421. Which of the following best describes the primary purpose of audit programmed preparation?
A. To detect errors or fraud.
B. To comply with GAAP.
C. To gather sufficient appropriate evidence.
D. To assess audit risk.
422. The auditor permanent working paper file should not normally, include ________
A. extracts from clients bank statements.
B. past years financial statements.
C. attorney letters.
D. debt agreements.
423. Which of the following sections deals with qualification of the auditor?
A. Section 226(1) and Section 226(2).
B. Section 224(1) and Section 224(2).
C. Section 226(3) and Section 226(4).
D. Section 224(3) and Section 224(4).
424. In case the directions fail to appoint first auditors, the shareholders shall appoint them at _______ by passing a resolution.
A. a general meeting.
B. first annual general meeting.
C. statutory meeting.
D. annual general meeting.
425. Which of the following statement is not true regarding appointment of statutory auditor by the central government?
A. Such powers have been conferred upon it by section 224(3).
B. If a company fails to appoint an auditor at a general meeting.
C. If an auditor refuses to accept appointment, the powers of the central government can be exercised.
D. Lay man can be appointed as an auditor.
426. The auditor of a government company is appointed by the C & AG. His remuneration is fixed by_____________.
A. the C & AG.
B. the shareholders.
C. the shareholders at an annual general meeting.
D. the board of directors.
427. The section which contains provisions regarding remuneration of the auditor is _____.
A. Section 224(9).
B. Section 224(7).
C. Section 224(8).
D. Section 224(6).
428. Which of the following statement is not correct regarding removal of first auditor before expiry of theterm?
A. He is removed at a general meeting.
B. The shareholders are authorized to do so.
C. The approval of the central government is required for such removal.
D. The provision for such removal are contained in section 224(7).
429. The retiring auditor does not have a right to _________.
A. make written representations.
B. get his representation circulated.
C. be heard at the meeting.
D. speak as a member of the company.
430. Auditor of a _______ company does not have right to visit foreign branches of the company.
A. unlimited liability.
D. non-profit making.