C:-Intemal 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

B:-Checking

C:-Auditing

D:-None of the above
Correct Answer:- Option-A
:-Misfeasance is a of a Company Auditor.
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 faimess of the balance sheet and profit
and loss account of the concem, 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
B:-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 ‏۳ذ6‎
‎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
C:-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
B:-Income of spouse