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  1. Auditor shall be punished with imprisonment for a maximum period of ……… under Section 539 for falsification in the books of accounts.
    (A) 3 years
    (B) 5 years
    (C) 7 years
    (D) 9 years
    Ans : (C)

    92. “Auditor is not an insurer.” In which of the following cases, the decision has been given ?
    (A) The Kingston Cotton Mills Co. Ltd. (1986)
    (B) London & General Bank (1895)
    (C) Allen Craig & Co. Ltd. (1934)
    (D) Irish Woollen Co. Ltd.
    Ans : (B)

    93. The Section 80A of the Companies’ Act is related with the redemption of—
    (A) Debentures
    (B) Redeemable preference shares
    (C) Irredeemable preference shares
    (D) None of the above
    Ans : (C)

    94. Company Auditor is responsible—
    (A) For directors
    (B) For shareholders
    (C) For public
    (D) For creditors
    Ans : (B)

    95. In Balance Sheet, Audit Accounts are audited—
    (A) Monthly
    (B) Bi-monthly
    (C) Annually or half yearly
    (D) Quarterly
    Ans : (C)

    96. Audit adopted by banking company is—
    (A) Continuous Audit
    (B) Periodical Audit
    (C) Internal Audit
    (D) Balance Sheet Audit
    Ans : (A)

    97. Which of the following have lien of Company Auditor ?
    (A) Books of Accounts of the Company
    (B) Vouchers of the Company
    (C) Auditor’s working paper
    (D) All of the above
    Ans : (C)

    98. To appoint new auditor in place of retiring auditor, to adopt the procedure, which section of Companies’ Act, 1956 is applicable ?
    (A) 223
    (B) 224
    (C) 225
    (D) 226
    Ans : (B)

    99. “A company has a separate legal existence from its members.” This principle was first laid down in case of—
    (A) Saloman Vs. Saloman & Co. Ltd. (1897)
    (B) Daimler Co. Ltd. Vs. Continental Tyre & Rubber Co. (1916)
    (C) State of U. P. Vs. Renu Sagar Power Co. (1991)
    (D) Santunu Roy Vs. Union of India (1989)
    Ans : (A)

    100. According to ownership, Government Company means ……… share.
    (A) Whose paid-up share capital’s 48%, shares are owned by Government
    (B) Whose paid-up share capital’s 49% shares are owned by Government
    (C) Whose paid-up share capital’s 50% shares are owned by Government
    (D) Whose paid-up share capital’s 51% shares are owned by Government
    Ans : (D)

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