1. A company secretary is a MUST in which of the following organizations?
2. The first-ever auditors are appointed by which of the following parties?
3. Select the false statement from the following with regards to a secretary.
4. Which of the following parties associated with a company may NOT act as its company secretary?
5. By which of the following resolutions, can an auditor be removed?
6. Which of the following is NOT a duty of secretary?
7. To which ONE of the following organizations an exemption from audit is given?
8. What is the principal statutory duty of an auditor from the following?
9. By which of the following TWO ways, the auditors depart the office?
A. By declining reappointment.
B. By a special resolution at the general meeting.
C. By giving written notice to the company delivered to the registered office.
D. Removing an auditor by written resolution in a private company.
10. The auditor must investigate the company’s accounts and form an opinion as to which of the following?
11. Rex is an auditor at Gem Ltd. The financial statements that he had recklessly prepared for the year 2015 contained misleading and false information to a material extent. What will the above offence of Rex cause him?
12. The notice of removing the auditor must be sent to the Registrar within how many days?
13. The legislation may disqualify which of the following from being an auditor of a limited company?
14. Which of the following is not a recognised qualification that allows an individual to act as a company secretary?
15. Auditors of private companies are deemed automatically reappointed unless in which of the following TWO situations apply?
A. The auditor was appointed by the shareholders.
B. The articles require formal reappointment.
C. Directors have resolved that; auditors should not be appointed for the forthcoming year as the company is likely to be exempt from audit.
D. Members holding 50% of the voting rights serve notice that the auditor should not be reappointed.
16. The Companies Act provides ________ for auditors to enable them to carry out their duties. Which of the following suits the blank?
17. Which TWO of the following are criteria that a private company must meet to be exempt from audit?
A. Turnover less than £10.2 million.
B. Balance sheet total less than £3.1 million.
C. Number of employees 50 or fewer.
D. Total long-term debt less than £4.5 million.
18. Which TWO of the following duties wouldn’t a company secretary expect to perform?
A. Establishing and maintaining the company's statutory registers.
B. Filing accurate returns with the Registrar of Companies
C. Hiring and firing directors
D. Reviewing the work of the company auditor
19. Select the statement/s which is/are true.
i. Max plc is a retailer of cosmetics. Last year its turnover was £5 million and its balance sheet total was £3.4 million. As a result, Max plc is exempted from audit.
ii. A non-profit-making public sector body, is subject to audit and is mandatory.
20. Select the correct statement/s with regards to resignation of auditors.
If the auditors have deposited a statement of circumstances, they may:
i. Requisition a general meeting to explain their reasons.
ii. Attend and speak at any meeting where appointment of successors is to be discussed.
21. A company must inform the Secretary of State if it has failed to appoint an auditor within how many days of circulating its accounts?
22. Under UK Corporate Governance guidelines, the company secretary should NOT do which of the following?
23. Which of the following is NOT a power/right of the auditor?
A. Access the books at specific times only.
B. Speak at the general meeting.
C. To check whether the accounts are in accordance with companies Act 2006.
D. Receive explanations from company’s officers and employees that fit for the performance of his duties.
24. There are certain parties who aren’t eligible to be appointed as company auditors. Which TWO of the following parties do belong to such parties?
A. A shareholder of the company.
B. An officer of the company being audited.
C. A debtor or creditor of the company.
D. A partnership in which such a person is a partner.
25. Which of the following is/are true?
i. A company whose auditor resigns is required to inform the registrar. Failure to do so is an offence.
ii. The directors have 21 days to send out a notice convening a meeting for the resigning auditor to explain his explanation of the circumstances.
iii. The above meeting must be held within 14 days of the notice.
26. ‘A departing auditor is required to make a statement and to deposit it with the company’. Select from the following which is/are correct regarding the above statement.
A. For quoted companies, this statement must explain the circumstances surrounding his departure.
B. For certain private companies, this statement must explain the circumstances surrounding his departure is mandatory.
C. For public companies (except for quoted), the statement should state that there are no such circumstances if he thinks there is no need to bring it to the attention of the shareholders or creditors.
D. The company is obliged to circulate the statement to everyone to whom it needs to send the annual accounts within 28 days of receiving it.
27. Select the TWO correct statements from the following in relation to statutory obligations of secretaries.
A. Ensuring that accounting records meet statutory requirements.
B. State whether or not the directors' report is consistent with the accounts.
C. The information in the directors' remuneration report is consistent with the accounts.
D. Establishing and maintaining the company's statutory registers.