Page 123 - CA Inter MCQ Book

CA RAVI TAORI CA INTER AUDIT MCQs
IV. "Mr. Y resorted to Defalcation of Cash by
(a). Inflating Cash Payments
(b). Suppressing Cash Receipts
(c). Casting wrong totals in Cash Book
(d). Stealing Cash
V. "CA Arun found significant unexplained items on many reconciliations. This is an example of
possibility of Fraud due to
(a). Discrepancies in accounting Records
(b). Problematic relationship between auditor & management
(c). Conflicting or Missing Evidence
(d). Other

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"As per Section 143(5) of the Companies Act, the power to appoint auditor of Government Company or
any other company owned or controlled, directly or indirectly, by the Central Government, or by any
State Government/s rests with Comptroller & Auditor General of India.
Sigma & Associates ( a practicing Chartered Accountant firm) having good practice spread across regions,
industries now applied to Comptroller & Auditor General of India for allotment of audits of Government
departments, Local bodies, Co-operative societies etc.

The firm is also interested in taking up LLP audits and wants to know peculiarities related to LLP audits
in accordance with LLP Rules 2009.
Two senior Chartered Accountants are entrusted for this division within Sigma & Associates. Both of
them are seasoned and highly experienced Chartered Accountants.
Based on below queries/cases, you are required to answer on specific cases which require special
attention while conducting audit of Government departments, Local bodies, Co-operative societies etc."
I. "Public money should not be utilized for the benefit of a particular person or a section of the
community or for the person who is sanctioning the expenditure. These are the principles covered
in
(a). Performance Audit
(b). Audit against rules and orders
(c). Propriety Audit
(d). Efficiency Audit"
II. "In case of co- operative societies, bad debts and irrecoverable losses before being written off
against Bad Debt funds, Reserve fund etc. should be certified as bad debts or irrecoverable losses
by the
(a). auditor where the law so requires
(b). the managing committee of the society , when law is silent as to certification by auditor
(c). the managing committee of the society , irrespective of the provisions of the law
(d). Both (a) and (b)"
III. "As per Rule 24 of LLP Rules, 2009, Statement of Account and Solvency shall be filed in
____________ with the ____________, within a period of _________________.
(a). Form 5, SEBI, 30 days from the end of 3 months of the financial year to which the Statement of
Account and Solvency relates.
(b). Form 5, Registrar, 30 days from the end of 6 months of the financial year to which the Statement
of Account and Solvency relates.
(c). Form 8, SEBI, 30 days from the end of 3 months of the financial year to which the Statement of
Account and Solvency relates.
(d). Form 8, Registrar, 30 days from the end of 6 months of the financial year to which the Statement
of Account and Solvency relates"
IV. "LLP, whose turnover does not exceed ` ________ or whose contribution does not exceed `
_________, is not required to get its accounts audited.
(a). 40 Lakhs, 25 Lakhs
(b). 50 Lakhs, 25 Lakhs
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