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Created on March 25, 2026 By

CA Sonal Saboo

CMA Inter

Inter CA&A PN-10 Quiz 6

This quiz is based on the CMA Corporate Accounting and Auditing paper.
Each question is multiple-choice with 4 options, and only 1 option is correct.
Attempt the quiz to test your understanding of CMA CAA concepts.

1 / 25

Category: Corporate Accounting and Auditing PN-10

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

a. ADT 1

b. ADT 2

c. ADT 3

d. ADT 4

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Category: Corporate Accounting and Auditing PN-10

2. The first auditor of a company, other than a Government company, shall be appointed by the within thirty days from the date of registration of the company.

a. Shareholders

b. Board of Directors

c. Government

d. Employees

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Category: Corporate Accounting and Auditing PN-10

3. As per Section 139(9), a retiring auditor may be re-appointed at an annual general meeting, if:

a. he is not disqualified for re-appointment

b. he has not given the company a notice in writing of his unwillingness to be re-appointed

c. a special resolution has not been passed at that meeting appointing some other auditor or providing expressly that he shall not be re-appointed

d. All of these

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Category: Corporate Accounting and Auditing PN-10

4. Auditor of a company appointed u/s shall not act as the cost auditor of the company.

a. 139

b. 148

c. 204

d. 141

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Category: Corporate Accounting and Auditing PN-10

5. Which of the following are the essential characteristics of a good audit report?

a. Simplicity

b. Clarity

c. Objectivity

d. All of these

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Category: Corporate Accounting and Auditing PN-10

6. Which of the following is not a content of audit report as per CARO?

a. Inventory

b. Acceptance of deposit

c. Recruitment of employees

d. Repayment of loan

7 / 25

Category: Corporate Accounting and Auditing PN-10

7. An auditor shall submit a unmodified report when .

a. The financial statements exhibit true and fair view

b. The financial statements are partially correct

c. The financial statements are incomplete

d. The financial statements are unavailable

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Category: Corporate Accounting and Auditing PN-10

8. Secretarial Audit is covered under section .

a. 204

b. 148

c. 139

d. 133

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Category: Corporate Accounting and Auditing PN-10

9. A cost auditor submits his report along with reservations and observations in Form No.

a. CRA 1

b. CRA 2

c. CRA 3

d. CRA 4

10 / 25

Category: Corporate Accounting and Auditing PN-10

10. Any casual vacancy in a govt. company is filled by the CAG of India within days.

a. 15

b. 30

c. 45

d. 60

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Category: Corporate Accounting and Auditing PN-10

11. An auditor expresses opinion on financial statements when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, either individually or in aggregate, are both material and pervasive to the financial statements.

a. Qualified

b. Adverse

c. Modified

d. Disclaimer of

12 / 25

Category: Corporate Accounting and Auditing PN-10

12. Audit Certificate contains .

a. Details of Facts

b. Details of Frauds

c. Expression of Opinion

d. Expression of Suggestions

13 / 25

Category: Corporate Accounting and Auditing PN-10

13. Audit Report contains .

a. Details of Facts

b. Details of Frauds

c. Expression of Opinion

d. Expression of Suggestions

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Category: Corporate Accounting and Auditing PN-10

14. The audit procedure to be applied in this context of Splitting of Shares are

a. The auditor shall confirm that alteration was authorised by articles

b. He should verify the minutes of the Board meeting and ordinary resolution passed in the general meeting in which the approval of members is obtained

c. He should verify that alteration had been effected in copies of Memorandum, Articles, etc.

d. All of these

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Category: Corporate Accounting and Auditing PN-10

15. If debentures are redeemable, it can be redeemed in which of the following ways?

a. By way of payment as donation

b. By payment whenever the company desires to do so

c. By way of personal drawing

d. By way of payment as shares without consideration

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Category: Corporate Accounting and Auditing PN-10

16. Auditor shall verify whether the unpaid dividend has been transferred to the Unpaid Dividend Account within days from the expiry of days allowed for declaration and payment of dividend.

a. 7,20

b. 7,30

c. 15,20

d. 15,15

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Category: Corporate Accounting and Auditing PN-10

17. Essential Characteristics of a Good Audit Report are .

a. Simplicity,Clarity,Bre vity,Firmness,Objecti vity,Disclosure,Impart iality,Information- based and Timeliness

b. Simplicity,Clarity,Br evity,Firmness,Obje ctivity,Disclosure,Im partiality,Informatio n-based and Popularity

c. Simplicity,Clarity,Bre vity,Firmness,Objecti vity,Disclosure,Impar tiality,Information- based and ambiguity

d. None of these

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Category: Corporate Accounting and Auditing PN-10

18. As per Rule 11 of Companies (Audit and Auditors) Rules 2014, the auditor’s report shall also include his views and comments on which of the following matters?

a. whether the company has disclosed the impact, if any, of pending litigations on its financial position in its financial statement;

b. whether the company has made provision, as required under any law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts;

c. whether there has been any delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.

d. All of these

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Category: Corporate Accounting and Auditing PN-10

19. Basic Elements of Audit Report as per Standards on Auditing are .

a. Key Audit Matters

b. Auditor’s Opinion

c. Basis for Opinion

d. All of these

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Category: Corporate Accounting and Auditing PN-10

20. An audit report with an unmodified opinion is also known as ‘ ’ or ‘Unqualified Report’

a. Clean Report

b. Clear Report

c. Neet Report

d. Honest Report

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Category: Corporate Accounting and Auditing PN-10

21. Some situations when an auditor should express a qualified opinion is/are .

a. Non-adherence to AS- 2 with regard to inventory valuation at the lower of cost and net realisable value.

b. Auditor being prevented by the management from observing the counting of physical inventory where such action is material to the financial statements.

c. Both 1 and 2

d. Non-receipt of branch audit reports from a significant number of branches.

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Category: Corporate Accounting and Auditing PN-10

22. An auditor expresses opinion on financial statements when the auditor, having obtained sufficient appropriate audit evidence, concludes that misstatements, either individually or in aggregate, are both material and pervasive to the financial statements.

a. Qualified

b. Disclaimer

c. Adverse

d. None of these

23 / 25

Category: Corporate Accounting and Auditing PN-10

23. Which of the following is not a duty of duties of the NFRA?

a. Recommend accounting and auditing policies and standards to be adopted by companies for approval by the Central Government.

b. Monitor and enforce compliance with Income Tax Act and auditing standards.

c. Perform such other functions and duties as may be necessary or incidental to the aforesaid functions and duties.

d. Oversee the quality of service of the professions associated with ensuring compliance with such standards and suggest measures for improvement in the quality of service.

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Category: Corporate Accounting and Auditing PN-10

24. the term ‘ ’ means the policies and procedures adopted by the company for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

a. Enforcement Committee

b. Internal Financial Controls

c. National Advisory Committee on Accounting Standards

d. National Financial Reporting Authority

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Category: Corporate Accounting and Auditing PN-10

25. NFRA consists which of the following?

a. Accounting Standards Committee

b. Auditing Standards Committee

c. Enforcement Committee

d. All of these

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Inter PN-10 CAA Quiz 6

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