1. Which of the following statements are true about management audit?
Correct : C. No time limit can be fixed for submission of the report under management audit
2. Which of the following is (are) true of the EDP auditors?
Correct : A. They should have computer expertise
3. Audit software includes
Correct : D. All of the Above
4. International auditing standards are issued by the:
Correct : C. International Audit and Assurance Standards Board
5. Under the Companies Act, 2013 a cost auditor must be a cost accountant having certificate of practice issued by the institute of Cost Accountants of India as per
Correct : A. Section 148
6. Management Audit assess the efficiency of management for third parties to commit funds for the business in situation such as –
Correct : D. All of the above
7. The section which contains provisions regarding compulsory Tax Audit is
Correct : C. Section 44AB
8. For an assesse carrying on business in India, deductions allowed under Section 33AB includes businesses of
Correct : D. All of the above
9. Transactions entered in the computer as they occur and processed simultaneously in the processing capabilities of accounting system is
Correct : B. Real-time processing system
10. Selecting and printing audit samples, comparing data on separate files, comparing audit data with clients records
Correct : A. Functions of Generalized Audit Software
11. Compliance with standard of Auditing is the responsibility of
Correct : C. Auditor
12. If the auditor is unable to draw reasonable assurance, he should either withdraw from engagement if permitted by law or disclaim his opinion, is given in which Standard on Auditing.
Correct : B. SA200
13. The ------- can be removed after the expiry of his term of office,as per the procedures laid down in section 225.
Correct : C. Auditor
14. An appointed auditor may be removed from his office either in accordance with the provisions and as per restrictions imposed by the
Correct : C. Both (a) and (b)
15. Cost audit is the verification of the correctness of cost accounts and adherence to the cost accounting plan. This concept is given by
Correct : D. Institute Of Cost and Works Accountants of London.
16. Cost audit helps in settlement of trade disputes. This is the advantage for
Correct : C. Society
17. The audit of financial records to ascertain the correctness of taxable profits means
Correct : A. Tax audit
18. According to section 44AB,Tax Audit is to be conducted by an
Correct : B. Chartered Accountant
19. Future oriented, independent and systematic evaluation of the activities of all levels of management for the purpose of improving organizational profitability and increasing the attainment of other organizational objectives is known as
Correct : C. Management audit
20. Objective of management audit are
Correct : D. (a) and (b).
21. The corporate governance structure of a company reflects the individual companies is
Correct : D. All of the above
22. The corporate governance framework consists of explicit and implicit contracts between
Correct : A. Company and the stakeholders
23. The primary stakeholders are:
Correct : C. Shareholders
24. The goal of corporate governance and business ethics education is to:
Correct : C. Create more ethics standards by which corporate professionals must operate
25. Good corporate governance helps to minimize:
Correct : D. All of the above
26. Benefits of Corporate governance:
Correct : D. All of the above
27. The framework for establishing good corporate governance and accountability was originally set up by the
Correct : B. Cadbury Committee
28. Which of the following is not one the underlying principles of the corporate governance Combined Code of Practice?
Correct : B. Acceptability
29. Which of the following is not pillars of corporate Governance
Correct : B. Reliability
30. The theory based on the concept of separation of ownership and control.
Correct : A. Agency Theory
31. There is no conflict of interest between the shareholders and BoD and Managers
Correct : B. Stewardship Theory
32. The key players of Anglo-Saxon model of Corporate Governance
Correct : A. Management, directors and shareholders
33. ________is transaction in securities of the company by an insider on the basis of unpublished price sensitive information
Correct : A. Insider trading
34. A person who exposes any kind of information or activity that is deemed illegal, unethical, or not correct within an organisation that is either private or public
Correct : A. Whistle blower
35. Which of the following is not rating agencies?
Correct : D. ICICI‟s Corporate Governance Rating
36. Directors service contracts should not exceed three years without
shareholder‟s approval
Correct : A. Cadbury Report
37. The primary stakeholders are
Correct : C. Shareholders.
38. Which of the following is not a model of corporate governance?
Correct : B. English model
39. In which of the following countries German Model of corporate governance is
not prevalent
Correct : C. Poland
40. Which of the following committee is appointed under the initiative of
Government of India on corporate governance?
Correct : B. Naresh Chandra Committee
41. Which of the following is not related to corporate governance reforms in
India?
Correct : D. Banking Regulation Act, 1949.
42. Which of the following statement is most appropriate regarding common governance problems in corporate failures
Correct : D. All of the Above
43. Which of the following is the major corporate collapses arising out of scam in India
Correct : A. Kingfisher Airlines
44. Corporate governance code in the United Kingdom was set up in 1992 by the
Correct : C. Cadbury Committee
45. The four pillars /principles of corporate governance
Correct : A. Accountability, fairness, transparency and independence
46. Stakeholders in the Stakeholder Theory are divided into primary and secondary stakeholders. Primary stakeholders are –
Correct : D. Only (b)
47. This committee laid down guidelines to ensure independence of auditors and recommended rotation of auditors.
Correct : C. Naresh Chandra Committee set up by Department of Company Affairs in 2002
48. The Companies Act, 2013 provisions relating to independent directors
Correct : D. Both (a) & (b)
49. Common governance problems of corporate failures in Developed countries are
i. Unethical business practices
ii. Audit failures
iii. Ambitious acquisitions and takeovers
iv. Remuneration structure
Correct : C. i, ii, iii
50. Common governance problems of corporate failures in India are
i. Accounting frauds carried out in collusion with statutory auditors
ii. Insider trading
iii. Fiduciary failure by the board
iv. Disproportionate compensation paid to executive board members and
senior management.
Correct : D. i, ii, iii, iv
51. Which of the following is not a OECD principle
Correct : A. The responsibilities of the government and bureaucrats
52. What does the Sarbanes-Oxley Act of 2002 stipulates?
Correct : D. All of the above
53. We need to conduct management audit for
Correct : C. (a) and (b)
54. EDP audit means when an audit is conducted in a computer information systems (CIS) environment. According to SA-401
Correct : A. ASS-29
55. Corporate governance is the interaction between various participants in
shaping company‟s performance. The participants included are
Correct : D. All of the above.
56. The pillars of corporate governance are
Correct : D. (a) and (b)
57. The regulatory framework of corporate governance in India is three tiered comprising of the
Correct : A. MCA, SEBI and Stock Exchanges.(SE)
58. The focus of the reforms in corporate governance in India is on
Correct : C. (a) and (b)
59. Corporate scams or scandals arise with the disclosure of
Correct : A. Misdeeds by trusted executives of large public corporations
60. Satyam computer services Ltd. was founded in 1987 by RamalingaRaju and his brother as aprivate company with just
Correct : C. 20 employees
61. What is meant by the phrase CSR?
Correct : A. Corporate Social Responsibility
62. An organization‟s appropriate tone at the top promoting ethical conduct is an example
Correct : C. Ethical behavior
63. Which of the following does the term Corporate Social Responsibility relate to?
Correct : D. All of the above
64. Which is the element of business ethics?
Correct : D. All of the above
65. The major aspects of environmental sustainability are:
Correct : D. All of the above
66. Section 135 of the Companies Act 2013 provides that the constitution of CSR committee is mandatory in company having a net worth of
Correct : B. Rs 500 crore
67. The CSR committee must be composed of
Correct : A. 3 or more Directors
68. Which of the following is not a role of the CSR committee?
Correct : C. Does not have outside relationships with other directors
69. Which of the following CSR provision is not applicable as per sec 135 of the Companies Act 2013?
Correct : D. None of the above
70. The word Philanthropy has been derived from Greek word „Philanthropia‟ which means
Correct : A. Love for mankind
71. Business approach that creates long term value for the company by incorporating economic, environmental and social dimensions into its core business decisions
Correct : B. Corporate Sustainability
72. The business ethics is also known as
Correct : C. Corporate Ethics
73. Corporate governance is primarily about
Correct : A. values
74. Which of the following is ingredients of environmental CSR?
Correct : D. All of the above
75. Which of the following activities can be done by the company to achieve its
CSR obligations?
Correct : D. All of the above
76. The functions of the CSR Committee
Correct : D. All of the above
77. Corporate Social Responsibility includes
Correct : D. All of the above
78. The concept of a triple bottom line encompasses
Correct : D. All of the above
79. Corporate Social Responsibility has been regulated by of the Companies Act, 2013
Correct : A. Section 135
80. Which of the following is not related to attributes of corporate philanthropy?
Correct : C. Human resources to take care of the employees
81. The acronym CSR stands for
Correct : B. Corporate Social Responsibility
82. Corporation are regarded as in the eyes of the law
Correct : A. Artificial person
83. Which of the following is not a model of CSR?
Correct : C. Indian model
84. The stakeholder view of social responsibility states that organisations must
respond to the needs of
Correct : C. all interested parties
85. Corporate social responsibility provides a wide range of benefits for companies in terms of
Correct : D. All of the above
86. The act of a corporate to five gifts/ charitable contributions to communities, universities, etc. that do not necessarily provide any economic benefit but helps in generating goodwill among employees, customers and the local community.
Correct : B. Corporate philanthropy
87. The three elements of „triple bottom line‟ (TBL) coined by Elkington are
i. Economic sustainability
ii. Social sustainability
iii. Corporate sustainability
iv. Environment sustainability
Correct : C. i, ii, iv
88. which of the following statements are true
i. CSR has its roots in business ethics
ii. CSR and business ethics are conceptually different
iii. CSR and business ethics are synonymous
iv. CSR and business ethics can be used interchangeably
Correct : A. i and ii
89. Today stakeholders are increasingly demanding that businesses take up environmental stewardship as a part of CSR to reduce carbon footprint of the business through
Correct : D. All of the above
90. Section 135 of the Companies Act, 2013 has laid down that all companies incorporated in India having a net worth of INR 500 crore or more, must spend a percentage of the average net profits made during every block of three years. What is the percentage?
Correct : C. 2%
91. The CSR projects/activities outlined in the Schedule VII of the Companies Act, 2013 are
i. Promoting education
ii. Eradicating hunger, poverty & malnutrition
iii. Protection of national heritage, art and culture
iv. Ensuring environmental sustainability
Correct : B. All of the above
92. The members of the corporate social responsibility committee will be
appointed by
Correct : A. Board of directors
93. The governance flaws of collapsed companies may be happened due to
Correct : D. All of the above.
94. -------- refers to a set of prescriptions and practices that provide guidelines with regards to the effective control of a company in the best interest of its shareholders and other stakeholders.
Correct : B. Corporate governance code
95. A commitment to improve community well –being through discretionary business practices and contributions of corporate resources is called Corporate Social Responsibility. This definition is given by
Correct : A. McGuire
96. Some common forms of corporate philantrophy are
Correct : C. Both (a) and (b)
97. The Triple Bottom line (TBL) which are interlinked are found in
Correct : D. Corporate sustainability.
98. -----------is defined as the duty to cover environmental implications of operations, products and facilities of company.
Correct : B. Environmental aspect of Corporate Social Responsibility
99. The CSR committee shall
Correct : C. Both (a) and (b)
100. Giving back to host communities is under the notions of