[Solved] Application money should not be withdrawn unless

Application money should not be withdrawn unless

a) Allotment is made

b) Cash book has been prepared

c) Certificate to commence business obtained

d) Certificate of incorporation obtained

Answer: (c) Application money should not be withdrawn unless a certificate to commence business is obtained. Verification means “proving the truth” or “confirmation”. Verification is an auditing process in which the auditor satisfies himself with the actual existence of assets and liabilities appearing in the Statement of Financial Position.

More MCQ and Answers on Auditing

  1. A vacancy caused by resignation of the auditor is filled by
  2. A company auditor can be removed before expiry of his term by
  3. Remuneration of a company auditor is fixed by the
  4. A company auditor, in general has to submit his report to
  5. An auditor of Government company has to submit his report to the
  6. Internal auditor has to submit report to
  7. Auditor should be dutiful like a
  8. Auditor, in general is an
  9. Which of the following percentage of nominal amount of shares should be received with application
  10. While checking allotment, auditor should see that amount

Comments