561. Section 227(2) of the Companies Act, requires the auditor to give his report to the members of the company on certain matters. Which of the following is not included in the above?
A. Accounts examined by him
B. Every balance sheet and profit and loss account laid before a general meeting during his
tenure
C. Every document that is a part of or ‘annexed to’ the balance sheet
D. Every document which is attached to the profit and loss account
562. Which of the following report not result in qualification of the auditor’s opinion due to a scope limitation?
A. Restrictions the client imposed
B. Reliance on the report of other auditor
C. Inability to obtain sufficient appropriate evidential matter
D. Inadequacy of accounting records
563. The inventory consists of about one per cent of all assets. The client has imposed restriction on auditor to prohibit observation of stock take. The auditor cannot apply alternate audit procedures.
A. unqualified opinion
B. qualified opinion
C. disclaimer of opinion
D. adverse opinion
564. If in the above question, the inventory consisted of about ten per cent of total assets, other conditions remaining same, the auditor should issue __
A. unqualified opinion
B. qualified opinion
C. disclaimer of opinion
D. adverse opinion
565. Which of the following is not true regarding requirements under section 227(3) (f) of the Companies Act, 1956?
A. The auditor has to satisfy himself whether any of the directors of the company, whether
public or private, are disqualified from being appointed as directors as per section 274(1) (g).
B. Section 274(1) (g) is applicable to appointment of directors both in public and private
companies but reporting is limited to only those directors of a company who are also
directors of a public company
C. The auditor requires every director to submit a written representation in respect of each
public company, of which the is a director, as to whether such company has defaulted in
terms of provisions of sections 274(1) (g)
D. The disqualification should be considered on the date of audit report.
566. The management of a company, to which AS-3. is not applicable, does not include statement of cash flows in its annual report. The auditor should express
A. Unqualified opinion
B. Qualified opinion
C. Adverse opinion
D. Any of these depending upon materiality and pervasiveness and adequacy of disclosure
567. In case the auditor gives a disclaimer of opinion in the audit report which of the following paragraph(s) of a standard unqualified audit report are modified?
A. Scope paragraph
B. Opinion paragraph
C. Scope and opinion paragraphs
D. Introductory, scope and opinion paragraph
568. A departure from recognized accounting principle is disclosed in a note to the financial statements. The auditor should
A. issue a standard unqualified audit report
B. issue a qualified report
C. issue an unqualified report with ‘emphasis of matter’ paragraph
D. disclaim opinion
569. AB & Co, chartered accountant, have been requested by their client XYZ Ltd. not to confirm accounts receivables because of concerns about creasing conflicts with customers over amounts owed. The auditors were satisfied concerning receivables after applying alternative audit procedures AB & Co.’s auditors report likely contained
A. Qualified opinion
B. Disclaimer of opinion
C. Unqualified I opinion with an explanatory paragraph
D. Unqualified opinion
570. Companies exempted from application of CARO, 2003 does not include_
A. a banking company
B. an insurance company
C. a private limited company with paid up capital and reserves not more than fifty five lakh
D. a licensed company