541. Which of the following sections deal with qualifications 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) & Sec.224

542. Which of the following statement is not true?
A. A partnership firm can be appointed as a statutory auditor of limited company
B. Appointment can be made in the name of the firm
C. Majority of the partners should be practicing in India
D. All partners should be chartered accountants

543. As per the requirements of section 226(3) and 226(4) a person is disqualified from being appointed as a statutory auditor if he holds
A. Equity shares or debentures of the company
B. Equity shares carrying voting of the company
C. Shares carrying voting rights of the company
D. Security carrying voting rights of the company

544. In case the directions fail to appoint first auditor (s), 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

545. Life Insurance Corporation of India holds twenty five percent of subscribed capital of XYZ Ltd. The appointment of statutory auditor in XYZ Ltd. Would be by__
A. ordinary resolution
B. special resolution
C. (a) or (b)
D. none of the above

546. ICICI prudential, a life insurance company, holds thirty-two percent of subscribed share capital of Delta Ltd. The statutory auditor of Delta Ltd. would be appointed by__
A. ordinary resolution
B. Special resolution
C. either of the above
D. none

547. For the purposes of section 224(IB) the number of partners of a firm which shall be taken into account would be as on the date of _
A. completion of audit
B. auditor’s report
C. acceptance of audit
D. Starting of audit work

548. Which of the following is counted for the purposes of section 224(IB) the number of partners of a firm which shall be taken into account would be as on the data of ___
A. Joint audit
B. Audit to non-profit companies
C. Audit of unlimited companies
D. All of the above
E. (a) and (b) only

549. Mr. Narayan, a Charted Accountant, has nineteen audits, Out of following audits which audits should he accept to ensure he doesn’t violate provisions of section 224(IB) __
A. Audit of Zeba Ltd. a private company
B. Audit of branch of Pointec Ltd. a foreign company
C. Audit of two branches of Virtue Ltd. an Indian company
D. All of them

550. Which audit out of the following would not be regarded as one audit for the purposes of section 224(IB)?
A. Audit of one branch each of two different companies
B. Joint audit
C. Audit head office & branches
D. Audit of one or more branches of a company

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