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CA Final Overview of Audit of Public Sector Undertakings — practice questions

Explore 100 free Overview of Audit of Public Sector Undertakings questions in CA Final Auditing. Open each question or exercise to read its content, reference answers and available explanation.

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Overview of Audit of Public Sector Undertakings questions and exercises with answers

Showing questions 1–30 of 100.

Under which Article of the Constitution of India is the CAG established?Read the answer and worked solution →Who appoints the Comptroller and Auditor General of India?Read the answer and worked solution →On what ground can Parliament remove the CAG?Read the answer and worked solution →The CAG vacates office at the age of 65 years or after a fixed term, whichever is earlier. What is that term?Read the answer and worked solution →The salary of the CAG is the same as that of which official?Read the answer and worked solution →In which year was the CAG (Duties, Powers and Conditions of Service) Act enacted?Read the answer and worked solution →Which Articles of the Constitution deal with the institution of the CAG?Read the answer and worked solution →In 1976 the CAG was relieved of which function?Read the answer and worked solution →Supplementary CAG audit applies to firms with at least what government equity?Read the answer and worked solution →Section 13 of the CAG Act 1971 requires the CAG to audit expenditure from which fund?Read the answer and worked solution →Which two parliamentary committees discuss CAG reports laid before Parliament?Read the answer and worked solution →After ceasing to hold office, the CAG is not eligible for further office under which authority?Read the answer and worked solution →Can the CAG's salary or pension rights be varied to his disadvantage after appointment?Read the answer and worked solution →The CAG serves as external auditor of which two UN organisations?Read the answer and worked solution →The CAG is the head of which department?Read the answer and worked solution →Which of these does the CAG audit as a duty under the 1971 Act?Read the answer and worked solution →The CAG audits corporations established by or under laws made by which authority?Read the answer and worked solution →In order of precedence the CAG enjoys the same status as whom?Read the answer and worked solution →A public sector undertaking in India is an enterprise in which the government holds at least what stake?Read the answer and worked solution →PSUs owned by the central government are officially called what?Read the answer and worked solution →Which 1956 policy set the framework for PSUs in India?Read the answer and worked solution →In 1951 the government owned how many PSUs?Read the answer and worked solution →Navratna status, giving financial autonomy to PSUs, was first awarded in which year?Read the answer and worked solution →The higher Maharatna category of PSUs was established by the central government in which year?Read the answer and worked solution →A Maharatna unit can decide on investment in a project up to what share of its net worth?Read the answer and worked solution →Into how many categories are Miniratna PSUs divided, offering less extensive financial autonomy?Read the answer and worked solution →PSUs with special non-financial objectives are registered under which section of the Companies Act, 2013?Read the answer and worked solution →In 1969 the Indira Gandhi government nationalised how many of India's largest private banks?Read the answer and worked solution →After which event did the government begin divesting ownership of several PSUs?Read the answer and worked solution →The Planning Commission was formed by a cabinet resolution in which month and year?Read the answer and worked solution →

Worked practice questions

Under which Article of the Constitution of India is the CAG established?

  1. Article 124
  2. Article 315
  3. Article 280
  4. Article 148
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Correct answer: D. Article 148

Article 148 creates the office of the Comptroller and Auditor General as the supreme audit institution.

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Who appoints the Comptroller and Auditor General of India?

  1. The Prime Minister
  2. The Chief Justice of India
  3. The President of India
  4. The Speaker of Lok Sabha
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Correct answer: C. The President of India

The CAG is appointed by the President of India by warrant under hand and seal.

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On what ground can Parliament remove the CAG?

  1. Loss of majority in Lok Sabha
  2. Passing of age 60 years
  3. Adverse remarks in a PAC report
  4. Proved misbehaviour or incapacity
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Correct answer: D. Proved misbehaviour or incapacity

Removal follows the procedure for a Supreme Court judge, needing proved misbehaviour or incapacity.

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