How can a company’s external auditor be removed by the members?
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1 .Under the Companies Act 2006, which of the following is a correct statement about theposition of shadow directors?
A It is illegal to act as a shadow director B Particulars of shadow directors must be registered with the Registrar of Companies C A shadow director has the same obligations as a de facto director of the company
2 .Which of the following statements about advice given by an auditor is correct?(1) Auditors who provide negligent advice may be held liable for breach of contract bythe company which appointed them.(2) Auditors who provide negligent advice to the company which appointed them maybe held liable for breach of contract by the company and its individual shareholders.(3) Auditors who provide advice to an individual and know how the advice will be usedmay be held liable if they are negligent in giving that advice.
A 1 only B 1 and 2 only C 1 and 3 only D 2 and 3 only
3 .Who is legally obliged to maintain a company’s appropriate accounting records?
A The auditor B The company secretary C The finance director D The directors
4 .Which of the following statements is correct in relation to company secretaries?
A A company secretary must be a natural person B The company secretary cannot also be a director of the same company C All companies must appoint a secretary D All company secretaries must be qualified by examination or experience
5 .Which of the following is a routine duty of a company secretary?
A Maintaining order at general meetings B Setting the agenda for board meetings and general meetings C Liaison between the company and the Registrar of Companies
7 .Dev is the company Secretary of LLL plc. He entered into a contract to rent cars for use bythe sales team. However, the directors of the company objected to what they considered to bean excessive price and refused to pay.Can the car rental company enforce the payment?
A The car rental company will not be able to enforce the payment as the board ofdirectors of LLL plc have refused to sanction it B The car rental company can successfully claim that Dev had apparent authority toenter into the contract as he showed his business card before signing it C The car rental...
8 .Under the Companies Act 2006, which of the following is duty of an auditor?
A To prevent and detect fraud in the client company B To check all transactions of the client company C To report on the financial statements of the client company
9 .Under the provisions of the Companies Act 2006, to be eligible to be an auditor, anindividual must be a member of which of the following?
A A professional institute or association B A self-regulatory body C A recognised supervisory body
10 .Cabbit Ltd buys organic vegetables from farmers and resells them to retail outlets.Which of the following accounting records must Cabbit Ltd maintain in order to complywith the Companies Act 2006?(1) A record of its assets and liabilities.(2) A statement of stock held at the end of each financial year.(3) Daily entries of income and expenditure.
A 1 and 2 only B 1 and 3 only C 2 and 3 only D All of the above
