MCQs on Audit & Assurance (Part-20) (751 to 800)

MCQS ON AUDIT & ASSURANCE 

 751. A Society may invest its funds

a) In stock market through stock exchange

b) In the Central or Other Co-Operative Bank

c) In the shares, securities, bonds or debentures of any other society whether limited liability or unlimited liability

d) None of these

752. A Society may invest its funds

a) In any of the securities specified in section 20 of the Indian Trusts Act, 1882

b) In the shares, securities, bonds or debentures of any other society with limited liability

c) In any co-operative bank, other than a Central or State Co-Operative bank, as approved by the Registrar on specified terms and conditions.

d) Any of the above

753. ________ % of the profits should be transferred to Reserve Fund, before distribution as dividend or bonus to members.

a) 10

b) 20

c) 25

d) 30

754. A registered society may, with the sanction of the Registrar, contribute an amount not exceeding ______ of _______________ for any charitable purpose.

a) 10%, Net profits remaining after the compulsory transfer to the reserve fund

b) 10%, Net profits before compulsory transfer to the reserve fund

c) 5%, Net profits remaining after the compulsory transfer to the reserve fund

d) 5%, Net profits before compulsory transfer to the reserve fund

755. Society may use the Reserve Fund

a) In the business of a society, as working capital

b) May invest as per the provision of the Co-Operative Societies Act, 1912

c) May be used for some public purposes likely to promote the objective of the society

d) Any of the above

756. Special Report to the Registrar is required

a) If auditor detect fraud

b) Personal profiteering by members of the managing committee in transaction of the society

c) Mis-management

d) All of the above

757. Who can be appointed as auditor of Multi State Co-Operative Society

a) Chartered Accountant within the meaning of the Chartered Accountants Act, 1949

b) Person holding a government diploma in co-operative accounts and accountancy

c) Person who has served as an auditor in the co-operative department of government to act as an auditor.

d) Any of the above

758. The First Auditor of Multi State Co-Operative Society shall be appointed by ____________ within_______________.

a) Registrar of Society, One month of date of registration of such society

b) Board, One month of date of registration of such society

c) Members, 90 days of date of registration of such society

d) Central Registrar, One month of date of registration of such society.

759. Subsequent Auditor of Multi State Co-Operative Society is appointed

a) At Board’s Meeting

b) By Central Registrar

c) At AGM

d) By Secretary of the Society

760. Subsequent Auditor of Multi State Co-Operative Society shall hole office of auditor until

a) Submission of audit report

b) Conclusion of 6th AGM

c) Conclusion of 5 Years

d) Conclusion of next AGM

761. The audit report on the financial statements of society shall contain schedule with particular of

a) All transactions which appears to be contrary to the provisions of the Act, Rules or Byelaws of society

b) All sums, which ought to have been, but have not brought into account by the society

c) Any material, or property belonging to society which appears to the auditor to be bad or doubtful of recovery

d) All of the above

762. _______________ has power to direct Special Audit in certain cases of Multi-State Co-Operative Society

a) Central Government

b) Central Registrar

c) Managing Committee

d) Members of Society

763. Under which of the following circumstances order of Special Audit is passed

a) The affairs of any MSCO are not being managed in accordance with self-help and mutual did and co-operative principles or prudent commercial practices or with sound business principles; or

b) Any MSCO is being managed in a manner likely to cause serious injury or damage to the interests of the trade industry or business to which it pertains; or

c) The financial position of any MSCO is such as to endanger its solvency.

d) Any of the above

764. The Special Auditor shall submit his report to

a) Managing Committee of Society

b) Members of Society

c) Central Government

d) Central Registrar

765. Which of the following may request to Central Registrar to conduct an inquiry

a) Central Government

b) A Creditor

c) At least 10% of members of the Board

d) At least 15% of the total number of members.

766. Inquiry by Central Registrar may be conducted into the

a) Constitution

b) Working

c) Financial Condition

d) Any of the above

767. LLP, whose turnover does not exceed Rs. ________ or whose contribution does not exceed Rs. _________, is not required to get its accounts audited.

a) 40 Lakhs, 25 Lakhs

b) 50 Lakhs, 25 Lakhs

c) 40 Lakhs, 20 Lakhs

d) 60 Lakhs, 30 Lakhs

768. Who of the following can be appointed as auditor of LLP

a) A Chartered Accountant

b) A Chartered Accountant in Practice

c) A Cost Accountant

d) A Chartered Accountant or A Cost Accountant

769. The auditor LLP is appointed by designated partner

a) At any time for the first FY but before the end of first FY

b) At least 30 days prior to the end of each FY (Other than first FY)

c) Both (a) and (b)

d) Within 180 days from commencement of FY which is subject to audit

770. If designated partners of LLP have failed to appoint auditor then auditor of LLP is appointed by

a) Registrar

b) Central Government

c) Local Fund Audit Wing of State Government

d) Partner of LLP

771. The auditor of LLP shall hold office of auditor till the period

a) The new auditor is appointed

b) Auditor is reappointed

c) (a) or (b)

d) 180 days from closure of FY.

772. Every LLP shall file an annual return duly authenticated with the ___________ within ___________ days of closure of its FY

a) Registrar, 30

b) Registrar, 60

c) Central Government, 30

d) Local Fund Audit Wing of State Government, 60

773. LLP shall file Annual return with Registrar in _________

a) Form 11

b) Form 12

c) Form 13

d) Form 14

774. LLP are required to maintain books of accounts which shall contain

a) Particulars of all sums of money received and expended by the LLP and the matters in respect of which the receipt and expenditure take place

b) A record of the assets and liabilities of the LLP

c) Statements of cost of goods purchased , inventories, work-in progress, finished goods and costs of goods sold

d) All of these

775. LLP is required to submit Statement of Account and Solvency with the ____________ within a period_______________

a) Central Government, 6 Months of FY to which the Statement of Account and Solvency relates

b) Registrar, 6 Months of FY to which the Statement of Account and Solvency relates

c) Registrar, 30 Days from end of 6 months of the FY of FY to which the Statement of Account and Solvency relates.

d) Local Fund Audit Wing of State Government, 6 Months of FY to which the Statement of Account and Solvency relates

776. Which of the following document of LLP is not available for inspection by any person

a) Agreements entered by LLP

b) Incorporation Document

c) Statement of Account and Solvency

d) Annual Return

777. The fees for inspection of document of LLP is

a) Rs 100 and Rs 10 per page for certified copy or extract of any document

b) Rs 50 and Rs 5 per page for certified copy or extract of any document

c) Rs 50 and Rs 10 per page for certified copy or extract of any document

d) Rs 100 and Rs 5 per page for certified copy or extract of any document

778. Which of the following is not type of bank

a) Commercial Banks

b) Regional Rural Bank

c) Payment Bank

d) None of these

779. ________________ are the most wide spread banking in India

a) Small Finance Banks

b) Co-Operative Banks

c) Commercial Banks

d) Development Banks

780. Main functions of Commercial banks are

a) Accepting Deposits

b) Granting Advances

c) Both (a) and (b)

d) None of these

781. The functioning of banking industry in India is regulated by the _______________

a) Finance Ministry

b) Reserve Bank of India

c) President of India

d) CAG

782. _______________ acts as Central Bank of India

a) Reserve Bank of India

b) State Bank of India

c) Central Bank of India

d) Union Bank of India

783. Important functions of RBI are

a) Issuance of currency

b) Regulation of currency issue

c) Acting as banker to Central and State Governments

d) All of the above

784. No bank can commence business of banking or open new branches without obtaining license from

a) President of India

b) Finance Ministry

c) Reserve Bank of India

d) State Bank of India

785. Which of the following are principal enactments which govern the functioning of various types of banks

a) Banking Regulation Act, 1949

b) Companies Act, 2013

c) Information Technology Act, 2000

d) All of these

786. Which of the following section of the banking Regulation Act, 1949 deal with from and content of financial statements of banking company

a) Section 128

b) Section 129

c) Section 29

d) Section 28

787. Auditor of nationalized bank is appointed by

a) BoD of the Bank

b) Reserve Bank of India

c) CAG

d) Central Government

788. Auditor of the State Bank of India is appointed by

a) BoD of the SBI

b) CAG

c) Reserve Bank of India

d) Central Government

789. The auditors of Subsidiaries of SBI are to be appointed by

a) Reserve Bank of India

b) CAG

c) Central Government

d) SBI

790. The auditor of regional rural banks is appointed by

a) Bank concerned with the approval of the Central Government

b) Bank concerned without any previous approval of the Central Government

c) RBI

d) CAG

791. The matters which the banks require their auditors to deal with in the Long Form Audit Report is to be specified by

a) CAG

b) RBI

c) Central Government

d) Banking Regulation Act, 1949

792. The LFAR is to be submitted before _____________ every year

a) 30th September

b) 31st July

c) 30th June

d) 31st May

793. Advances comprises of funded amounts by way of

a) Term loans

b) Cash Credits, Overdrafts, Demand Loans

c) Bills Discounted and Purchased

d) All of the above

794. In case of banking companies, Accounts showing stress signals are classified as

a) SMA 0

b) SMA 1

c) SMA 2

d) None of these

795. In case of banking companies, Accounts overdue between 31 to 60 days, are classified as

a) SMA 0

b) SMA 1

c) SMA 2

d) None of these

796. In case of banking companies, Accounts overdue between 31 to 60 days, are classified as

a) SMA 0

b) SMA 1

c) SMA 2

d) None of these

797. NPA Loans of Banking Companies are classifies as

a) Substandard

b) Doubtful

c) Loss

d) Any of the above, depending upon circumstances

798. Assets which does not disclose any problem and does not carry more than normal risk attached to the business, are classifies as

a) Standard Assets

b) Substandard Assets

c) Good Assets

d) Genuine Assets

799. Assets which has been classifies as NPA for a period not exceeding 12 months, are classified as

a) Standard Assets

b) Substandard Assets

c) Doubtful Assets

d) Loss Assets

800. Assets which has been classifies as NPA for a period exceeding 12 months, are classified as

a) Standard Assets

b) Substandard Assets

c) Doubtful Assets

d) Loss Assets