Welcome to Hirelink Evaluation test for CA

1. Audit Test

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1. XYZ Pvt Ltd is engaged in the business of newspaper and radio broadcasting. It operates through different brand names. During the FY 2015-16 it incurred substantial amount on external trade, business communication and branding expenses by participation in various corporate social responsibility initiatives. The Company expects to benefits by this expenditure by attracting new customers over a period of time and accordingly it has capitalized the same under brand development expenses and intends to amortize the same over the period in which it expects to benefit to flow. Same can be treated in books of accounts as

 
 
 
 

2. XYZ Ltd gave donation of Rs. 50,000 each to charitable society running a school and a trust set up for service of blind (charitable organisations are not related to business of company). Auditor has to give unqualified opinion if :

 
 
 
 

3. XYZ Pvt Ltd had a paid up capital of Rs. 20 Crores divided into equity shares of Rs. 10 each as on 31.03.2015. During the financial year   2015-16 company issued bonus shares in the ratio of 1:1. The Net profits after tax for the years 2014-15 and 2015-16 are Rs. 10 Crores and Rs. 15 Crores respectively. The EPS for two years will be ?

 
 
 
 

4. In determining the level of materiality for an audit, what should not be considered?

 
 
 
 

5. XYZ Pvt Ltd has defaulted in repayment of dues to financial institution during F.Y 2015-16 and same remain outstanding as on 31.03.2016. However Company settled total outstanding including interest in April 2016 subsequent to year end and before completion of audit for F.Y 2015-16.

 
 
 
 

6. In which case CARO 2016 is not applicable on XYZ Pvt Ltd

 
 
 
 

7. .…..the audit risk,….. the materiality and ……the audit effort

 
 
 
 

8. An auditor obtains knowledge about a new client’s business and its industry to

 
 
 
 

9. XYZ Pvt Ltd made payment of two invoices of Rs. 14,000/- each (totalling Rs. 28,000/-) in cash to Rahul on account of leasing of goods carrier on 05th November 2016 amount is 

 
 
 
 

10. An asset become Non Performing Asset for bank when –

 
 
 
 

Question 1 of 10

Hirelink is a professional skill development and recruiting Company that specializes in Accounting and Finance Sector.

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