701.Capital profit imply profit earned
A.Through business transaction
B.From capital
C.From sale of fixed assets
D.From sale of current assets

702.Capital profits
A.Can be paid by way of dividends
B.Cannot paid by way of dividends
C.Can be paid by way of dividend under certain conditions
D.None of the above

703.If there is capital loss, the auditor should
A.Not allow payment of dividend
B.Allow payment of dividends
C.Allow payment of dividends after making such losses good
D.None of the above

704.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 the above

705.In his report, the auditor gives his
A.Judgment
B.Opinion
C.Guarantee to correctness of accounts
D.True state of affairs

706.Civil liability of an auditor implies liability for
A.Misappropriation of cash
B.Misappropriation of goods
C. Fraud
D.Misfeasance

707.An auditor can be held liable under companies Act 1949 for
A.Negligence
B.Criminal offence
C.Professional misconduct
D.Breach of contract

708.Investigation of books of accounts and records is :
A.Not legally compulsory
B.Compulsory
C.Compulsory as per companies act
D.Compulsory as Income Tax Act

709.Investigation is carries on behalf of
A.Manager
B.Employee
C.Client
D.On behalf of owner and third parties

710.Examination of accounting records undertaken for a special purpose is called
A.Auditing
B.Internal check
C.Investigation
D. Internal control

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