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WorksheetsCost & Management Audit MCQs 3
Total questions: 30
Worksheet time: 38mins
Cost audit, as mentioned u/s 148(2), shall be carried by Cost Accountant who shall be appointed by Board of Directors of the company within___________ days from commencement of every Financial Year.
90 Days
150 Days
180 Days
190 Days
Cost accountant term is defined under Rule__________ of the rules which means a cost accountant in practice.
2(a) & 2(e)
2(a) & 2(d)
2(b) & 2(c)
2(b) & 2(a)
Cost accountant in practice means a cost accountant u/s 2(1)(b) of the
Charted Accountant Act 1969
Cost and works accountant act, 1959
Cost Accounting Act 1955
Indian Audit Act 1979
Cost Accountant in practice includes
An individual
A firm
Limited Liability Partnership
A,B only
A,B and C
In appointment of cost auditor, prior consent and certificate to be obtained from
Cost Auditor
Cost Accountant in Practice
Cost Accountant
Board of Directors
Cost auditor may be removed from his office before the expiry of his term through a
will of auditor
Decisions of shareholders
board resolution
Director's advice
Auditor may also resign from his office before the expiry of his term
True
False
If any causal vacancy arises in office of a cost auditor whether due to resignation or death or removal, then it shall be filled by the Board of directors within________days of such vacancy.
90
30
15
45
Auditor has a right of access at all times to the books of accounts and vouchers of the company, whether kept at the head office of the company or elsewhere.
True
False
It depends
Auditor has given a right to require and receive from the officers of the company such information and explanations as he may think necessary for the successful performance of his duties as a cost auditor of a company.
True
False
Only in certain situations
A right is given to cost auditor to visit branch offices and factories of a company, and to receive proper returns therefrom as may be necessary for the conduct of his cost audit.
True
False
Only in Certain situations
A right is given to receive such cost accounting records, cost statements and other books and papers as would be necessary for cost audit within 90 days of the financial year of the company.
True
False
A cost auditor can seek and enjoy assistance and facilities from the company so that he can successfully complete his audit.
True
False
Auditor has right to receive remuneration from the company for his function as a cost auditor.
True
False
An auditor can attend a AGM also as per his rights.
Yes
No
Sometimes
Having technical and legal advice whenever necessary in connection with auditor's work of cost audit.
is good option
is a right
is a advice
is a request
Signing and sending a report of audit to company and central government is a task of
Company itself
Cost Accountant
Cost Auditors
Directors
Auditors should submit their Cost Audit Report to the Central Government within _________ days from the end of the company’s financial year to which such report relates, and a copy of the said report to the company.
90
120
150
180
According to you what should be included in audit report?
Which is not true for contents in audit report?
He has obtained all the information and explanations relating to the cost accounts which to the best of his knowledge and belief were necessary for the purposes of the cost audit.
Proper cost accounting records as required under the relevant Cost Accounting (Records) Rules have been kept by the company.
He should also qualify his report to the extent it differs, where he is not satisfied with any of the provisions stated above.
He has clearly stated his all the expenditures during the audit and will include in its remuneration.
A professional accountant should be straightforward and honest in all professional and business relationships. it is known as
Integrity
Honesty
Hard Working
Confidence
A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments. It is known as
Integity
Objectivity
Competent
Honesty
A professional accountant has a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation, and techniques. It is known as
Integity
Objectivity
Professional Competence and Due Care
Up gradation
Information acquired as a result of professional and business relationships should not be used for the personal advantage of the professional accountant or third parties. It is known as
Integrity
Objectivity
Confidentiality
Professional Competence
A accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession. It is known as
Honesty
Knowledge
Up gradation
Professional Behavior
How many schedules are there to included professional misconduct?
1
2
3
4
Pays or agrees to pay/accepts or agrees to accept any share, commission or brokerage or profits of his professional business to any person other than a person in his Partnership is aceeptable.
True
False
It depends
Which of these allowed in auditing services.
Share / Accepts Profits
Partnership with an unqualified person
Secures work through another person
Solicits work by advertising
Receiving a remuneration as a right
Which is/are a professional ethic/s in all these
Advertises his attainments
Accepts Commission
Sharing of fees
Working confidentially
Disclosing information provided by the client to a person other than a client without his/her consent is known as
Breach of contract
Breach of competency
Breach of confidentiality
Breach of integrity
