551. Which of the following statements is not correct regarding removal of first auditor before expiry of the term?
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 provisions for such removal are contained in section 224(7)

552. The principal auditor, as per clarification issued by the ICAI, does not have any right to
A. Inspect working papers of the branch auditor
B. Visit branches
C. Seek information necessary for audit purposes
D. Incorporate the branch audit report in his audit report

553. Under which of the following section auditor has a duty to enquire into six specified matters and report by exception?
A. Section 227(4A)
B. Section 227 (IA)
C. Section 227 (2)
D. Section 227(3)

554. The auditor has to enquire, under section 227 (IA) into different aspects, related to shares allotted for cash for the purpose of auditor include
A. Shares against whose allotment cash has actually been received
B. Shares allotted for consideration other than cash
C. Shares allotted against a debt payable
D. All of them

555. Right to visit branches has been given to the auditor under which section?
A. Section 222(3)
B. Section 228(2)
C. Section 228(4)
D. Section 228(3)

556. Which of the following statements with regard to rules regarding exemption from branch audit is not true?
A. A branch office of a company can be granted exemption on the basis of quantum of activity criterion
B. If a satisfactory arrangement of scrutiny check of the books of account of a branch office of a manufacturing company has been made, it can be exempted form branch audit
C. Cost consideration should be considered as an important factor/ground for exemption from branch audit
D. The auditor should state in his audit report that branch office is exempted by virtue of quantum of activity or any other basis

557. Auditor of a ……company does not have right to visit foreign branches of the company
A. Unlimited liability
B. Manufacturing
C. Banking
D. Non-profit making

558. Special audit is conducted at the order of the Central Government. Which section gives such powers?
A. Section 233(A)
B. Section 233A
C. Section 242(A)
D. Section 242A

559. If any director is disqualified from being appointed under section 274(1) (g), the auditor should mention this fact in his audit report. For this purpose, how does he determine their eligibility :
A. He obtains a representation from each director
B. He obtains a management representation
C. He enquiries from Registrar of Companies
D. Any one of the above

560. As per the ‘Statement on Qualification in Auditor’s Report’s issued by the ICAI, the auditor, Under section 227(3) has to gave a statement of fact on_
A. proper books of account
B. accounting standards
C.cess payable under section 441A
D. None of the above

NOTE
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