C:-Internal Control
D:-External Audit
Correct Answer:- Option-B

Question77:- is a technical term which refers to the inspection by the auditor of documentary evidence supporting
and substantiating a transaction.
A:-Vouching

-Checking
C:-Auditing
D:-None of the above
Correct Answer:- Option-A
Question78:-Misfeasance is a of a Company Auditor.
A:-Civil Liability
B:-Criminal Liability
C:-Statutory Duty
D:-Contractual Duty
Correct Answer:- Option-A
Question79:-Among the following statements with regard to redeemable preference shares is not true.
A:-The articles of association of the company should provide for the redemption of these shares
B:-They can be redeemed only out of profits of the company which would be otherwise available for dividend
C:-Fully and partly paid shares can be redeemed
D:-Any premium paid on the redemption must be paid either out of the company's share premium account or out of the
Profits of the company
Correct Answer:- Option-C

Question80:-When an auditor is satisfied with the affairs of the company and the fairness of the balance sheet and profit
and loss account of the concern, he gives a report.

A:-Unqualified Report

B:-Clean Report

C:-Qualified report

D:-Both (1) or (2)

Correct Answer:- Option-D
Question81:-Municipal taxes in the following cases are deductible from the gross annual value of a property under sec. 23
A:-Municipal taxes paid during the year for the current year
-Municipal taxes paid during the year for the previous year
C:-Municipal taxes paid during the year for the future period
D:-All of the above
Correct Answer:- Option-D

Question82:-When an assessee uses an asset which was earlier used for scientific research related to business, the cost of
asset will be equal to

A:-The amount left after reducing the cost of research

B:-The amount left after reducing the amount allowed as deduction for depreciation earlier
C:-The amount of cost including the installation cost

D:-None of the above

Correct Answer:- Option-B

Question83:-The transfer of one or more undertakings or assets for a lump-sum consideration without valuing the assets
and liabilities individually is known as ~

A:-Slump Sale
B:-Pooling Purchase
C:-Bulk Sale
D:-Both (1) and (3)
Correct Answer:- Option-A
Question84:-Interest on income by way of winnings from horse race is tax deducted at source @ 30% in the following case.
A:-The person is a resident in India
B:-The person is not a resident in India
:-Any other person
D:-All of the above
Correct Answer:- Option-D

Question85:-By virtue of sections 60 to 65 of the income tax act, clubbing of income is not done under the following
situation.

A:-Income from assets transferred with a condition of revocation
:-Income of spouse