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(i) Which of the following reserves cannot be utilized for issuing bonus shares?

(A) Revaluation Reserve (B) Dividend Equalization Reserve (C) Capital Redemption Reserve (D) General Reserve

(ii) How many types of bonuses can be issued in a life insurance business?

(A) One type (B) Two types (C) Three types (D) None of the above

(iii) Under a company’s Balance Sheet, where is the installment of the principal amount of a long-term loan payable within the next 12 months recorded?

(A) Non-current Assets (B) Non-current Liabilities (C) Current Assets (D) Current Liabilities

(iv) Which of the following is NOT a condition for the buy-back of securities?

(A) Both fully and partly paid-up securities can be bought back (B) Buy-back must be authorized by the Articles of Association (C) Buy-back must be authorized by passing a special resolution in a general meeting (D) Buy-back should be completed within one year from the date of passing the special resolution

(v) What is the required provision percentage on the unsecured portion of doubtful advances for a banking company?

(A) 25% (B) 40% (C) 50% (D) 100%

(vi) Which of the following statements is correct?

(A) A debenture carries a fixed rate of dividend (B) A company limited by shares may issue irredeemable preference shares (C) Unmarked applications are those that bear the stamp of the underwriter (D) Except as provided in Section 54, a company shall not issue shares at a discount

(vii) Who appoints the Internal Auditor?

(A) Audit Committee (B) Shareholders in General Meeting (C) Extraordinary General Meeting (D) Board of Directors

(viii) In which form is the Cost Audit Report submitted to the Board of Directors?

(A) CRA-1 (B) CRA-2 (C) CRA-3 (D) CRA-4

(ix) A checklist contains instructions to be followed by:

(A) Internal Auditor (B) External Auditor (C) Audit Assistants (D) Employee of the organization

(x) What is the prescribed form for the Secretarial Audit Report?

(A) MR-2 (B) MR-3 (C) MR-4 (D) MR-5

(xi) What does the Permanent Audit File contain?

(A) Copies of management letters (B) Audit programme (C) Analysis of transactions and balances (D) Analysis of significant ratios and trends

(xii) The audit of debentures is covered under which section?

(A) Section 70 (B) Section 71 (C) Section 72 (D) Section 73

Dec 2018 CAA Paper

The Number of MCQs are limited as per ICMAI Past Paper in Syllabus 2016