Utilizing MCQs is considered an effective method to assess a student’s understanding of a concept. The auditing MCQs are available on GuruMcQs.com and prepared by subject experts, aligning with current trends and practices. These MCQs are particularly beneficial for competitive examinations and tests such as PPSC, FPSC, SPSC, KPPSC, BPSC, and ETEA. They are also valuable for various job positions like Senior Auditor, Junior Auditor, Accountant, Internal Auditors, and External Auditors. Covering topics such as Basic Auditing, Financial Audit, Income Tax Audit, Internal Audit, Operational Auditing, and more, these MCQs offer comprehensive preparation. Additionally, you can find Cost Accounting MCQs with answers on the platform.

21. If the book value of an asset stands at________per cent of the original cost, a company need not provide depreciation on it.

A. two
B. fifteen
C. five
D. ten

22. Which of the following expenses should not be treated as capital expenditure?

A. Expenses paid on installation of a plant.
B. Cost of dismantling a building in case a new building is to be constructed on the land
C. Legal expenses incurred to defend a suit related to title of patent.
D. The fees paid to engineer who constructed the plant.

23. Who is responsible for the appointment of statutory auditor of a limited company ?

A. Directors of the company
B. Members of the company
C. The Central Government
D. All of the above

24. The board of directors shall appoint first auditor of a company

A. With in one month of completion of capital subscription state of the company
B. With in one month of the promotion of the company
C. With in one month of the commencement of the business of the company
D. With in one month of incorporation of the company

25. The term of the auditor ship of first auditor would be from the date of appointment till________?

A. the conclusion of statutory meeting
B. the conclusion of first annual general meeting
C. the conclusion of next annual general meeting
D. the date of removal

26. 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

27. If a casual vacancy in the office of auditor arises by his resignation it should only be filled by the company in a_________?

A. Board meeting
B. extraordinary general meeting
C. General meeting
D. annual general meeting

28. The authority to remove the first auditor before the expiry of term is with__________?

A. the shareholders in a general meeting
B. the shareholders in the first annual General meeting
C. the board of directors
D. the Central Government

29. Who out of the following cannot be appointed as a statutory auditor of the company?

A. Erstwhile director
B. Internal auditor
C. Relative of a director
D. Only (B. and (C.

30. A statutory auditor has a right of access at all times to___________?

A. Books and accounts of a company
B. Books, accounts and documents of the company
C. Books, accounts and vouchers of the company
D. Notices and documents of the company