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

Related Mcqs:

1. 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

2. 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

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. When an auditor is proposed for removal from office, which one of the following is he NOT permitted to do?

   A. Circulate representations to members
   B. Apply to the court to have the proposal removed
   C. Speak at the AGM/EGM where the removal is proposed
   D. Receive notification of the AGM/EGM where the removal is proposed

5. The auditor’s permanent working paper file should not normally, include__________?

   A. Extracts from client’s bank statements
   B. Past year’s financial statements
   C. Attorney’s letters
   D. Debt agreements

6. 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

7. 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

8. The authority to remove the first auditor before the expiry of term is with__________?

   A. the shareholders in a general meeting
   B. the shareholders in the first annual General meeting
   C. the board of directors
   D. the Central Government

9. 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.

10. A statutory auditor has a right of access at all times to___________?

    A. Books and accounts of a company
    B. Books, accounts and documents of the company
    C. Books, accounts and vouchers of the company
    D. Notices and documents of the company