MCQS on Banking and Insurance (Part-6 101 to 120)

 101. Joint audit implies 

a) Audit of two concerns together 

b) Audit of joint stock companies 

c) Audit of joint sector companies 

d) Audit by two firms of C.A 

102. Systems audit implies 

a) Systematic examination of accounts

 b) Audit undertaken to improve auditing systems 

c) Enquiring accounting and control systems 

d) Checking the performance of management 

103. Internal check is carried on by 

a) Special staff 

b) Internal auditor 

c) Accountant 

d) None of the above 

104. Errors of omission are 

a) Technical errors 

b) Error of principle 

c) Compensating errors 

d) None of the above 

105. Payment for goods purchased should be vouched with the help of 

 a) Creditors statement 

b) Correspondence with suppliers 

c) Cash memos 

d) Ledger accounts 

106. Investment should be vouched with the help of 

a) Commission book 

b) Brokers book 

c) Sales deeds 

d) Minute book 

107. Object of verification of assets

 a) Physical verification of assets 

b) Checking value of assets 

c) Examining the authority of their acquisition 

d) All of the above 

108. “Auditor is not valuer” was stated in 

 a) Kingston Cotton Mills case 

b) London & General Bank case 

c) Lee. V. Neuchatel Co. Ltd case 

d) London oil Storage Co. case 

109. Book debts should be verified with the help of 

a) Balance sheet 

b) Amount received from Debtors 

c) Debtors schedule 

d) Certificate from the management 

110. A special auditor is appointed by the 

a) Shareholders 

b) Board of Directors 

c) Central Government 

d) C & A – G 

111. A company auditor can be removed before expiry of his term by 

e) Shareholders 

f) Board of Directors 

g) Central Government 

h) State Government 

112. An auditor of Government company has to submit his report to the

 a) Shareholders 

b) Central Government 

c) C & A – G d) Ministry concerned 

113. While checking allotment of shares the auditor should see that it is made within 

a) 100 days of issue of prospectus 

b) 120 days of issue of prospectus 

c) 150 days of issue of prospectus 

d) 80 days of issue of prospectus 

114. A company can issue Redeemable Preference shares, if authorized by 

a) Memorandum of association 

b) Articles of association 

c) Companies Act, 1956 

d) None of the above 

115. Premium received on issue of shares, later forfeited, should be transferred to 

a) Capital reserve

 b) Shares forfeited Account 

c) Capital Account 

d) None of the above 

116. Special resolution means ________. 

a) 1/3 majority 

b) 2/3 majority 

c) ½ majority 

117. Auditor is an ________ of a shareholder 

 a) Owner 

b) Agent 

c) Employer

 d) None of the above 

118. _______ audit is forward looking - 

a) Financial 

b) Cost 

c) Tax 

d) Final 

119. The meeting held by the company with in a period of not less than one month and not more than 6 months is called _______. 

a) Statutory 

b) Annual 

c) General 

d) None of the above 

120. __________ audit is not a statuary requirement 

a) Management 

b) Financial 

c) Tax Audit

 d) All of the above