CA Intermediate Paper 5

Special Features of Audit of Different Entities MCQ

Chapter 9 • 18 Questions from ICAI Study Material

Questions

18

Est. Time

27 min

Source

ICAI Book

Sample Questions: Special Features of Audit of Different Entities

Preview 4 of 18 questions from Chapter 9

1. The audit of municipal corporation of a large metro city is in progress. Which of the following is not likely an objective of such as audit?

A) To report on the adherence to legal and administrative requirements
B) To report on whether value is being fully received for money spent
C) To report on the weakness of systems of financial control
D) To provide better civic amenities to residents of metro city (2) “Save Democracy” is an NGO working in cause of promoting democracy and democratic institutions in many countries including India. Its Indian counterpart has received funds from a renowned “Flower Trust” of US. As auditor of NGO, which of the following laws/orders would be relevant to you in context of above information? (a) Income Tax Act, 1961 (b) Foreign Contribution Regulation Act, 2010 (c) Companies Act, 2013 (d) Orders issued by Ministry of Social Justice and Empowerment ✓

2. The appointment of first auditor of a multi-state cooperative society is made by: -

A) Central Registrar
B) Board of society ✓
C) Members of society
D) Central Government

3. Consider following revenue sources of Union Government. (P) Revenues from direct taxes (Q) Revenues from Goods and Services Tax (R) Revenues from Custom Duties (S) Revenues from Excise Duties Out of P, Q, R and S, which of the following flow to “Consolidated Fund of India”?

A) P, Q and R
B) P, Q and S
C) P and Q
D) P, Q, R and S ✓
Correct/Incorrect

4. Article 150 of the Constitution provides that the accounts of the Union and of the States shall be kept in such form as the Finance Minister may on the advice of the C&AG prescribe.

Correct
Incorrect ✓

Explanation: - Article 150 of the Constitution provides that the accounts of the Union and of the States shall be kept in such form as the President may on the advice of the C&AG prescribe.