MCQs BSNL JAO Questions
1. Auditor should see that the return of allotment has been sent to Registrar within
(a) 1 month
(b) 2 months
(c) 3 months
(d) 40 days
Ans a
2. Dividend can be paid out of
(a) Capital profits
(b) Capital receipts
(c) Revenue receipts
(d) None of these
Ans a
3. A company auditor should see that the dividend should be paid.
(a) After charging depreciation.
(b) Without charging depreciation.
(c) Out of capital
(d) None of these.
Ans a
4. In his report, the auditor gives his
(a) Judgement
(b) Opinion
(c) Guarantee to correctness of accounts.
(d) True state of affairs.
Ans b
5. The company has earned profits on sale of its machinery and wants to pay dividend out of it.As auditor, you should
(a) Allow it
(b) Not allow it.
(c) Allow it with certain conditions.
(d) None of these.
Ans c
6. The auditor did not care to check adequacy of ^provision for Bad and Doubtful Debts. Whether he can be held.
(a) Liable for it.
(b) Not liable for it.
(c) Liable criminally for it.
(d) None of these
Ans a
7. The auditor resorted to test checking and, with the result he could not disclose certain frauds whether he can be held
(a) Liable for it
(b) Not liable for it
(c) Liable criminally for it
(d) None of these
Ans a
8. During a company audit, the management argues with the auditor that machinery has been very well maintained and is as good as new Hence there is no need for charging depreciation on it Whether the auditor should
(a) Accept it
(b) ignore it
(c) Reject it
(d) None of these
Ans c
9. Auditor is liable for
(a) Not verifying petty cash
(b) Not determining stock
(c) Not checking accounts property.
(d) All of these.
Ans d
10. An auditor can be held liable under C.A. Act, 1949 for
(a) Negligence.
(b) Criminal offence
(c) Professional misconduct.
(d) Breach of contract.
Ans c