The branch auditor is appointed by___________?

Related Mcqs:

1. Assuming that it is not the first appointment of the auditor, who is responsible for the appointment of the auditor?

   A. The shareholders in a general meeting
   B. The managing director
   C. The board of directors in a board meeting
   D. The audit committee

2. 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

3. The auditor has serious concern about the going concern of the company. It is dependent on company’s obtaining a working capital loan from a bank which has been applied for. The management of the company has made full disclosure of these facts in the notes to the balance sheet. The auditor is satisfied with the level of disclosure. He should issue___________?

   A. unqualified opinion
   B. unqualified opinion with reference to notes to the accounts
   C. qualified opinion
   D. disclaimer of opinion

4. Who out of the following cannot be appointed as a statutory auditor of the company?

   A. Erstwhile director
   B. Internal auditor
   C. Relative of a director
   D. Only (B. and (C.

5. How long is the auditor’s term of office?

   A. Until the audit is complete
   B. Until the financial statements are complete
   C. Until the next AGM (Annual General Meeting)
   D. Until the directors remove them

6. The current file of the auditor’s working papers, generally, should include____________?

   A. A flowchart of the internal controls
   B. Organisation charts
   C. A copy of financial statements
   D. Copies of bond and debentures

7. When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the_____________?

   A. Amount of known misstatement is documented in working papers
   B. Estimates of the total likely misstatement is less than materiality level
   C. Estimate of the total likely misstatement is more than materially level
   D. Estimates of the total likely misstatement cannot be made

8. When applying analytical procedures, an auditor could develop independent estimate of an account balance to compare it to­___________?

   A. client’s unedited account balance
   B. client’s unedited account balance adjusted for trends in the industry
   C. Prior year audited balance
   D. Prior year audited balance adjusted for trends in the industry

9. 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

10. Auditor of a___________company does not have right to visit foreign branches of the company?

    A. Unlimited liability
    B. Manufacturing
    C. Banking
    D. Non­profit making