Institute of Chartered Financial Analysts of India (ICFAI) University 2007 Certification Finance Financial Accounting (CFA510):2009 - Question Paper
Monday, 17 June 2013 10:55Web
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66.Which of the subsequent statements is false in respect of duties of an auditor?
(a) He should scrutinize the loans and advances to see that they have been properly secured
(b) He should check that the transactions merely represented by book entries are not prejudicial to
the company
(c) He should check to see that the company is not an investment company under the Companies
Act
(d) He need not check when loans and advances made by the company have been shown as
deposits
(e) He should check whether personal expenses have charged to the revenue accounts of the
company. (1 mark)
67.Which of the subsequent is optional while submitting the annual reports in the Annual General Meeting?
(a) Balance sheet
(b) Profit and loss account
(c) Funds flow statement
(d) Directors’ report
(e) Auditors’ report. (1 mark)
68.Auditors are stated to problem an unqualified opinion when they
(a) Are not independent of the company being audited
(b) Are not familiar with the company or industry within which the company operates
(c) obtain the financial statements to be inconsistent with standards
(d) Consider the financial statements “a fair presentation”
(e) Are not qualified for being appointed as the auditor of the company. (1 mark)
69.During the year 2007-08, Arun Ltd., paid Rs.8,10,000 towards dividend. On April 01, 2007, dividends in
arrears were Rs.2,70,000. The company’s capital structure consisted of 33,750 9%, cumulative preference
shares of Rs.100 each, fully paid-up and 67,500 equity shares of Rs.30 every fully paid-up. The dividend
paid by Arun Ltd., to its equity shareholders, for the year 2007-08 amounted to
(a) Rs.4,38,750
(b) Rs.5,06,250
(c) Rs.3,03,750
(d) Rs.2,36,250
(e) Rs.5,40,000. (2marks)
70.The difference ranging from profit after tax and dividend is known as
(a) Non-operating profit
(b) Retained earnings
(c) Preference dividends
(d) Operating profit
(e) Depreciation. (1 mark)
71.Sugandhini Industries depreciates its machinery at 10% p.a. on straight-line basis. On April 01, 2007
| Earning: Approval pending. |
