MCQs on Auditing (Part-6) (126 to 150)

 126. Remuneration of auditor of government company is fixed 

 a) By company in general meeting 

b) By BoD of Co 

c) By CG 

d) By CAG 

127. At any AGM, a retiring auditor may be re-appointed if 

a) He is not disqualified for re-appointment 

b) He has not given the company a notice in writing of his unwillingness to be re-appointed 

c) A special resolution has not been passed at AGM appointing some other auditor or providing expressly that he shall not be reappointed. 

d) All of the above 

128. Rotation of auditor is not applicable on 

 a) Dormant Company 

b) One Person Company 

c) Small Company 

d) Both (b) and (c) 

129. Rotation of auditor is applicable on unlisted public company if 

a) Its paid up share capital is more than Rs 10 Crore 

b) Its paid up share capital is equal to or more than Rs 10 Crore 

c) Its paid up share capital is more than Rs. 50 Crore 

d) Its paid up share capital is equal to or more than Rs 50 Crore. 

130. Rotation of auditor is applicable of private limited company if 

a) Its paid up share capital is more than Rs 10 Crore 

b) Its paid up share capital is equal to or more than Rs 10 Crore 

c) Its paid up share capital is more than Rs 50 Crore 

d) Its paid up share capital is equal to or more than Rs 50 Crore 

131. Rotation of auditor is always applicable on 

a) Listed Companies 

b) Government Companies 

c) Private Limited Companies 

d) All of these 

132. If rotation of auditor is applicable on company, term of an individual auditor will be 

a) One term of 5 consecutive years 

b) Two terms having 5 consecutive years in each term 

c) Till conclusion of next AGM d) None of these 

133. If rotation of auditor is applicable on company, term of partnership firm as auditor will be 

a) 10 Years 

b) Two terms having 5 consecutive years in each term 

c) Till conclusion of next AGM 

d) None of these 

134. A break in the term for continuous period of ____________ years shall be considered as fulfilling the requirement of rotation 

a) 1 Year 

b) 5 Years 

c) 10 Years 

d) 20 Years 

135. As on date of appointment no audit firm having a common partner or partners to audit firm, whose tenure has expired in a company, shall be appointed as auditor of the same company for a period of _____ years 

a) 1 

b) 3 

c) 5 

d) 10 

136. Which of the following services is not prohibited for auditor of company 

a) Internal Audit 

b) Tax Audit 

c) Book-keeping 

d) Actuarial Service 

137. Which of the following is prohibited service for auditor of company 

a) Tax Audit 

b) Income Tax Representative 

c) Tax Consultant 

d) None of these 

138. Pick the odd one out w.r.t. auditor of company 

a) Representing client before taxation authorities 

b) Management Services 

c) Internal Audit 

d) Actuarial Service 

139. Auditor shall not render prohibited services as specified u/s 144 of the Co Act, to 

a) The Company 

b) Holding Company of the Company 

c) Subsidiary Company of the Company 

d) All of the above 

140. Auditor shall not render prohibited services to the company or its holding company or its subsidiary company_________________ 

a) Directly 

b) Indirectly 

c) Directly or Indirectly 

d) None of these 

141. Which one of the following is incorrect 

a) Auditor of company can be appointed as internal auditor of holding company of the company. 

b) Auditor of company can be appointed as internal auditor of associate company of the company. 

c) Any relative of auditor cannot be appointed as internal auditor of the company 

d) Any partner of auditor cannot be appointed as internal auditor of the company. 

142. Which of the following in not mentioned along with signing on audit report 

a) Membership number of individual/partner 

b) Firm’s registration number in case of partnership firm as auditor 

c) Date 

 d) Time 

143. In case of removal of auditor under section 140 (1), an application for obtaining approval of such removal is made to 

a) CG 

b) CAG 

c) ROC 

d) NCLT 

144. CG approval is required when auditor is to be removed 

a) After expiry of term 

b) Before expiry of term 

c) By order of tribunal 

d) All of the above 

145. For removal of auditor before expiry of term of auditor, which of the following form is filed with CG for getting approval of such removal 

a) ADT-1 

b) ADT-2 

c) ADT-3 

d) ADT-4 

146. Which of the following form is filed by auditor in case of his resignation 

a) ADT-1 

b) ADT-2 

c) ADT-3 

d) ADT-4 

147. In case of resignation by auditor, ADT-3 shall be filed by auditor within _________days of resignation a) 7 

 b) 10 

c) 15 

d) 30 

148. In case resigning auditor does not file ADT-3 as required, the minimum penalty shall be 

a) Rs 50,000 

b) Remuneration of auditor 

c) Rs 50,000 or remuneration of auditor, which is less 

d) Rs 50,000 or remuneration of auditor, whichever is higher 

149. Under section 140(4), the retiring auditor is entitled to 

a) Make a representation against his removal 

b) Request the company to circulate the representation to members 

c) Personally communicate the members on one to one basis 

d) Both (a) and (b) 

150. _________ may order that the representation received u/s 140(4) shall not be circulated and read out at meeting 

a) CAG 

b) ROC 

c) Tribunal 

d) C