SECRETARIAL AUDIT, COMPLIANCE MANAGEMENT AND DUE DILIGENCE

Full Course Practice Test Paper 1

All Question are of 5 Marks Each Unless Stated Otherwise
Total Question : 20 Total Marks : 100
Duration : 1.5 Hours

Q.1 Z Ltd. seeks your opinion on the role of the various levels of management for compliance ownership.
Explain the role.

Q. 2 What is peer review and describe its contents

Q.3 ? XYZ Bank Ltd. has sanctioned a term loan for `5,000 crore to CXT Ltd. The purpose of the loan is to
develop the townships in 5 Smart Cities including Mumbai. The 30% of the loan amount is to be used for
Mumbai only. However, during the verification of the records of the company, it was found that certain
land area in Mumbai is a disputed area where the Hon’ble High Court has granted stay till next hearing.
You are appointed by the Bank as Secretarial Auditor for making a search report. What are the
documents to be inspected by the Secretarial Auditor in the instant case ?

Q4 XYZ Ltd. has not filed Annual return for the financial year 2017-18. Write a note on the consequences
of non-filing of Annual Return by the company in relation to a Director of the company, as per provisions
laid under the Companies Act, 2013.

Q.5 Describe the role of a Company Secretary as an Insolvency Professional.

Q.6 Prepare a checklist of documents required for KYC of Proprietorship & Partnership.

Q.7 You have been engaged as a Practicing Company Secretary by XYZ Limited, an unlisted company
having a turnover of `75 crore, for certification of annual return of the company for the year 2018-19.
The annual return is signed by the Chief Executive Officer of the Company. State the provisions of the
Companies Act, 2013 and the Rules made there under as to signing and certification of annual return. Is
it mandatory to file the annual return if the annual general meeting is not held in a particular year ?

Q.8 Your client wants to setup a unit in Pharmaceuticals sector in the state of Telangana. Describe in
detail about the specific laws applicable for setting up of a unit in the Pharmaceuticals sector.

Q.9 Ramesh Kumar has received the certificate of membership as well as certificate of practice from the
Institute of Company Secretaries of India on 31st March, 2019 and now he wants to become a
Registered Valuer. Give your professional advice on the matter and also explain the qualification &
disqualification of Registered Valuer to Ramesh Kumar.

Q. 10 Explain the procedure for search Report under IPR Laws

Q.11 Draft the ‘confidentiality undertaking’ and ‘arbitration’ clauses of a non-disclosure agreement.

Q. 12 What is Audit Trail and why there is a need of creation of Audit Trails ?

Q.13 Analyse the differences between the following : Fraud and Non-compliance

Q.14 “A Corporate Social Responsibility (CSR) Audit aims at identifying environmental, social or
governance risks faced by the organization and evaluating managerial performance in respect of those”.
Explain the purpose of CSR Audit.

Q.15 X & Co. Practicing Company Secretary, was appointed as Secretarial Auditor of a Company. During
the audit certain irregularities were found. However, before the finalisation of the Report, the Company
Secretary of the Company suggested a communication on the subject. Brief the stages involved for
communication and discussion to finalise the Final Report of Secretarial Auditor.

Q.16 During the Secretarial Audit of the Company, auditors found various reports of expert. Some
reports comprise technical details about the plant and project including assessment. Write the note on
the reliability of the said reports.

Q.17 XYZ Ltd. a public limited company appointed R, a practicing professional, as an Internal Auditor of
the company. During its audit procedure, he came to know some material information of the company
which was revealed, due to incompetency of his audit staff, to the outsiders. The company filed a suit
against him stating that due to his unprofessional and irresponsible behaviour, the company has to bear
a huge loss. Explain the auditor’s responsibility & duties in respect of the information acquired while
performing the audit assignment.

Q.18 Define Internal Audit. Describe core principles of Internal Audit.

Q.19 What is Forensic Audit Report ? Highlight its major contents.

Q. 20 What do you mean by Environment Audit ? Prepare a process chart for conducting Environment
Audit.