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Companies Act 2013: Auditing Provisions

Test your knowledge of auditor appointments, rotations, and related provisions under the Indian Companies Act, 2013

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

What is the maximum number of members in a private company, as per new Companies Act, 2013?

  1. 70
  2. 50
  3. 200
  4. 250
  5. 100
Question 2 Multiple Choice (Single Answer)

Who has the authority to decide the remuneration of the first auditors?

  1. The members at the general meeting
  2. The Central Government
  3. The auditors themselves
  4. The board
  5. The CAG
Question 3 Multiple Choice (Single Answer)

Which of the following classes of companies is covered under rotation scheme of auditors?

  1. Unlisted public companies having paid up capital of Rs. 5 crore or more
  2. Private companies having paid up capital of Rs. 20 crore or more
  3. All companies having public borrowing from financial institution, banks or public deposits of Rs. 20 crore or more
  4. All private companies
  5. Only for public companies
Question 4 Multiple Choice (Single Answer)

If any relative of the auditor holding interest on security whose face value exceeds ________, then the auditor is disqualified from being appointed as auditor.

  1. Rs. 10
  2. Rs. 100
  3. Rs. 1,000
  4. Rs. 10,000
  5. Rs. 1,00,000
Question 5 Multiple Choice (Single Answer)

Who has to appoint the first auditor of a Government company?

  1. The Central Government
  2. The State Government
  3. The Board of Directors
  4. The members
  5. The Comptroller and Auditor General of India
Question 6 Multiple Choice (Single Answer)

What is the time limit prescribed under the New Companies Act for appointment of subsequent auditor of a Government company?

  1. Within 180 days from the commencement of financial year
  2. Within 6 months from the commencement of the financial year
  3. Within 180 days from the end of the previous financial year
  4. Within 6 months from the end of the previous financial year
  5. Within 1 year from the end of the previous financial year
Question 7 Multiple Choice (Single Answer)

Who has to appoint the subsequent auditors of a Govt. Company?

  1. Board
  2. Members at AGM
  3. Central Government
  4. State Government
  5. CAG
Question 8 Multiple Choice (Single Answer)

Mr. A (practicing CA) is a partner in XYZ Associates as well as ABC Associates. XYZ Associates retired under rotation as per section 139 (2). The company decides to appoint ABC Associates as the next auditor. Can the company do so?

  1. Yes
  2. No
  3. Yes but Mr. A can not sign the audit report
  4. Yes and Mr. A can sign the audit report
  5. Company can appoint other partners in ABC Associates except Mr. A
Question 9 Multiple Choice (Single Answer)

What is the time limit within which any existing listed company is required to comply with mandatory requirement of rotating their auditor?

  1. Within 3 years from the commencement of Companies Act, 2013
  2. Within 2 years from the commencement of Companies Act, 2013
  3. Within 1 year from the commencement of Companies Act, 2013
  4. Within 4 years from the commencement of Companies Act, 2013
  5. Immediate compliance is required
Question 10 Multiple Choice (Single Answer)

What is the time limit within which CAG shall appoint auditor in case of casual vacancy in a Govt. Company?

  1. 30 days
  2. 31 days
  3. 1 month
  4. 60 days
  5. 90 days
Question 11 Multiple Choice (Single Answer)

What is the section under which the meaning of Accounting Standards is prescribed under New Companies Act, 2013?

  1. Section 211(3B)
  2. Section 211(3C)
  3. Section 132
  4. Section 133
  5. Section 127
Question 12 Multiple Choice (Single Answer)

What is the rotation period prescribed under the New Companies Act for auditors?

  1. Individual & firm - 5 years
  2. Individual - 5 years & firm - 10 years
  3. Individual & firm - 10 years
  4. Individual - 10 years & firm - 15 years
  5. Individual & firm - 15 years
Question 13 Multiple Choice (Single Answer)

What is the penalty for not filing statement showing reason for resignation as auditor with ROC or CAG within 30 days?

  1. Rs. 50,000
  2. Rs. 5,00,000
  3. Rs. 50,000 to Rs. 5,00,000
  4. Rs. 10,00,000
  5. Rs. 50,000 to Rs. 10,00,000
Question 14 Multiple Choice (Single Answer)

In case of Govt. Companies, what is the period within which the auditor is required to file a statement specifying the reasons and fact of resignation with ROC and company or CAG?

  1. 30 days
  2. 31 days
  3. 1 month
  4. 150 days
  5. 180 days
Question 15 Multiple Choice (Single Answer)

Financial year as defined by New Companies Act, 2013 is from ______________________.

  1. April to March
  2. January to December
  3. Any 12 months
  4. Any 15 months
  5. March to February
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