Audit of company (unit 4)

What is the main objective of the audit of capital issue?

• To comply with SEBI guidelines

• To distribute share premium as dividend

• To record the actual receipt of cash/assets through issue

• To issue capital without any limit

Which documents need to be examined during the audit of shares issued for cash?

• Prospectus, Memorandum of Association, Articles of Association

• Application stage, Allotment stage, Calls stage

• General audit, Special audit, Joint audit

• Audit report, Branch audit, Auditor qualifications

What are the audit steps for shares issued for cash?

• Review general audit procedures, Check special audit requirements

• Examine prospectus, Verify dividend authorization

• Verify compliance with SEBI guidelines, Check shareholder rights

• Examine original applications, Check entries in application, allotment and cash book

When should allotment begin during the application stage?

• At the end of the financial year

• After shareholder approval

• After minimum subscription is reached

• Before minimum subscription is reached

What is the purpose of an audit of shares at premium?

• To issue shares below market value

• To write off preliminary expenses, commission

• To comply with SEBI guidelines

• To distribute share premium as dividend

What is a branch audit?

• An examination of the financial records of a specific branch

• An audit conducted by multiple auditors

• A focused examination for a specific purpose

• An audit of shares at premium

What is the main purpose of an audit report under the Companies Act?

• To distribute dividends to shareholders

• To appoint new auditors

• To provide recommendations for improvement

• To report on the financial statements

Which among the following is clean opinion?

• Disclaimer opinion

• Adverse opinion

• Unqualified opinion

• Qualified opinion

What is a special audit?

• A joint audit conducted by multiple auditors

• An examination of financial records of a specific branch

• A focused examination for a specific purpose

• An audit of shares at premium

What is the purpose of an audit of shares transfer?

• To write off preliminary expenses, commission

• To issue shares below market value

• To comply with SEBI guidelines

• To understand the transfer of shares between shareholders