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Very Important For New Course CA Final Students

MCQ and its answer.

______involves expression of positive opinion , which may differ from person to person.
public poll

a)Audit report

b)Certificate

c)Review report

d)None of the above



Answer for Audit MCQ is
a) Audit Report

Explanation

In an audit report , the auditor is required to express an opinion whether the financial statement shows true and fair view regarding the state of affairs the company.It is a kind of positive assurance. In Review report on the other hand, has a wording that auditor did not receive any information which
suggests material misstatement exist in financial statements .It is kind of negative assurance.

So it depends on type of wordings used while giving opinon whether it is positive or negative assurance. Both such reports can be unmodified, qualified, adverse or discliamer.

Dont consider positive assurance as unmodified / clean opinion.

CA Final AUDIT Mock Test Paper with suggested answers & Stepwise marking available @ auditguru.in/downloads

Auditor is not required to comment in CARO report on appropriate utilisation of funds, with respect to:-
public poll

b. Short term loans – 139
👍👍👍👍👍👍👍 89%

a. Long term loans – 7
▫️ 4%

d. Further public offer – 6
▫️ 4%

c. Initial public offer – 4
▫️ 3%

👥 156 people voted so far.

Important A Categary Topics https://www.youtube.com/watch?v=rwrrxRMaczg

Auditor is not required to comment in CARO report on appropriate utilisation of funds, with respect to:-
a. Long term loans

b. Short term loans

c. Initial public offer

d. Further public offer

Answer: b. Short term loans

Explanation: Clause IX of CARO asks auditor to comment on utlisation of funds for the purpose for whcih it is raised in case of Term Loans , Intial Public Offer, Further Public Offer. Further terms loans usually means loans with tenure beyond 36 months as per gudiance note on CARO. So short term loans wont be considered for this clause.

Auditor detected 5 different frauds of 25 lakhs each by employees in the company in span of 1 month. Which reporting he should apply under section 143(12) of Companies Act , 2013, below Rs1 crore or above Rs 1 crore?
public poll

B. Above Rs 1 crore, as total frauds by employees is Rs 1.25 crore – 96
👍👍👍👍👍👍👍 53%

C. Below Rs 1 crore, as we have to see amount of individual fraud and not total amount of frauds – 52
👍👍👍👍 29%

A. Below Rs 1 crore, as span is just 1 month – 30
👍👍 17%

D. Above Rs 1 crore, as amount is big and truth should reach government – 3
▫️ 2%

👥 181 people voted so far.

Answer to MCQ
C. Below Rs 1 crore, as we have to see amount of individual fraud and not total amount of frauds

Explanation
As per wordings and guidance notes is absolutely clear that, we have to see fraud individually and compare with limit of 1 crore. Further aggregation is not possible as you have to take steps day by day after each fraud.

Can board of directors of company appoint any person to inspect books of accounts of subsidiary ?
public poll

A. Yes, it is their right. – 107
👍👍👍👍👍👍👍 66%

B. No, they can appoint only directors for this. – 53
👍👍👍 33%

C. Yes, they cannot perform their functions without it. – 2
▫️ 1%

D. No, they cannot impose such things on subsidairy.
▫️ 0%

👥 162 people voted so far.

Answer to MCQ

A. Yes, it is their right.

Sec 128 of Company's Act 2013 clearly specifies, BOD can authorise "any person" to go and inspect books of accounts of subsidiary company.