Tag: company

Questions Related to company

Which of the following section of the Companies Act, 2013 contains provisions as regards to qualification of auditors?

  1. Section 131

  2. Section 124

  3. Section 224

  4. Section 141


Correct Option: A

Company .............. to send any intimation of appointment of first auditor to the Registrar of companies (ROC).

  1. is required

  2. is not required

  3. shall

  4. must


Correct Option: A

The company shall inform the auditor concerned of his or its appointment, and also file a notice of such appointment, and also file a notice of such appointment with the Registrar within _____ of the meeting in which the auditor is appointed.

  1. 7 days

  2. 15 days

  3. 30 days

  4. 45 days


Correct Option: A

Section 139(1) of the Companies Act 2013 provides that____________must appoint an auditor.

  1. Only public company

  2. Only private company

  3. Every one man company

  4. Every company


Correct Option: D

Section 139(1) of the Companies Act, 2013 provides that every company must appoint ............... as an auditor.
(I) An Individual
(II) A firm
(III) A firm having at least three partners
(IV) Body corporate
The correct answer is -

  1. (I) & (III) only

  2. (II) & (IV) only

  3. (I) & (II) only

  4. (I), (III) & (IV) only


Correct Option: A

Where the corporate veil has been used for commission of fraud or improper conduct, Courts have lifted the veil and looked at the realities of die situation. In relation to this, which of the following case law can be quoted?

  1. Connors Bros. vs. Connors

  2. Daimler Co. Ltd. vs. Continental Tyre & Rubber Co.

  3. The Workmen Employed in Associated Rubber Industries Limited, Bhavnagar vs. The Associated Rubber Industries Ltd., Bhavnagar and another

  4. Gilford Motor Co. vs. Horne


Correct Option: D

Section 139(1) of the Companies Act, 2013 provides that every company must appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its _______ and thereafter till the conclusion of every _______ and the manner and procedure of selection of auditors by the members of the company at such meeting shall be such as may be prescribed however the company shall place the matter relating to such appointment for ratification by _______ at every ________

  1. sixth annual general meeting; fifth meeting; members; fifth annual general meeting

  2. sixth annual general meeting; sixth meeting; board of directors; board meeting

  3. fifth annual general meeting; fifth meeting; members; extraordinary general meeting

  4. sixth annual meeting; sixth meeting; members; annual general meeting


Correct Option: A

As per section 141(4) of the Companies Act, 2013 where person appointed as an auditor of a company incurs any of the disqualifications mentioned in section 141(3) after his appointment, he_________his office has such auditor and such vacation shall be deemed to be a _________in the office.

  1. may vacate; casual vacancy

  2. may vacate;ordinary vacancy

  3. shall vacate;casual vacancy

  4. shall vacate;special vacancy


Correct Option: C

Under Section 143(2) of the Companies Act, 2013 the auditor shall make a report to the ............. of the company.

  1. managing directors

  2. board of directors

  3. members and board of directors

  4. members


Correct Option: A

An auditor may function as___________
      (I) An employee
      (II) an independent professional
The correct answer is-

  1. (I) only

  2. (II) only

  3. (I) or (II)

  4. Neither (I) nor (II)


Correct Option: C