MCQ for CA Final Audit - Chapter 14 LIABILITIES OF AUDITOR

Sample Multiple Choice Questions (MCQ's) for CA Final - Paper 3 - Advanced Auditing and Professional Ethics - Chapter 14: LIABILITIES OF AUDITOR - For Practice relevant for May/Nov 23 Examinations

 

Q:1 Regarding civil liability under Companies Act, 2013:              

 

  1. auditors may be fined for violating confidentiality.
  2. auditors may be held liable to pay financial penalties.
  3. auditors may have their bonuses confiscated.
  4. auditors may get jail terms.

Answer: 2

 

Q:2 Regarding criminal liability under statutory law:     

 

  1. auditors may be held liable to pay financial penalties.
  2. auditors may be imprisoned for lack of professional competence and due care.
  3. auditors may be fined for violating confidentiality.
  4. auditors may get jail terms.

Answer: 4

 

Q:3 Legal liability for the auditor is based on all the following except:  

 

  1. Common law.
  2. Constructional liability under statutory law.
  3. Liability for members of professional accounting organizations.
  4. Civil liability under statutory law.

Answer: 2

 

Q:4 X Ltd. has issued its prospectus for raising capital, which includes a statement which is untrue or misleading in form or context in which it is included. It was found that such statement was made with authorization of Mr. X, who is Chartered Accountant and engaged with the company to manage their public issue.

 

  1. X is liable to be punished u/s 147 of Companies Act, 2013.
  2. X is liable to be punished u/s 447 of Companies Act, 2013.
  3. X is liable to be punished under sections 147 as well as 447 of Companies Act, 2013.
  4. X is not liable for any punishment.

Answer: 2

 

Q:5 Professional negligence may be defined as:              

 

  1. any failure to perform a duty according to accepted professional standards, which may or may not cause loss, damage or detriment to the party who had engaged a professional.
  2. any failure to perform a duty according to accepted professional standards, which has resulted in causing revenue losses to the government.
  3. any failure to perform a duty according to accepted professional standards, which has resulted in some loss, damage or detriment to the party who had engaged a professional.
  4. none of the above.

Answer: 3

 

Q:6 As per Sec. 447 of Companies Act, 2013, a person shall be punishable with imprisonment for a term which shall not be less than 6 months but which may extend to 10 years, if he is found to be guilty of fraud, involving an amount of:         

 

  1. atleast ₹ 10 lakh or 1% of the turnover of the company, whichever is lower.
  2. atleast ₹ 10 lakh or 1% of the turnover of the company, whichever is higher.
  3. atleast ₹ 10 lakh or 5% of the turnover of the company, whichever is lower.
  4. atleast ₹ 10 lakh or 5% of the turnover of the company, whichever is higher.

Answer: 1

 

CA Final - Paper 3 - Advanced Auditing and Professional Ethics - Chapter 15   

 

To get back to the Chapterwise MCQ List Page      

 

Hope you can find this article helpful. If you did like the content then Share it with your friends who are preparing for CA Final Exams or who will be giving their CA Final Exams in the near future.