Subject

0313 AUDITING AND CORPORATE Question Booklet No.

Code
GOVERNANCE(Core-13)
To be filled in by candidate by ball-point pen only OMR Sl. No.

Roll No.

Signature of Invigilator ................................. Declaration : I have read and understood the instructions given below.

Time of Examination ...................................... Full Signature of Candidate ...........................................................................

Full Marks : 80/50

Name of Candidate ......................................................................................... Time : 1 hour

Date of Examination ......................................

Number of Questions
in the Booklet } 50/40

UU 6th Semester Examination, 2020

INSTRUCTIONS TO CANDIDATES
• Immediately after getting the booklet read instructions carefully mentioned on the front and back page of
the Question Booklet. Do not open the seals unless asked by the Invigilator.

• Write your Roll No., OMR Response Sheet No., in the specified places given above and put your signature.

• Write the subject code of the booklet in your OMR Sheet.

• Make all entries in the OMR Response Sheet as per the given instructions; otherwise OMR Response Sheet
will not be evaluated.

• After opening the seals, ensure that the Question Booklet contains total no. of pages as mentioned above
and printing of all the 50 / 40 questions are proper. If any discrepancy is found, inform the invigilator within
15 minutes and get the correct Question Booklet.

• For each question in the Question Booklet choose the correct option from the given four alternatives and
darken the same circle in the OMR Response Sheet with Black or Blue ball-point pen.

• Darken the circle of correct answer properly; otherwise answers will not be evaluated. The candidate will
be fully responsible for it.

• If more than one option is darken foe a particular question, then it will be treated as wrong answer.

• After completion of the examination, only OMR Response Sheet is to be handed over to the invigilator.

THERE IS NO NEGATIVE MARKING FOR WRONG ANSWER

AUDITING AND CORPORATE GOVERNANCE 1 0313

 Rough Work

AUDITING AND CORPORATE GOVERNANCE 2 0313

 AUDITING AND CORPORATE GOVERNANCE(CORE 13)
(Answer any 40 questions)

1 A stockholder orientation includes all of the fol- 5 A high-commitment approach to environmen-

lowing activities except: tal issues may include all of the following ex-
(A) Generating data about stakeholder groups cept:

(B) Assessing the firm’s effects on stake- (A) Risk analysis

holder groups (B) Stakeholder analysis
(C) Distributing stakeholder information (C) Green washing
throughout the firm
(D) Strategic sustainability auditing
(D) Minimizing the influence of stakeholder in-
formation on the firm 6 Better access to certain markets, differen-
tiation of products, and the sale of pollu-
2 Stakeholders are considered more important to tion-control technology are ways in which bet-
an organization when: ter environmental performance can:
(A) They can make use of their power on the (A) Increase revenue
organization
(B) Increase costs
(B) They do not emphasize the urgency of their
issues (C) Decrease revenue

(C) Their issues are not legitimate (D) Decrease costs

(D) They can express themselves articulately 7 Atmospheric issues include all of the following
except:
3 A(n) ______ is a problem, situation, or oppor-
tunity requiring an individual, group,or organi- (A) Acid rain
zation to choose among several actions that must (B) Global warming
be evaluated as right or wrong.
(C) Air pollution
(A) Crisis
(D) Water quantity
(B) Ethical issue
(C) Indictment 8 To be successful, business ethics training pro-
grams need to:
(D) Fraud
(A) Focus on personal opinions of employees.
4 What type of justice exists if employees are be-
(B) Be limited to upper executives.
ing open, honest, and truthful in their communi-
cations at work? (C) Educate employees on formal ethical
frameworks and models of ethical decision
(A) Procedural
making.
(B) Distributive
(D) Promote the use emotions in making tough
(C) Ethical ethical decisions.
(D) Interactional
AUDITING AND CORPORATE GOVERNANCE 3 0313
9 Most companies begin the process of establishing 14 The social economy partnership philosophy em-
organizational ethics programs by developing: phasizes:
(A) Ethics training program (A) Cooperation and assistance
(B) Codes of conduct (B) Profit maximization
(C) ethics enforcement mechanisms (C) Competition
(D) Hidden agendas (D) Restricting resources and support
10 For referent to be effective, what must exist be- 15 Which of the following is not a driver of respon-
tween individuals in the relationship? sible competitiveness?
(A) Antipathy (A) Policy drivers
(B) Rivalry (B) Development drivers
(C) History (C) Business action
(D) Empathy (D) Social enablers
11 When a firm charges different prices to different 16 Which of the following is a problem presented
groups of customers, it may be accused of: by ethics audits?
(A) Cultural relativism (A) They may be used to reallocate resources.
(B) Money laundering
(B) They identify practices that need improve-
(C) Facilitating payments ment.
(D) Price discrimination (C) Selecting auditors may be difficult.
12 The ability to interpretand adapt successfully to (D) They may pinpoint problems with stake-
different national, organizational, and profes- holder relationships
sional cultures is called:
17 The first step in the auditing process should be
(A) National competitiveness to secure the commitment of:
(B) Global development (A) Employees
(C) Cultural intelligence (B) Top executives and directors
(D) Stakeholder sensitivity (C) Stockholders
13 Successful global initiatives addressing stan- (D) Customers
dards for business must begin and end with:
18 Codes of conduct and codes of ethics
(A) The role of corporate governance and
(A) Are formal statements that describe what
shareholder power in corporate decision
an organization expects of its employees.
making.
(B) Become necessary only after a company
(B) Social activism
has been in legal trouble.
(C) The implementation of standardized ethics (C) Are designed for top executives and man-
programs. agers, not regular employees.
(D) The consolidation of economic and envi- (D) Rarely become an effective component of
ronmental efforts the ethics and compliance program.
AUDITING AND CORPORATE GOVERNANCE 4 0313
19 Which of the following is NOT one of the 24 Which of the following is not one the under-
primary elements of a strong organizational lying principles of the corporate governance
compliance program? Combined Code of Practice?
(A) A written code of conduct (A) Openness
(B) An ethics officer (B) Integrity
(C) Significant financial expenditures (C) Accountability
(D) A formal ethics training program (D) Acceptability

20 The hand-of-government refers to the 25 External audit of the accounts of a limited com-
pany is required
(A) Ability of the government to interfere in
business negotiations (A) Because it is demanded by the company’s
bankers
(B) Role of corporations to be profitable
within the law (B) By the Companies Act 2006

(C) Effect of national politics on business de- (C) At the discretion of the shareholders
cisions (D) To detect fraud
(D) Impact of changing government regula- 26 Which of the following is not a kind of audit?
tions (A) Statutory and private
21 An organization’s obligation to act to pro- (B) Government and continuous audit
tect and improve society’s welfare as well
(C) Interim audit
as its own intersects is referred to as
(D) None of these
(A) Organizational social responsibility
27 This kind of audit is conducted generally between
(B) Organizational social responsiveness two annual audits.
(C) Corporate obligation (A) Internal audit
(D) Business ethics (B) Interim audit
22 The view that business exists at society’s plea- (C) Final audit
sure and businesses should meet public ex-
(D) Continous audit
pectations of social responsibility is the
28 Voucher relates to____________.
(A) Iron law of responsibility argument
(A) Cash receipt
(B) Enlightened self-interest argument
(B) Cash payment
(C) Capacity argument
(C) Credit transactions
(D) Anti- freeloader argument (D) All of the above
23 Managerial ethics can be characterized by all 29 Auditing begins where_____ ends.
of the following levels except
(A) Selling
(A) Immoral management
(B) Inventory valuation
(B) Amoral management
(C) Accounting
(C) De-Moral management (D) Purchases
(D) Moral management
AUDITING AND CORPORATE GOVERNANCE 5 0313
30 In the case of a company in which not less than 35 Auditor should see that amount received for pre-
____ % of the subscribed share capital is held mium on issue of shares should be shown in___
whether singly or in combination by certain
(A) Subscribed capital
special institutions and bodies, the appoint-
ment or re-appointment of auditors shall be (B) Capital Reserve Account
made at each annual general meeting by a spe- (C) Share Premium account
cial resolution.
(D) Paid- up capital account
(A) 25%
36 Sec.143 of Companies Act 2013 deals with __
(B) 30%
(A) Powers and rights of an auditor
(C) 20%
(B) Removal of an auditor
(D) 15%
(C) Appointment of an auditor
31 Which of the following persons is qualified to
be a company auditor? (D) Remuneration of an auditor
(A) An employee of the company 37 Internal auditor is appointed by_____.
(B) A body corporate (A) Management
(C) A person who is indebted to the company (B) Shareholders
for an amount exceeding Rs. 1000 (C) Government
(D) A practicing-chartered accountant
(D) Statutory body
32 When the auditor is an employee of the organi-
38 Share premium account should be shown in
zation being audited, the audit is classified as
the Balance sheet under
(A) Internal
(A) Paid-up capital
(B) External
(B) Subscribed capital
(C) Compliance
(C) Reserves & surplus
(D) BothA&B
(D) Reserved capital
33 A company auditor can be removed before ex-
piry of his term by 39 _________ is the medium through which an
auditor expresses his opinion on the state of
(A) Shareholders affairs of the Client’s business.
(B) Board of Directors (A) Audit report
(C) Central Government
(B) Audit certificate
(D) State Government
(C) Audit programme
34 If there is capital loss, the auditor should
(D) Audit planning
(A) Not allow payment of dividend
(B) Allow payment of dividends
(C) Allow payment of dividends after making
such losses good
(D) None of the above
AUDITING AND CORPORATE GOVERNANCE 6 0313
40 _______Is the specific guidelines and di- 45 The audit that is made compulsory under statute
rections for efficient and effective comple- is called_________.
tion of the audit Work on timely and daily ba- (A) Statutory audit
sis, so as to minimize audit risk.
(B) Partial audit
(A) Audit planning
(C) Complete audit
(B) Audit report (D) Continuous audit
(C) Audit programme 46 Audit means__________.
(D) Audit certificate (A) Recording business transactions
41 _______Is a method of organizing the ac- (B) Preparing final accounts
counting system of a business concern or a
(C) Examination of books, accounts or vouchers
factory by Which the duties of various clerks
are arranged in such a way that the work of (D) Decision making
one person is automatically checked by another. 47 When a transaction has not been recorded in the
(A) Internal control books of account either wholly or partially such
errors are called_________
(B) Internal check
(A) Error of commission
(C) Internal audit
(B) Error of omission
(D) All of the above
(C) Compensating error
42 Internal check is a part of
(D) None of the above
(A) Internal audit
48 The liabilities of an auditor can be_______.
(B) Internal accounting
(A) Civil
(C) External audit
(B) Criminal
(D) Internal control
(C) Civil & Criminal
43 Civil liability of an auditor implies liability (D) Financial
for
49 Duties of an auditor is____________.
(A) Misappropriation of cash
(A) Statutory duties imposed by the Companies
(B) Misappropriation of goods Act
(C) Fraud (B) Duties imposed by legal or court decisions
(D) Misfeasance (C) Duties arising out of professional etiquette
44 Ifan auditor is not appointed at annual general (D) All of the above
meeting, he is appointed by the 50 Internal auditor of a company must be________.
(A) The Central Government (A) Cost accountant
(B) Board of Directors (B) Chartered accountant
(C) Shareholders (C) ICWA
(D) Company Law board (D) Need not possess any professional quali-
fication
AUDITING AND CORPORATE GOVERNANCE 7 0313
AUDITING AND CORPORATE GOVERNANCE 8 0313