B.

com Sem-6 Auditing

No. Question Ans . A Ans. B Ans. C Ans. D Ans.
According to sec. 208, the percentage o dividend on capital
1 10% 12% 5% 45% D
should not be more than
The percentage of unwriting commission on shares and For shares 2.5% and For shares 5% and for For shares 2% and for For shares 12% and
2 B
debentures are the following respectively for debentures 5% debentures 2.5 % debentures 3% for debentures 5%
Companies Act does
Can be utilised if articles
Can the securities premium be utilized to convert partly paid not provide
3 No Yes of association of the A
up equity shares in to fully paid up shares as bonus ? anything with
Company Providers
respect to this
After the end of Financial year, within how much time, Final
At anytime before the
4 Accounts of a Company should be presenyted in Anmnual Three Months Six Months None of the above B
end of next financial year
General Meeting ?

5 Minimum time lag required between two bonus issue is : 12 Months 24 Months 36 Months None of the above D

Dividend warrants should be issued to or dividend should

Before the end of
6 be paid to the members within how much time, after the 21 days 42 days 30 days D
respective financial year
dividend is declared ?
As per the requirements of Companies Act, the gap
7 between date of Profit and Loss A/c and the date of Six months Thress months Nine months Four months A
A.G.M at which it is laid, should not exceed:
Unpaid dividend should be transferred to a sepcial
8 unpaid dividend account after days of declaration of Sixty days Fourty two days Thirty days Fourty days C
dividend ?
The surplus realised on forfeiture of shares is transferred General Reserve Capital Reserve Share Premium
9 Profit and Loss Account B
to which account? Account Account Account
The conditions for issue of shares at discount are laid
10 Section 79 Section 78 Section 80 Section 82 A
down in _____ section of The Companies Act.

Recognised stock
To which of the following parties is the auditor expected to Board of Directors Shareholders of the exchange on which
11 Central Government C
address his Report ? of the company Company the shares of the
company are listed
 The report issued to company having no defect in books of
12 Clean Report Interim Report Partial Report Qualified Report A
accounts is known as____.
The Private Companies
Banking and insurance whose share capital and
13 To which companies does the Order of 2003 not apply ? Foreign companies Guarantee company C
companies reserves are more than
one crore.
To which of the following Act is the auditor exoected to
14 1932 Partnership Act 1956 Company Law 1960 Company Law 1913 Company Law B
address his Report ?
To which of the following Parties is the auditor expected to Board of Directors Not addressed to any Shareholders of the
15 Central Governm,ent C
address his certificate ? of the company party company
To which of the following parties is the company auditor Shareholders of Board of Directors of
16 Central Government Company Secretary A
expected to address his Report ? company company
To which of the following act is the company auditor expected 1949 Law and order 2,000 Income Tax
17 1932 Partnership Act 1956 Company Act C
to address his Report Rules act
18 ________ is a statement of collected and considered facts Audit Programme Report Audit statement None of the above B
Maximum % of underwriting commission payable on shares is
19 2% 2.50% 5% 12% C
____.

Total paid up equity share capital of a company is Rs. 25 lakhs.

Current year's profit after depreciation and tax is Rs. 7 lakhs.
20 Rs. 4,50,000 Rs. 2,50,000 Rs. 52,500 Rs. 70,000 C
What will be the minimum amount to be transferred to
reserve, if the recommended rate of dividend is 18%

Unpaid dividend should be transferred to a special unpaid

21 30 42 37 60 A
dividend A/c after _______ days of declaration of dividend

The profit that is to be distributed among shareholders as per

22 Divisible Profit Gross Profit Reserve Profit Capital Profit A
prescribed rate of dividend is called
Dividend warrants should be issued to or dividend should be
23 paid to the members within how much time, after the 21 days 30 days 42 days 45 days B
dividend is declared ?
 Current year profit of a company is Rs. 4,00,000, Calculate the
amount required to be transferred to General Reserve. If the
24 Rs. 54,000 Rs. 30,000 Rs. 20,000 Rs. 1,00,000 C
company decides to declare dividend on share capital at the
rate of 13.5%

The rat of interest not exceed ________ per annum or such

order rate as prescribed by the Central Government by
25 4% 10% 14% 7.50% A
notification in the official u/s Gazette when interest paid out
of capital of 208.
The rate of interest not exceed ________ per annum or such
order rate as prescribed by the Central Government by
26 8% 7.50% 4% 10% C
Notification in the Official Gazette, when interest paid out of
capital of u/s 208
Current year profit of a company is Rs. 6,00,000. Calculate the
amount required to be transferred to general reserve if
27 Rs. 60,000 Rs. 1,00,000 Rs. 30,000 Rs. 45,000 C
company decides to declare dividend on share capital at the of
13.5%

The period of Embezzlement of

Which one of the following is not required to be The nature of Qualifications of
28 investigation to be cash to be C
considered for 'Investigation in case of suspected fraud' ? fraud suspected directors of the company
convered examined
Carry out, in detail,
the valuation of
Which one of the following points is not relevant while Get details regarding
Examine the Examine the securities stock and other
29 conducting an investigation on behalf of a creditor or a bank loan application rejected D
purpose of loan offered assets of the
granting loan ? in the past;
prospective
borrower

Embezzlement of Disqualifications of The period of

Which one of the following is not required to be The nature of fraud
30 cash to be Directors of the investigation to be C
considered for "Investigation in case of suspected fraud"? suspected
examined company covered

Technical details of Accounting system

Which one of the following details is not required to be System of internal Report of the
31 business or adopted by the C
obtained before preparing an audit programme ? check; previous auditor
institution competitors