,00,000 C company decides to declare dividend on share capital at the rate of 13.5%

The rat of interest not exceed ______per annum or such order rate as prescribed by the Central Government by 25 4% 10% 14% 7.50% A notification in the official u/s Gazette when interest paid out of capital of 208. The rate of interest not exceed ______per annum or such order rate as prescribed by the Central Government by 26 8% 7.50% 4% 10% C Notification in the Official Gazette, when interest paid out of capital of u/s 208 Current year profit of a company is Rs. 6,00,000. Calculate the amount required to be transferred to general reserve if 27 Rs. 60,000 Rs. 1,00,000 Rs. 30,000 Rs. 45,000 C company decides to declare dividend on share capital at the of 13.5%

The period of Embezzlement of Which one of the following is not required to be The nature of Qualifications of 28 investigation to be cash to be C considered for 'Investigation in case of suspected fraud' ? fraud suspected directors of the company convered examined

Carry out, in detail, the valuation of Which one of the following points is not relevant while Get details regarding Examine the Examine the securities stock and other 29 conducting an investigation on behalf of a creditor or a bank loan application rejected D purpose of loan offered assets of the granting loan ? in the past; prospective borrower Embezzlement of Disqualifications of The period of Which one of the following is not required to be The nature of fraud 30 cash to be Directors of the investigation to be C considered for "Investigation in case of suspected fraud"? suspected examined company covered

Technical details of Accounting system Which one of the following details is not required to be System of internal Report of the 31 business or adopted by the C obtained before preparing an audit programme ? check; previous auditor institution competitors No. Question Ans . A Ans. B Ans. C Ans. D Ans. 32 Internal Audit Financial None of B audit and required audit and the Audit can be divided into external under law cost audit above two catagories audit and voluntary audit 33 In comparision to the Cost Internal Legal B independent auditors, an accounting control compliance system system Accounting internal auditor is more system likely to be concerned with The term “Audit” originated from Audire Adhere Adihere None of A 34 the Latin word the above The basis for decision making by Accounting Financial Bank None of B 35 the management is statements Statement statements the above The management takes so many Accounting Financial Bank None of B 36 decisions on the basis of statement statements statements the above The authenticity of financial nternal Performance ndependant C 37 statements is very essential and Audit Audit Audit None of such authenticity of accounts the above can be assured with the help of an Examination of books of accounts Accountant Managemen Company D 38 with supporting vouchers and Director documents in order to detect Auditing and prevent error and fraud is the main function of Express an opinion on the financial Accounting Managing Auditing None of C 39 or non financial areas is the goal of the above In the case of financial audit, a set Error Fraud Material C 40 of financial statements are said to Misstatements None of be true and fair when they the above are free of Internal audit is an evaluation and Accounting Managemene Internal audit External C 41 analysis of the business operation staff staff audit staff conducted by the In big organization an internal in the outside the As A 42 audit is carried out by the team of organization organization outsourcing as retailers professionals function over over audit over over The purpose of internal Audit is to D 43 accounting activities management business keep proper control activities activities activities Accounting Internal audit Management Statutory The purpose of internal audit is to A 44 system system accounting audit evaluate the system system The purpose of internal audit is to Accounting Auditing working of Working of D 45 review the aspects aspects employees business The purpose of internal audit is to Accouning Audit staff Management Assets D 46 protect the staff Internal Internal audit nternal check The purpose of internal audit is to All of the C 47 control system system evaluate the above system The purpose of Internal audit is to Bank Cash records Accounting Employees C 48 detect the error in the records records records The purpose of Internal audit is to bank Cash accounts Cost accounts Books of D 49 detect frauds in the accounts account The purpose of internal audit is to Accountant Internal External Employees D 50 determine liabilities of – b auditor auditor