What is the purpose of a "special notice" in the context of removing an auditor before the expiry of their term?

To allow the retiring auditor to reappoint themselves without any opposition.

To provide the company with an opportunity to appoint a new auditor without the retiring auditor's consent.

To allow the retiring auditor to extend their tenure beyond the prescribed limits.

To grant the retiring auditor the right to veto the appointment of a new auditor.

According to Section 141, who is eligible to be appointed as an auditor of a company?

Any individual with a financial background.

A person who is a relative of a company director.

A Chartered Accountant as defined by the Chartered Accountants Act, 1949.

Any person who has served as an auditor in another company.

Under which circumstances can an auditor of a company report fraud to the Central Government?

When there is any financial discrepancy in the company's accounts.

When there is a conflict of interest between the auditor and the company.

When the auditor believes that fraud involving a prescribed amount has been committed by the company's officers or employees.

When the auditor suspects that the company's financial statements do not comply with the accounting standards.

In the context of the audit of government companies, who appoints the auditor and provides directions for the audit?

National Financial Reporting Authority

Comptroller and Auditor General of India

Institute of Chartered Accountants of India

What is the purpose of the auditor's report as mandated by Section 143?

To provide suggestions for improving the company's internal controls.

To provide an opinion on the company's advertising practices.

To express an opinion on the accuracy and fairness of the company's financial statements.

To recommend changes in the company's operational structure.

Which of the following individuals cannot be qualified for appointment as an auditor of a company, as per Section 141?

A relative of a company director holding securities worth Rs. 1,50,000 in the company.

A person who has a business relationship with the company's subsidiary.

A person who is in full-time employment elsewhere.

A person who has been convicted of an offence involving fraud within the last 5 years.

What is the purpose of conducting a "test audit" for a government company?

To evaluate the efficiency of the company's internal controls.

To ensure compliance with accounting standards.

To verify the accuracy of the company's financial statements.

To provide an opportunity for the Comptroller and Auditor General to review the audit process.

What is the primary duty of an auditor in relation to a company's financial statements?

To endorse the company's financial statements without any modifications.

To suggest improvements in the company's operational efficiency.

To express an opinion on the company's internal controls.

To report to the members of the company on the accounts and financial statements examined.

What does Section 140 (4) of the Companies Act pertain to?

Appointment of the first auditor of a newly incorporated company.

Remuneration of auditors appointed by the company.

Qualifications required to be appointed as an auditor.

Special notice for removing an auditor before the expiry of their term.

Which entity has the authority to prescribe auditing standards for auditors?

Institute of Chartered Accountants of India (ICAI)

Ministry of Corporate Affairs (MCA)

National Financial Reporting Authority (NFRA)

Comptroller and Auditor General of India (CAG)

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