CA Final Audit – Audit Commitee and Corporate Governance MCQs Set II

Following class of unlisted public companies shall not be covered to constitute Audit committee:

Section 139 (11) provides that where a company is required to constitute an Audit Committee under section 177, all appointments including filing of casual vacancy of an auditor, shall be made after taking into account the recommendation of such committee

As per section 177 of Companies Act, 2013, an audit committee shall have:-

Every audit committee of a government company shall act in accordance with the terms of reference specified by the board in writing on the:

Mr X, statutory auditor of ABC Ltd. and Mr A, a key managerial personnel of ABC Ltd, were invited in the meetings of Audit Committee. Which of the following is correct?
[A] Mr X shall have right to be heard in the meeting while considering Auditor’s report
[B] Mr A shall have right to be heard.
[C] Mr X and Mr A shall not have right to vote.
[D] Mr X and Mr A shall have right to vote.

Every listed company or prescribed class of companies shall establish vigil mechanism for ______ to report genuine concerns in prescribed manner

The vigil mechanism shall provide for:

The details of establishment of vigil mechanism shall be disclosed by the company in

Approval of subsequent modification of transaction of the company with related parties in case of amount not exceeding Rs. 1 cr, transaction entered into by a director or officer of co., without obtaining Audit Committee approval or being ratified from it within 3 months from date of transaction.

Audit Committee to call for the auditors’ comments about:

Audit Committee shall not necessarily review

Auditor should review Management Discussion and Analysis report forms part of annual report to the shareholders in ________

Auditor should ascertain from ______ whether Audit committee has reviewed the necessary information

The auditor should ascertain that information reviewed by Audit Committee is consistent with the reporting in the financial statements including those drawn by giving segment wise breakup for compliance with:

The constitution of Audit Committee underlines:

________ stipulates that a representative of the statutory auditor, when required, shall be invited to the meetings of Audit Committee.

The role to drive corporate governance is of:

The certificate from the auditor as regarding compliance with the requirements of corporate governance is neither an assurance as to the future viability of company, nor the efficiency or effectiveness with which management has conducted the affairs of company.

While conducting verification of compliances with the requirements of corporate governance as stipulated in LODR Regulations, the auditor shall comply with:

In accordance with_____, auditor should document matters, important in providing evidence to support the certificate of factual findings.

Management Representations to be obtained by auditor in accordance with _____

Board of Directors of ______ shall have at least one independent women director.

While verifying matters regarding composition on Board, auditor to ascertain that, throughout the reporting period,
(A)    BOD comprises an optimum combination of executive and non-executive directors
(B)    At least one women director
(C)    Not less than 50% of BOD comprising of non-executive directors.
(D)   No listed entity appoints a person or continue the directorship of a person as an NED, who has attained the age of 75 years without a special resolution and an explanatory statement.Choose the correct option.

A person shall not be a director in more than _____ listed entities.

Maximum holdings as an independent director:

Any person serving as a whole-time director or a managing director in any listed entity, shall serve as an independent director in maximum _____.

The count for the number of listed entities on which a person is a director / independent director only shall be those whose equity shares are listed on a stock exchange.

In order to verify whether a director is an executive director or not, ____ should be verified.

Where chairperson of the board is a non-executive director, _______of minimum should comprise of independent director

Where chairperson is an executive, at least _____ of directors should comprise of independent directors.

Where a regular non-executive chairperson is a promoter or related to a person occupying management positions at the board level or one level below board level, ____of the minimum directors should be independent directors.

The fraction in the number of one third or one half, should be _______

Board of Directors of _______ shall comprise not less than 6 directors.

The chairperson of the board of top 500 listed entities, should be ______

Above provision is applicable to listed entities, which do not have any identifiable promoter, as per the shareholding pattern, filed with stock exchange.

Quorum of top 2000 listed entities shall be one-third of total strength or three directors, whichever is higher, including at least 1 Independent Director.

Which all type of participation of directors in meetings shall be counted in quorum _______

Without presence of non-independent directors and members, Independent Directors to hold ______ meeting at least.

A director to be a member in maximum _____ committees

A director to be a chairperson in maximum _____ committees.