Page 235 - DCOM204_AUDITING_THEORY

Unit 11: Appointment, Right, Duties and Liabilities of an Auditor

Self Assessment Notes

Choose the appropriate answers:
5. Mr. Narayan, a Charted Accountant, has nineteen audits, Out of following audits which
audits should he accept to ensure he doesn't violate provisions of section 224(IB) __

(a) Audit of Zeba Ltd. a private company
(b) Audit of branch of Pointec Ltd. a foreign company
(c) Audit of two branches of Virtue Ltd. an Indian company
(d) All of them

6. Who is responsible for the appointment of statutory auditor of a limited company?
(a) Directors of the company
(b) Members of the company
(c) The Central Government

(d) All of the above
7. Which of the following statement is not true?
(a) A partnership firm can be appointed as a statutory auditor of limited company
(b) Appointment can be made in the name of the firm

(c) Majority of the partners should be practicing in India
(d) All partners should be chartered accountants
8. As per the requirements of section 226(3) and 226(4) a person is disqualified from being
appointed as a statutory auditor if he holds
(a) Equity shares or debentures of the company
(b) Equity shares carrying voting of the company
(c) Shares carrying voting rights of the company

(d) Security carrying voting rights of the company
9. The Board of Directors shall appoint first auditor of a company
(a) With in one month of completion of capital subscription state of the company
(b) With in one month of the promotion of the company

(c) With in one month of the commencement of the business of the company
(d) With in one month of incorporation of the company
10. The term of the auditor ship of first auditor would be from the date of appointment
till..................
(a) the conclusion of statutory meeting
(b) the conclusion of first annual general meeting
(c) the conclusion of next annual general meeting

(d) the date of removal

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