18/11/2022, 12:33 Audit of Autonomous Bodies

MCQ-Adda

Audit of Autonomous Bodies

1. One of the essential requirements of Section 20(1) is that audit can be

entrusted to the CAG

A. Only in public interest

B. Only if the Central or State Government feels the necessity to

entrust the audit work to CAG

C. Only if the president or governor feels that autonomous body is

not well managed and there are sufficient ground justifying the

entrustment of audit to CAG

D. Only if the president or governor of the State is of the opinion

that no other audit would be sufficient to serve the legislative

control over the autonomous body

2. Which among the following provisions empower C&AG to conduct

audit of bodies or authorities?

A. Section 14 & 15 of the DPC Act

B. Section 14, 15, 19 & 20 of the DPC Act
C. Section 14, 19 & 20 of the DPC Act
D. none of the above
3. Which of the following is NOT a provision of the CAG's DPC Act that

empowers it to take up the audit of autonomous bodies?

A. Section 13
B. Section 14
C. Section 15

D. Section 20
4. Which among the following is incorrect as to Section 14 audit?
A. If the grant or loan is from outside the consolidated fund, audit
under section 14 is not possible
119
SHARES

https://www.mcqadda.com/2017/10/audit-of-autonomous-bodies.html 1/10
18/11/2022, 12:33 Audit of Autonomous Bodies

MCQ-Adda B. Payments of purely deposit nature should also be regarded as

expenditure

C. The expenditure incurred on purchase of raw material, finished

goods, disbursement of loans is treated as expenditure in respect
of institutions running business
D. none of the above

5. The objectives of audit of accounts or audit of receipt & expenditure of

bodies and authorities under section 14, 19 and 20 of the Act are:
A. To check that transactions comply to relevant laws, rules and
regulations
B. To conduct the audit with the purpose of certification of annual
accounts

C. To conduct performance audit to assess economy, efficiency and

effectiveness of various activities/programmes undertaken by
these bodies.
D. All of the above
6. In practice the certification of annual accounts is undertaken under
which of the following provisions of CAG's DPC Act?
A. Section 19 and Section 20
B. Section 20 only

C. Section 13 and Section 14

D. Section 14 and Section 15
7. The objectives of audit of Autonomous Bodies by CAG is to conduct
A. compliance audit
B. financial audit
C. Performance audit
D. all of the above
8. The parameter for examining the justification for Section 14(2) or

20(2) is
A. control by the sanctioning agency is adequate
B. the state of accounts is known to be satisfactory

119
SHARES

https://www.mcqadda.com/2017/10/audit-of-autonomous-bodies.html 2/10
18/11/2022, 12:33 Audit of Autonomous Bodies

MCQ-Adda C. there is arrangement for audit by an agency outside the control

of the institution
D. these are persistent losses in respect of institutions
undertaking manufacturing or trading activities
9. In cases where CAG conducts super imposed audit
A. It is also required to certify the accounts
B. It is also required to certify the accounts if the chartered
accountant who conducted the audit were appointed on the

advise of the CAG

C. It is also required to certify the accounts if the chartered
accountant who conducted the audit were appointed from the
panel of auditors prepared by the CAG
D. Certification of accounts need not be done by CAG in cases
where CAG is not the sole auditor
10. The restriction with respect to right of access to the books and
accounts under Section 15(2) is

A. the autonomous body is not a foreign state or an international

organization
B. the President/Governor/Administrator relieve the CAG in public
interest

C. the law under which the corporation is established provides for

audit by someone other than CAG

D. All of the above

11. Which is incorrect as to audit of autonomous body under Section 15

A. It would be preferable to defer examination of accounts of the

until its accounts are audited and certified

B. Grants given for maintenance, purchase of specific items like

land & building shall not be treated as specific purpose grants

C. The objections should not be conveyed or corresponded with the

autonomous body directly

D. none of the above

12. Audit under Section 19(3) of the DPC Act can be entrusted to CAG 119
SHARES

https://www.mcqadda.com/2017/10/audit-of-autonomous-bodies.html 3/10
18/11/2022, 12:33 Audit of Autonomous Bodies

MCQ-Adda A. of a corporation established by a state or Union Territory Law

B. Not of a corporation established under a state or Union Territory

Law

C. neither (a) nor (b)

D. none of the above

13. Which among the following is incorrect as to the requirement under

Section 19(3)

A. the decision to entrust audit will be of government

B. It is obligatory that the autonomous body should concur with

the decision

C. It is necessary to convey to the Government the terms and

conditions under which audit can be undertaken by CAG

D. None of the above

14. Audit under Section 20(1) is taken up

A. for the purpose of certification of annual accounts

B. the certification of accounts also includes performance audit

C. To issue separate Audit, Report containing only comments on

accounts’
D. All of the above

15. The underlying assumption while preparing the common format of

accounts is

A. Accrual system of accounting

B. The entity is viewed as a going concern

C. both (a) and (b)

D. none of the above

16. Find out the correct statement

A. The going concern has the intention of curtailing materially the

scale of its operation

B. The transactions and events shall be governed by merely by the

legal form in the Balance Sheet

C. The excess of the provision over the amount of reasonably

anticipated loss is treated as a reserve 119
SHARES

https://www.mcqadda.com/2017/10/audit-of-autonomous-bodies.html 4/10
18/11/2022, 12:33 Audit of Autonomous Bodies

MCQ-Adda D. none of the above

17. Revenue shall not be recognized unless

A. no significant certainty exists regarding the amount of the

receivable consideration

B. the related performance has been achieved

C. it is not reasonable to expect realization and ultimate collection

of the amount of revenue

D. none of the a bove

18. What is the common assertion underlying income statement items

and Balance Sheet items

A. occurrence

B. ownership

C. Regularity
D. Disclosure

19. Find out the incorrect statement

A. Materiality should be determined with reference to overall

audit assurance
B. Risk is concerned with the likelihood of error

C. materiality is concerned with the extent to which we can tolerate

error

D. none of the above

20. Match the following

(A) will not be detected on a timely basis by the
(A) Inherent Risk
internal controls
(B) Internal
(B) is the inverse of overall audit assurance
Control Risk
(C) Dection Risk (C) is the material error occurring in first place

(D) Overall Audit(D) is the inverse of the required assurance level

Risk from substantive tests

A. A-B;B-A;C-D;D-C

B. A-C;B-A;C-D;D-B
C. A-C;B-D;C-B;D-A 119
SHARES

https://www.mcqadda.com/2017/10/audit-of-autonomous-bodies.html 5/10
18/11/2022, 12:33 Audit of Autonomous Bodies

MCQ-Adda D. A-B;B-D;C-A;D-C

21. System based audit (SBA) is an audit approach

A. which may be used by an external auditor to express an opinion

on the financial statements

B. where the auditor decides that he can not place some reliance on
the internal controls

C. where the auditor do more substantive testing if he took no

assurance at all from auditee’s internal control

D. none of the above

22. Which among the following is the essential feature of statistical
sampling
A. sampling should be predictable

B. The sample results need not be in accordance with the

probability theory
C. the sample items should have known probality of selection

D. none of the above

23. Match the following w.r.to various types of sampling
(A) the sample is chosen by selecting a random
(A) Stratified
starting point and then picking every sample
sampling
interval
(B) Cluster (B) sampling assigns higher inclusion probability
sampling of selection for population units with higher sizes
(C) Probability (C) the target population is first divided into

proportional to size mutually exclusive and collectively

(PPS) exhaustive clusters
(D) Systematic(D) is a two-step process in which the population

sampling is partitioned into sub- populations

A. A-D;B-A;C-B;D-C
B. A-D;B-C;C-B;D-A
C. A-B;B-A;C-D;D-C

D. A-C;B-D;C-B;D-A
24. What is true as to Analytical Review as substantive audit techniques 119
SHARES

https://www.mcqadda.com/2017/10/audit-of-autonomous-bodies.html 6/10
18/11/2022, 12:33 Audit of Autonomous Bodies

MCQ-Adda A. It is a substantive procedure used to reduce the overall audit risk

B. It is a form of deductive reasoning

C. to detect monetary errors in the financial statements given that

they have occurred

D. All of the above
25. The certificate that the auditor should obtain from the management
is

A. Stock in transit
B. contingent liabilities
C. work in progress with processors
D. all of the above

26. The separate Audit Reports (SAR) of Autonomous Bodies should

contain
A. Introduction

B. Comments on accounts
C. Impact of comments on accounts
D. All of the above
27. In addition to ‘comments on accounts’ the SAR may include

A. cases where assurances for rectification are fulfilled after a

couple of years
B. corrections/rectifications carried out at the instance of audit

C. compliance of accounting standards/instructions contained in

the common Format of Accounts
D. none of the above
28. Management letter includes

A. Errors in annual accounts that are not considered material

B. Reconciliation between the balances as per broadsheets and as
reflected in the accounts

C. classification errors within the accounting head where

management has assured rectification
D. All of the above

119
SHARES

https://www.mcqadda.com/2017/10/audit-of-autonomous-bodies.html 7/10
18/11/2022, 12:33 Audit of Autonomous Bodies

MCQ-Adda
29. Find out the incorrect statement w.r.to performance audit of
regulatory bodies

A. The audit of accounts of Electricity Regulatory Commissions and

Audit Report thereon would include performance audit
B. The orders passed by the commissions in exercise of
quasijudicial functions would not be within the scope of Audit

C. The decisions of the Authority that are appealable to the

Appellate tribunal are subject to audit by CAG
D. none of the above

30. The broad objective of quality assurance is to ensure

A. controls are in place at all stages of the audit cycle including
planning, execution and reporting
B. controls are properly implemented

C. inbuilt mechanism to constantly review and update the control

exists
D. All of the above

Safety First Training Ltd 22 January 2018 at 12:46

Good blog. Loved the information I generated about compliance
audit . It provides occupational health and safety audit certificate.
REPLY

anvianu 19 April 2019 at 12:50

nebosh course in chennai
safety course in chennai
offshore safety course in chennai
fire and safety course in chennai
REPLY

Orderart 4 April 2022 at 15:49

I’m genuinely impressed with your knowledge. You have shared
good knowledge by this blog. It was a really attractive blog.
Please keep sharing your post with us.Menulog alternative.
REPLY 119
SHARES

https://www.mcqadda.com/2017/10/audit-of-autonomous-bodies.html 8/10
18/11/2022, 12:33 Audit of Autonomous Bodies

MCQ-Adda evolvsuper 20 May 2022 at 10:35

Your blog is very valuable which you have shared here about
SMSF Audit Software I appreciate the efforts which you have put
into this blog and also it is a gainful blog for us. Thank you for
sharing this here.
REPLY

Enter comment

Tags

SAS (31) CPD1 (23) CPD (13) CPD2 (7) PC12 (7) PC24 (7)

C1 (6) PC11 (6) PC23 (6) PC9 (6)

SHOW MORE

119
SHARES

https://www.mcqadda.com/2017/10/audit-of-autonomous-bodies.html 9/10
18/11/2022, 12:33 Audit of Autonomous Bodies

MCQ-Adda
Popular Posts

Absorption and Marginal Costing

C4: Public Finance for CPD2

Sampling and Sample Design

Financial Planning and Capital Structure

Sales of Goods Act 1930

Information Technology Audit

Information Technology Act 2000

Indian Contract Act

Capital Budgeting

The Arbitration & Conciliation Act, 1996

Powered by Blogger

119
SHARES

https://www.mcqadda.com/2017/10/audit-of-autonomous-bodies.html 10/10