CARO- Part-1

While reporting under clause (i) of Para 3, the auditor has to report on which of the following aspects:

• Benami Properties

• Title Deeds

• Physical Verification

• All of the above

Physical verification of the assets is the responsibility of the ___________

• Auditor

• those charged with governance

• management

• shareholders

For the purpose of reporting under clause (ii)- Inventory, which of the following is correct:

• The auditor is required to check the working capital sanctioned limit and not its utilization

• The auditor is required to check the working capital sanctioned limit and also its utilization

• The sanctioned limit may be less than five crore rupees but due to excess withdrawals/ levy of interest/ temporary overdrawings, the balance may exceed five crore rupees. Such cases are also in scope of reporting under this clause

• The auditor is not required to check in case utilization is less than the working capital sanctioned limit

The Companies (Acceptance of Deposits) Rules, 2014 cover the following main items:

• nature of deposits and persons from whom it can be accepted

• nature of deposits and terms and conditions of acceptance by companies from its members and persons other than its members

• manner and extent of deposit insurance

• NONE OF THE ABOVE

The auditor should obtain the following management representation letters:

• Whether cost records are required to be made and maintained?

• Whether prescribed cost accounts and records are being made and maintained regularly?

• Where there were qualifications/ observations in the cost audit report of the immediately preceding financial year, whether such matters have been addressed in the current year?

• All of the above

The meaning of “undisclosed income” is referred from:

• Benami Transactions (Prohibition) Act, 1988

• The Companies Act, 2013

• The Income Tax Act, 1961

• The Reserve Bank of India Act, 1934

For the purpose of reporting under clause (ix)(b), the auditor should perform the following procedures:

• Obtain signed declaration from the company

• Seek response while obtaining balance confirmation from lender

• Verify CIBIL report of the company and information available in public domain including websites of RBI, banks, credit information companies

• All of the above

Under clause (ix)(c), the auditor is required to report the following:

• Amount diverted

• Purpose for which amount was sanctioned

• Purpose for which the amount was utilized

• All of the above

In case of private placement, maximum number of persons to whom offer/invitation can be made is:

• 50

• 100

• 200

• 250

A company making an offer/invitation on private placement is required to allot its securities within how many days from the date of receipt of application money for such securities:

• 15

• 30

• 45

• 60