aCCOUNTANT rpsc audit ;- The primary objective of audit is to: (a) Verify and value assets as per Company’s Act (b) Verify liabilities and report to Registrar of companies (c) Verify and report on the State of affairs of the business (d) appoint auditors Ans. (c) 42. Balance Sheet audit is useful if the concern: (a) is weak in internal check (b) has no internal check (c) is a small one (d) is a big one Ans. (d) 43. Audit Note book is a: (a) personal note book of an auditor (b) record of work performed by an auditor (c) record of important points and enquiries which are auditor has to refer to his client (d) record of mistakes and errors detected during the course of audit of accounts books Ans. (d) 44. Consider the following statements: In order to plan and prepare his audit programme, an auditor must obtain information relating to: 1. Client’s history and business 2. Purpose and nature of engagement 3. Time schedule for the completion of audit Of these statements: (a) 1, 2 and 3 are correct (b) 1 and 3 are correct (c) 2 and 3 are correct (d) 3 alone is correct Ans. (c) 45. When the auditor examines and tests the client’s accounting and other control systems to see whether or not they constitute a reliable base for the preparation of accounts, then it is known as: (a) Balance Sheet audit (b) System audit (c) Continuous audit (d) Internal audit Ans. (d) 46. By observing, testing and assessing, an auditor examines the system of: (a) Internal audit (b) Internal control (c) Continuous audit (d) Statutory audit Ans. (b) 47. Which one of the following statements regarding the Internal check system is correct? Its purpose is to (a) have an accurate record of all the business transactions (b) know th accounting method followed in the business (c) plan for future audit works (d) ascertain the profit, earning capacity of the business Ans. (a) 48. An auditor of a partnership firm is appointed as per (a) statute (b) government orders (c) agreement (d) convention Ans. (c) 49. A company auditor may be removed in the meeting of the: (a) Board of Directors when the Managing Director is also present (b) Board of Directors (c) Majority Share holders (d) General Body of shareholder Ans. (d) 50. According to Sec. 224 of the Companies Act, 1956, a company auditor may be appointed by any of the three appointing authorities. The correct sequence of the order in which they can exercise their power to appoint a company auditor in the life of a company other than a government company is: (a) Board of Directors, Central Government, Shareholders (b) Central Government, Shareholders, Board of Directors (c) Shareholders, Board of Directors, Central Government (d) Board of Directors, Shareholders, Central Government Ans. (d)
Posted on: Sun, 25 Jan 2015 11:05:21 +0000
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