Solved Paper Junior Auditor 2019 [Part-1] – HPSSC Hamirpur

Series: B

Post Code: 672

1. A Performance audit can be a review of a programme to assure that it is

1. Complete
2. Satisfactory
3. Foolproof
4. Satisfying its objective

2. External Auditor is responsible for

1. Internal audit
2. External audit
3. Both internal as well as external audit
4. Management audit

3. An audit programme is set of …………….. which are to be followed for proper execution of audit.

1. Orders
2. Directions
3. Instructions
4. Ruler

4. Working paper helps in proper ……. of audit.

1. Planning
2. Performance
3. Planning and performance
4. Execution

5. Which of the following is not a technique of obtaining evidence?

1. Inspection
2. Observation
3. Enquiry
4. Investigation

6. Minimum essential work to be done is……. And rest is according to circumstances.

1. Standard Programme
2. General Programme
3. Essential Programme
4. Relevant Programme

7. It is the duty of the auditor to maintain…….. of the client information.

1. Accuracy
2. Follow up
3. Secrecy
4. Confidentiality

8. Seniors can supervise the audit work performed by the juniors by examining their

1. Records and Documents
2. Performance
3. Behaviour at work place
4. Working papers

9. Where the vacancy is caused by resignation of auditor, such vacancy shall only be filled by

1. C & AG
2. Central Government
3. Company in general meeting
4. Board of Directors

10. Auditor has to report to

1. Management
2. Owners
3. Government
4. Appointing authority

11. When auditor does not have any reservation? objection regarding the information under audit, then he issues an

1. Qualified opinion
2. Averse opinion
3. Unqualified opinion
4. Negative opinion

12. The auditor report should be signed in the name of the

1. Audit firm
2. Personal name
3. Either A or B
4. None of these

13. Whether the management can restrict the scope of work of external auditor?

1. Yes
2. No
3. In some cases
4. If shareholders permit

14. Section 227 (1A) requires an auditor to inquire whether the position as state in the books is correct, regular and is

1. Healthy
2. Sound
3. Misleading
4. Not misleading

15. The duties of an auditor are

1. Many and general
2. Many and specific
3. General and specific
4. Many and varied

16. In case information is not supplied to the auditor, he can report the same to the

1. Board of Directors
2. Managing Director
3. Members
4. C.E.O. of the company

17. Every auditor appointed under Section 224 (1), must intimate to the registrar within……..days of the receipt of appointment from company.

1. 15
2. 21
3. 30
4. 18

18. First directors are appointed within ……………. Of the date of the registration of the company.

1. One month
2. Two months
3. Three months
4. Six months

19. The term company is defined under which Section of the concerned Act?

1. Section 3(1)
2. Section 4(2)
3. Section 2(4)
4. Section 1 (3)

20. Maximum number of persons in case of partnership banking business is

1. 10
2. 20
3. 30
4. 5

21. Under which Section a private company can automatically converted into Public company?

1. 34
2. 43
3. 53
4. 35

22. Liability under which Section many be imposed only if it is proved that the companies business has been carried on with a view to defraud the creditors?

1. 540
2. 541
3. 542
4. 543

23. In case of non-profit making companies books of accounts are required to be preserved for how many years?

1. 2
2. 4
3. 6
4. 8

24. According to which Section name of company should end with “Ltd” or “Pvt.

1. 10
2. 11
3. 12
4. 13

25. If a company which is formed with unlimited liability wants to convert into a limited liability by

1. Ordinary resolution
2. Special resolution
3. No need
4. None of these

26. Company should file a prospectus in case of conversion of private company into a public company within how many days from the date of resolution?

1. 30 days
2. 45 days
3. 60 days
4. 35 days

27. How many members should signed the MOA in case of private company?

1. 1
2. 2
3. 3
4. 4

28. Any change in the address of the registered office must be communicated within

1. 15 days
2. 1 month
3. 5 month
4. 40 days

29. Ultra vires loans granted by the company are

1. Void
2. Voidable
3. Valid
4. Illegal

30. Capital clause of a company can be changed with the permission of

1. Company Law Board
2. Registrar
3. Court
4. None of these

31. Who conceives the idea of the business?

1. Directors
2. Promoters
3. Auditor
4. Secretary

32. Pre-incorporation contract is also known as

1. Provisional
2. Promoters
3. Auditors
4. Secretary

33. Which prospectus were issued in case securities were issued in stages?

1. Deemed
2. Shelf
3. Red herring
4. None of these

34. Who declares a company as a sick company?

1. BIFR
2. MRTP
3. FERA
4. RBI

35. When the shares are transferred to X from Y. Y will be a ………….. of the company.

1. Member
2. Shareholder
3. Partner
4. None of these

36. A void contract is

1. An illegal agreement
2. Partly valid agreement
3. Ceased to be a valid agreement
4. None of these

37. An agreement entered into before marriage between a Muslim wife and husband that the wife shall be at liberty to live with her parents after marriage is

1. Valid
2. Void
3. Voidable at the option of Husband
4. Illegal

38. SDR is a

1. Gold paper
2. Bond
3. White paper
4. Gold

39. Non-convertible debenture refers to.

1. Owner’s capital
2. Loan capital
3. Short term capital
4. All of these

40. Goodwill arising on amalgamation is to be

1. Retained in the books of transferor company
2. Amortized to income on a systematic basis
3. Adjusted against reserves and P &L A/c
4. Either (A) or (B)

41. A contributory is a

1. Creditor
2. Shareholder
3. Debenture holder
4. None of these

42. The cost, volume and profit relationship is described by the equation Y =30,000+0.7 X, in which X is sales revenue and Y is total cost. The B.E.P. will be

1. 10,00,000
2. 12,00,000
3. 9,00,000
4. 8,00,000

43. X,Y,Z are partners in the ratio of ½,2/5 and 1/10. The new ratio of Y and Z, if X retires will be

1. 13:7
2. 2:1
3. 7:13
4. 4:1

44. Realisation Account is a which type of account?

1. Real
2. Personal
3. Nominal
4. None of these

45. Which of the following is a period cost?

1. Variable cost
2. Overhead cost
3. Prime cost
4. Fixed cost

46. If the share of 10 Rs, on which  6 have been paid is forfeited it can be re-issued at the minimum price of

1. 7 Rs
2. 6 Rs
3. 10 Rs
4. 4 Rs

47. If the profit is 16 and margin of safety is 20% the contribution will be

1. 3
2. 12
3. 75
4. 30

48. Which of the following ratio have negative relation with profitability?

1. Operating ratio
2. Gross profit
3. Net profit ratio
4. None of these

49. Life of assets id 5 year, initial outlay is 50,000 estimated. Annual cash flow is 12,500, IRR will be

1. 8%
2. 10%
3. 12%
4. 14%

50. First generation of computers was used in

1. 1930-1945
2. 1946-59
3. 1915-1940
4. 1910-1925

51. Cost behaviour analysis applies to

1. Retailers
2. Wholesalers
3. Manufacturers
4. All entities

52. The variable costing method is also known as the

1. Direct Costing Method
2. Indirect Costing Approach
3. Absorption Costing Method
4. Period Costing Approach

53. CVP analysis does not consider

1. Level of activity
2. Fixed Costing approaching
3. Variable cost per unit
4. Sale mix

54. The measure of central tendency listed below is

1. The raw score
2. The mean
3. The range
4. The standard deviation

55. If the arithmetic mean of 20 values is 10, then sum of these 20 values is

1. 10
2. 20
3. 200
4. 20+10

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