www.cag.gov.in Commercial Audit Question Paper : Office Of The Comptroller And Auditor General Of India

[mariammal]

Model Multiple Choice Questions:
PC-26: Commercial Auditing (Commercial Audit) (PC-26)

Question Number:1
Minimum number of meetings to be held by the Board of Directors of any Company as per the
Companies Act is
A four
B five
C six
Ans A

http://www.cag.gov.in/html/EXAM/sample_paper/sas.htm
http://www.cag.gov.in/html/EXAM/sample_paper/pc26.pdf

Question Number:2
An auditor examining the records of a NBFC, which is an investment company not accepting public
deposits availing ceratin concessions from RBI, would examine and report on the following aspects
I. whether the board of directors has passed a resolution for not acceptance of public deposits
II. whether the company has accepted any public deposits during the relevant period/year
III. whether the company has, through a board resolution, identified the group/holding/subsidiary
companies
IV. whether the company has continued to hold securities of group or holding or subsidiary companies
as long term investments and has not traded in those investments during the accounting year/period
A I correct
B I, III correct
C II, III correct
D All are correct
Ans D
Question Number:3
Minimum number of Directors in Audit Committee is
A three
B four
C five
Ans A
Question Number:4
Control activities are the policies and procedures established to address risks and to achieve the
Entity's objectives. These do not include:
A Detective control activities
B Preventive control activities
C Punitive control activities
D All of the above
Ans C
Question Number:5
Auditor confirmation of A/P balances may not be necessary because
A This is a duplication of cutoff tests
B A/P balances may not be paid before the audit is completed
C correspondence with the audit client's attorney will reveal all legal action by vendors for nonpayment.
D There is likely to be other reliable external evidence to support the balances
Ans C