CA Final Audit – Chapter 5 – Company Audit – Set I

As per Section 139(6), the first auditor of a company, other than a Government company, shall be appointed by the which of the following?

the first auditor of a company, other than a Government company, shall be appointed within how many days from the date of registration.

In the case of failure of the Board to appoint the auditor, the ___ of the company shall within __days at an general meeting appoint the auditor.

The First auditor shall hold office till the ________

Managing Director of PQR Ltd. wants to appoint Shri Ganpati, a practicing Chartered Accountant, as first auditor of the company. Comment on the proposed action of the Managing Director.

Section 139(7) provides that in the case of a Government company the first auditor shall be appointed by the _________

Section 139(7) provides that in the case of a Government company the first auditor shall be appointed within how many days from the date of
registration of the company.

In case the Comptroller and Auditor-General of India does not appoint such auditor within the above said period, the _____ of the company shall appoint such auditor within the next __ days

In the case of failure of the Board to appoint first auditor of a government company within next 30 days, it shall inform the _____ of the company who shall appoint such auditor within ____ days at an general meeting

The first auditor of Healthy Wealthy Ltd., a Government company, was appointed by the Board of Directors. Choose the correct option.

Within how many days the auditor is required to intimate ROC about his appointment?

Any casual vacancy, in the case of a company other than a company whose accounts are subject to audit by an auditor appointed by the Comptroller and Auditor-General of India, be filled by ___________ and in how many days?

Any casual vacancy, In the case of a company whose accounts are subject to audit by an auditor appointed by the Comptroller and Auditor-General of India, be filled by the _____________.

The auditor who has resigned from the company shall file within a period of __days from the date of resignation, a statement in the prescribed Form ____

In case of failure of the auditor to report about his resignation he shall be liable to a penalty which shall not be less than ______

Mr Ram who has been appointed by the members suddenly meets a plane crash and died. The casual vacancy shall be filled by which of the following?

The subsequent auditor of a Government Company is appointed by

A company ABC Ltd whose shareholding pattern is as follows; 20 percent shareholding by Central Government, 20 percent by State Government, 20 percent by Government Company. Who shall appoint the first auditor?

A company ABC Ltd whose shareholding pattern is as follows; 30 percent shareholding by Central Government, 30 percent by State Government. The auditor of the same is appointed by C&AG. Subsequently he is disqualified. The vacancy is filled by?

“Mr. Avi”, a practicing Chartered Accountant, is holding securities of
“XYZ Ltd.” having face value of Rs. 990/-. Whether Mr. Avi is qualified for appointment as an Auditor of “XYZ Ltd.”?

“Mr. PK” is a practicing Chartered Accountant. “Mr. Qurashi”, the relative of “Mr. PK”, is holding securities of “ABC Ltd.” having face value of Rs. 99,000/-. Whether “Mr. PK” is Qualified for being appointed as an auditor of “ABC Ltd.”?

“M/s Bhavin & Co.” is an Audit Firm having partners “Mr. Bala” and “Mr. Chandu”. “Mr. A” the relative of “Mr. Chandu”, is holding securities of “AMD Ltd.” having face value of Rs. 1,00,100/-. Whether “M/s Bhavin & Co.” is qualified for being appointed as an auditor of “AMD Ltd.”?

M/s Rajamohan & Co. is an audit firm having partners CA. Raja and CA. Mohan. The firm has been offered the appointment as an auditor of Inn Ltd. for the Financial Year 2019-20. Mr. Bee, the relative of CA. Raja, is holding 8,000 shares (face value of Rs. 10 each) in Inn Ltd. having market value of Rs. 1,60,000. Whether M/s Rajamohan & Co. is disqualified to be appointed as auditors of Inn Ltd.?

Mr Ram the auditor of the company (other than government company) submitted his resignation. He is required to intimate which of the following?

Mr Ram the auditor of the company submitted his resignation. He is required to intimate to which of the following?

The company proposes to remove Mr. Shyam, the Auditor before the expiry of term. What is the procedure to be followed?

Which of the services shall not be rendered by the auditor under section 144?

CA. P is providing the services of Design and implementation of financial information system to C Ltd. Later on, he was also offered to be appointed as an auditor of the company for the current financial year. Advise.

Mr. Ajay, a Chartered Accountant has been appointed as an auditor of Bharat Ltd. in the Annual General Meeting of the company held in September, 2022. Subsequently in February, 2023, he joined Mr. Bajaj, another Chartered Accountant, who is the Manager Finance of Bharat Ltd., as partner.
Choose the correct option.

While determining the applicability of rotation of auditor’s, the amount of paid up share capital for private company shall be taken as?

While determining the applicability of rotation of auditor’s , the amount of paid up share capital for unlisted public companies shall be taken as?

While determining the applicability of rotation of auditor’s , the amount of public borrowings from financial institutions, banks or public deposits for companies shall be taken as?

Mishra Ltd. is a private limited Company, having paid up share capital of
rupees 48 crore but having public borrowing from nationalized banks and
financial institutions of rupees 42 crore. Is rotation of Auditor applicable?

Mr. Ram, the auditor of the company has been removed by the Tribunal on the grounds of fraud. Which of the following implication is correct?

Rahul’s grandfather holds security of Rs 10 lakh face value in ABC Ltd. Which of the following statement is correct?

An individual auditor who has completed his term shall not be eligible for re-appointment as auditor in the same company for how many years from the completion of his term

Mishra Ltd. is a limited Company, having paid up share capital of
Rs. 15 crore. Is constitution of Audit committee mandatory for the same?

Mishra Ltd. is a public limited Companyhaving public borrowing from nationalized banks and financial institutions of rupees 50 crore. Is constitution of Audit committee mandatory?

The application to the Central Government for removal of auditor shall be made in which form

The application for Removal of Auditor before Expiry of Term shall be made to the Central Government within how many days of the resolution.

The company shall hold the general meeting within ______ of receipt of approval of the Central Government for passing the special resolution for removal of Auditor.

An auditor may be appointed in maximum of how many companies.

The limit of twenty companies for appointment of Auditor does not include

“PQRST & Co.” is an Audit Firm having partners “Mr. P”, “Mr. Q”, “Mr. R”, “Mr. S” and “Mr. T”, Chartered Accountants. They are holding appointment as an Auditor in 4, 5, 6, 10 and 15 Companies respectively. Provide the maximum number of Audits remaining in the name of “PQRST & Co.”

“PQRST & Co.” is an Audit Firm having partners “Mr. P”, “Mr. Q”, “Mr. R”, “Mr. S” and “Mr. T”, Chartered Accountants. They are holding appointment as an Auditor in 4, 5, 6, 10 and 15 Companies respectively. Provide the maximum number of Audits remaining in the name of individual partners i.e. “Mr. P”, “Mr. Q”, Mr. R, Mr. S and Mr. T respectively

How many number of tax audit assignments an auditor, as an individual or as a partner of a firm, can accept?

Rahul purchases goods of Rs 7,00,000 on credit. Subsequently he gets appointed as an auditor of ABC Ltd .However, before getting appointed as auditor he pays off all his dues. Which of the following statement is correct?

Singha Enterprise (CA Firm) has a business relationship with ABC Ltd. For which of the following firms Singha Enterprise are disqualified to be appointed as auditor?

“ABC and Company” are statuary auditors of ABC Ltd. Subsequently they started providing actuarial services to the company. Which of the following statement is correct?

The remuneration of auditors of government company is fixed by the

The auditor has the right to access the records of which company?

Which of the following are to be included mandatorily in the audit report?

Who is empowered to conduct supplementary and test audit of Government Companies?

The Standards of Auditing shall be prescribed by

The Comptroller and Auditor-General of India shall within ___ days from the date of receipt of the audit report have a right to supplementary audit.

Which of the following is the duty of Auditor to Inquire?