Level 2: CA Final Audit – Chapter 7 – Audit Commitee and Corporate Governance MCQs – Set I

_________ are responsible for governance of their companies.

The system by which companies are directed and governed by the management is

SEBI ( LODR) Regulations, 2015 issued on :

________________ issued the LODR Regulations

SEBI issued ‘LODR Regulations’ with the objective of _____________

The components of LODR Regulations are

Substantive Provisions incorporated in _______

Procedural requirements of LODR regulations are incorporated in the form of ___________

LODR Regulations deal with ______

What are the issues not addressed in the LODR Regulations regarding Corporate Governance?

________ is not issue of Corporate Governance.

The provisions applicable to listed companies on the basis of market capitalisation criteria continue to apply to such entity even if they fall below such thresholds

LODR Regulations are applicable to the listed entity which has listed _________

The designated securities on recognised stock exchange in LODR Regulations are

Audit Committee shall have minimum _____ director as members –

_______ of the members of Audit Committee shall be independent director.

________ the members of Audit Committee, in case of a listed entity having outstanding superior Rights Equity shares, shall be independent director

All members of Audit Committee shall be financially literate and at least _____ shall have accounting or related financial management expertise

In the above statement, financially literate means the ability to read and Understand basic financial Statements i.e., Balance Sheet, Profit & Loss Statement, Statement of Cash Flows etc., Given statement is:

A member will be considered to have accounting or related financial management expertise if:

The chairperson of Audit committee
(A) Shall be an independent director
(B) Shall not be independent director
(C) Shall be present at AGM to answer shareholder queries.
(D) Shall be present at AGM to answer other directors and employees queries

Secretary of Audit Committee shall be:

Audit committee, ________, shall invite the finance director or head of finance function to be present at committee meetings,

Audit Committee shall meet at least ______ times in a year and not more than _______ shall lapse between 2 meetings:

Quorum of Audit Committee meetings is –

Powers of Audit committee is covered in Regulation _________

Audit Committee shall have powers to:

The auditor shall check whether the terms of reference of the Audit Committees have been suitably framed mentioning the above powers

Which one of following is NOT a role of Audit Committee in [Part C(A) of schedule II]

Reviewing the utilization of loans and/or advanced from investment by the holding company in subsidiary, including existing advances / investment, exceeding _______, is one of the roles of Audit Committee –

Mr. A, statutory auditory of ABC Ltd., is thinking to resign on 7th July, 2020. Is he required to issue an audit report for the quarter April, 2020 to June, 2020?

Obligations of listed entity or material subsidiary on resignation of statutory auditor is:

Detailed reasons of resignation of auditor to be disclosed by listed entity to stock exchange:

Audit Committee is covered under __________ read with _______ of companies (Meetings of board and its Powers) Rules, 2014.

Following shall not constitute an Audit Committee as per Companies Act.