Who is responsible for the appointment of statutory auditor of a limited company ?
1. Directors of the company
2. Members of the company
3. The Central Government
4. All of the above
2. Which of the following sections deal with qualifications of the auditor ?
1. Section 226 (1) and section 226(2)
2. Section 224 (1) and section 224 (2)
3. Section 226 (3) and section 226(4)
4. Section 224 (3) & 224
3. Which of the following statement is not true?
1. A partnership firm can be appointed as a statutory auditor of limited company
2. Appointment can be made in the name of the firm
3. Majority of the partners should be practicing in India
4. All partners should be chartered accountants
4. 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
1. Equity shares or debentures of the company
2. Equity shares carrying voting of the company
3. Shares carrying voting rights of the company
4. Security carrying voting rights of the company
5. The board of directors shall appoint first auditor of a company
1. With in one month of completion of capital subscription state of the company
2. With in one month of the promotion of the company
3. With in one month of the commencement of the business of the company
4. With in one month of incorporation of the company
6. The term of the auditor ship of first auditor would be from the date of appointment till
1. the conclusion of statutory meeting
2. the conclusion of first annual general meeting
3. the conclusion of next annual general meeting
4. the date of removal
7. In case the directions fail to appoint first auditor (s), the shareholders shall appoint them at…..by passing a
resolution
1. a general meeting
2. first annual general meeting
3. statutory meeting
4. annual general meeting
8. Life Insurance Corporation of India holds twenty five percent of subscribed capital of XYZ Ltd. The
appointment of statutory auditor in XYZ Would be by
1. ordinary resolution
2. special resolution
3. (1) or (2)
4. none of the above
9. ICICI prudential, a life insurance company, holds thirtytwo percent of subscribed share capital of Delta Ltd.
The statutory auditor of Delta Ltd. would be appointed by
1. ordinary resolution
2. Special resolution
3. either of the above
4. none
10. Which of the following statement is not true regarding appointment of statutory auditor by the Central
Government?
1. Such powers have been conferred upon it by section 224(3)
2. If a company fails to appoint an auditor at a general meeting
3. If an auditor refuses to accept appointment, the powers of the Central Government can be
4. None of the above
11. If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in
a……..
1. Board meeting
2. extraordinary general meeting
3. General meeting
4. annual general meeting
12. 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 _
1. completion of audit
2. auditor’s report
3. acceptance of audit
4. Starting of audit work
13. 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
1. Joint audit
2. Audit to nonprofit companies
3. Audit of unlimited companies
4. All of the above
5. (1) and (2) only