1. Audit of co-operative societies are conducted:





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MCQ-> Read carefully the four passages that follow and answer the questions given at the end of each passage:PASSAGE I The most important task is revitalizing the institution of independent directors. The independent directors of a company should be faithful fiduciaries protecting, the long-term interests of shareholders while ensuring fairness to employees, investor, customer, regulators, the government of the land and society. Unfortunately, very often, directors are chosen based of friendship and, sadly, pliability. Today, unfortunately, in the majority of cases, independence is only true on paper.The need of the hour is to strengthen the independence of the board. We have to put in place stringent standards for the independence of directors. The board should adopt global standards for director-independence, and should disclose how each independent director meets these standards. It is desirable to have a comprehensive report showing the names of the company employees of fellow board members who are related to each director on the board. This report should accompany the annual report of all listed companies. Another important step is to regularly assess the board members for performance. The assessment should focus on issues like competence, preparation, participation and contribution. Ideally, this evaluation should be performed by a third party. Underperforming directors should be allowed to leave at the end of their term in a gentle manner so that they do not lose face. Rather than being the rubber stamp of a company’s management policies, the board should become a true active partner of the management. For this, independent directors should be trained in their in their in roles and responsibilities. Independent directors should be trained on the business model and risk model of the company, on the governance practices, and the responsibilities of various committees of the board of the company. The board members should interact frequently with executives to understand operational issues. As part of the board meeting agenda, the independent directors should have a meeting among themselves without the management being present. The independent board members should periodically review the performance of the company’s CEO, the internal directors and the senior management. This has to be based on clearly defined objective criteria, and these criteria should be known to the CEO and other executive directors well before the start of the evolution period. Moreover, there should be a clearly laid down procedure for communicating the board’s review to the CEO and his/her team of executive directors. Managerial remuneration should be based on such reviews. Additionally, senior management compensation should be determined by the board in a manner that is fair to all stakeholders. We have to look at three important criteria in deciding managerial remuneration-fairness accountability and transparency. Fairness of compensation is determined by how employees and investors react to the compensation of the CEO. Accountability is enhanced by splitting the total compensation into a small fixed component and a large variable component. In other words, the CEO, other executive directors and the senior management should rise or fall with the fortunes of the company. The variable component should be linked to achieving the long-term objectives of the firm. Senior management compensation should be reviewed by the compensation committee of the board consisting of only the independent directors. This should be approved by the shareholders. It is important that no member of the internal management has a say in the compensation of the CEO, the internal board members or the senior management. The SEBI regulations and the CII code of conduct have been very helpful in enhancing the level of accountability of independent directors. The independent directors should decide voluntarily how they want to contribute to the company. Their performance should decide voluntarily how they want to contribute to the company. Their performance should be appraised through a peer evaluation process. Ideally, the compensation committee should decide on the compensation of each independent director based on such a performance appraisal. Auditing is another major area that needs reforms for effective corporate governance. An audit is the Independent examination of financial transactions of any entity to provide assurance to shareholder and other stakeholders that the financial statements are free of material misstatement. Auditors are qualified professionals appointed by the shareholders to report on the reliability of financial statements prepared by the management. Financial markets look to the auditor’s report for an independent opinion on the financial and risk situation of a company. We have to separate such auditing form other services. For a truly independent opinion, the auditing firm should not provide services that are perceived to be materially in conflict with the role of the auditor. These include investigations, consulting advice, sub contraction of operational activities normally undertaken by the management, due diligence on potential acquisitions or investments, advice on deal structuring, designing/implementing IT systems, bookkeeping, valuations and executive recruitment. Any departure from this practice should be approved by the audit committee in advance. Further, information on any such exceptions must be disclosed in the company’s quarterly and annual reports. To ensure the integrity of the audit team, it is desirable to rotate auditor partners. The lead audit partner and the audit partner responsible for reviewing a company’s audit must be rotated at least once every three to five years. This eliminates the possibility of the lead auditor and the company management getting into the kind of close, cozy relationship that results in lower objectivity in audit opinions. Further, a registered auditor should not audit a chief accounting office was associated with the auditing firm. It is best that members of the audit teams are prohibited from taking up employment in the audited corporations for at least a year after they have stopped being members of the audit team.A competent audit committee is essential to effectively oversee the financial accounting and reporting process. Hence, each member of the audit committee must be ‘financially literate’, further, at least one member of the audit committee, preferably the chairman, should be a financial expert-a person who has an understanding of financial statements and accounting rules, and has experience in auditing. The audit committee should establish procedures for the treatment of complaints received through anonymous submission by employees and whistleblowers. These complaints may be regarding questionable accounting or auditing issues, any harassment to an employee or any unethical practice in the company. The whistleblowers must be protected. Any related-party transaction should require prior approval by the audit committee, the full board and the shareholders if it is material. Related parties are those that are able to control or exercise significant influence. These include; parent- subsidiary relationships; entities under common control; individuals who, through ownership, have significant influence over the enterprise and close members of their families; and dey management personnel.Accounting standards provide a framework for preparation and presentation of financial statements and assist auditors in forming an opinion on the financial statements. However, today, accounting standards are issued by bodies comprising primarily of accountants. Therefore, accounting standards do not always keep pace with changes in the business environment. Hence, the accounting standards-setting body should include members drawn from the industry, the profession and regulatory bodies. This body should be independently funded. Currently, an independent oversight of the accounting profession does not exist. Hence, an independent body should be constituted to oversee the functioning of auditors for Independence, the quality of audit and professional competence. This body should comprise a "majority of non- practicing accountants to ensure independent oversight. To avoid any bias, the chairman of this body should not have practiced as an accountant during the preceding five years. Auditors of all public companies must register with this body. It should enforce compliance with the laws by auditors and should mandate that auditors must maintain audit working papers for at least seven years.To ensure the materiality of information, the CEO and CFO of the company should certify annual and quarterly reports. They should certify that the information in the reports fairly presents the financial condition and results of operations of the company, and that all material facts have been disclosed. Further, CEOs and CFOs should certify that they have established internal controls to ensure that all information relating to the operations of the company is freely available to the auditors and the audit committee. They should also certify that they have evaluated the effectiveness of these controls within ninety days prior to the report. False certifications by the CEO and CFO should be subject to significant criminal penalties (fines and imprisonment, if willful and knowing). If a company is required to restate its reports due to material non-compliance with the laws, the CEO and CFO must face severe punishment including loss of job and forfeiting bonuses or equity-based compensation received during the twelve months following the filing.The problem with the independent directors has been that: I. Their selection has been based upon their compatibility with the company management II. There has been lack of proper training and development to improve their skill set III. Their independent views have often come in conflict with the views of company management. This has hindered the company’s decision-making process IV. Stringent standards for independent directors have been lacking....
MCQ-> The passage given below is followed by a set of three questions. Choose the most appropriate answer to each question.The difficulties historians face in establishing cause-and-effect relations in the history of human societies are broadly similar to the difficulties facing astronomers, climatologists, ecologists, evolutionary biologists, geologists, and palaeontologists. To varying degrees each of these fields is plagued by the impossibility of performing replicated, controlled experimental interventions, the complexity arising from enormous numbers of variables, the resulting uniqueness of each system, the consequent impossibility of formulating universal laws, and the difficulties of predicting emergent properties and future behaviour. Prediction in history, as in other historical sciences, is most feasible on large spatial scales and over long times, when the unique features of millions of small-scale brief events become averaged out. Just as I could predict the sex ratio of the next 1,000 newborns but not the sexes of my own two children, the historian can recognize factors that made2 1 inevitable the broad outcome of the collision between American and Eurasian societies after 13,000 years of separate developments, but not the outcome of the 1960 U.S. presidential election. The details of which candidate said what during a single televised debate in October 1960 Could have given the electoral victory to Nixon instead of to Kennedy, but no details of who said what could have blocked the European conquest of Native Americans. How can students of human history profit from the experience of scientists in other historical sciences? A methodology that has proved useful involves the comparative method and so-called natural experiments. While neither astronomers studying galaxy formation nor human historians can manipulate their systems in controlled laboratory experiments, they both can take advantage of natural experiments, by comparing systems differing in the presence or absence (or in the strong or weak effect) of some putative causative factor. For example, epidemiologists, forbidden to feed large amounts of salt to people experimentally, have still been able to identify effects of high salt intake by comparing groups of humans who already differ greatly in their salt intake; and cultural anthropologists, unable to provide human groups experimentally with varying resource abundances for many centuries, still study long-term effects of resource abundance on human societies by comparing recent Polynesian populations living on islands differing naturally in resource abundance.The student of human history can draw on many more natural experiments than just comparisons among the five inhabited continents. Comparisons can also utilize large islands that have developed complex societies in a considerable degree of isolation (such as Japan, Madagascar, Native American Hispaniola, New Guinea, Hawaii, and many others), as well as societies on hundreds of smaller islands and regional societies within each of the continents. Natural experiments in any field, whether in ecology or human history, are inherently open to potential methodological criticisms. Those include confounding effects of natural variation in additional variables besides the one of interest, as well as problems in inferring chains of causation from observed correlations between variables. Such methodological problems have been discussed in great detail for some of the historical sciences. In particular, epidemiology, the science of drawing inferences about human diseases by comparing groups of people (often by retrospective historical studies), has for a long time successfully employed formalized procedures for dealing with problems similar to those facing historians of human societies. In short, I acknowledge that it is much more difficult to understand human history than to understand problems in fields of science where history is unimportant and where fewer individual variables operate. Nevertheless, successful methodologies for analyzing historical problems have been worked out in several fields. As a result, the histories of dinosaurs, nebulae, and glaciers are generally acknowledged to belong to fields of science rather than to the humanities.Why do islands with considerable degree of isolation provide valuable insights into human history?
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MCQ-> Read the following information and choose the right alternative in the questions that follow.During the cultural week of an institute six competitions were conducted. The cultural week was inaugurated in the morning of 19th October, Wednesday and continued till 26th October. In the span of 8 days six competitions namely debate, folk dance, fash-p, street play, rock band, and group song, were organized along with various other cultural programs. The information available from the institute is: i. Only one competition was held in a day ii. Rock band competition was not conducted on the closing day. iii. Fash-p was conducted on the day prior to debate competition iv. Group song competition was conducted neither on Wednesday nor on Saturday v. None of the competition was conducted on Thursday and Sunday vi. Street Play competition was held on Monday vii. There was gap of two days between debate competition and group song competitionThe cultural week started with which competition?
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MCQ->Consider the following documents.I) Audit note bookII)Audit programmeIII) Audit reportIV)Audit filesThe correct sequence in which an auditor prepares these documents is....
MCQ-> Read passage carefully. Answer the questions by selecting the most appropriate option (with reference to the passage). PASSAGE 1We use the word culture quite casually when referring to a variety of thoughts and actions. I would like to begin my attempt to define cultures by a focus on three of its dictionary meanings that I think are significant to our understanding of the general term-culture. We often forget that it's more essential usage is as a verb rather than as a noun, since the noun follows froth the activities involved in the verb. Thus the verb, to culture, means to cultivate. This can include at least three activities: to artificially grow microscopic organisms; to improve and refine the customs, manners and activities of one's life; to give attention to the mind as part of what goes into the making of what we call civilization, or what was thought to be the highest culture. In short, one might argue that culture is the intervention of human effort in refining and redefining that which is natural, but that it gradually takes on other dimensions in the life of the individual, and even more in the interface between the individual and society. When speaking of society, this word also requires defining. Society, it has been said, is what emerges from a network of interactions between people that follow certain agreed upon and perceptible patterns. These arc determined by ideas of status, hierarchy and a sense of community governing the network. They are often, but not invariably, given a direction by those who control the essentials in how a society functions, as for instance, its economic resources, its technology and its value systems. The explanation and justification for who controls these aspects of a society introduces the question of its ideology and often its form. The resulting patterns that can be differentiated from segment to segment of the society are frequently called its cultures. Most early societies register inequalities, The access of their members to wealth and status varies. The idea of equality therefore has many dimensions. All men and women may be said to be equal in the eyes of god, but may at the same time be extremely differentiated in terms of income and social standing, and therefore differentiated in the eyes of men and women. This would not apply to the entire society. There may be times when societies conform to a greater degree of equality, but such times may be temporary. It has been argued that on a pilgrimage, the status of every pilgrim is relatively similar but at the end returns to inequalities. Societies are not static and change their forms and their rules of functioning. Cultures are reflections of these social patterns, so they also change. My attempt in this introduction is to explain how the meaning of a concept such as culture has changed in recent times and has come to include many more facets than it did earlier. What we understand as the markers of culture have gone way beyond what we took them to be a century or two ago. Apart from items of culture, which is the way in which culture as heritage was popularly viewed, there is also the question of the institutions and social codes that determine the pattern of living, and upon which pattern a culture is constructed. Finally, there is the process of socialization into society and culture through education. There is a historical dimension to each of these as culture and history are deeply intertwined. There is also an implicit dialogue between the present and the past reflected in the way in which the readings of the past changed over historical periods. Every. society has its cultures, namely, the patterns of how the people of that society live. In varying degrees this would refer to broad categories that shape life, such as the environment that determines the relationship with the natural world, technology that enables a control over the natural world, political-economy that organizes the larger vision of a society as a community or even as a state, structures of social relations that ensure its networks of functioning, religion that appeals to aspirations and belief, mythology that may get transmuted into literature and philosophy that teases the mind and the imagination with questions. The process of growth is never static therefore there are mutations and changes within the society. There is communication and interaction with other societies through which cultures evolve and mutate. There is also the emergence of subcultures that sometimes take the form of independent and dominant cultures or amoeba-like breakaway to form new cultures. Although cultures coincide with history and historical change, the consciousness of a category such as culture, in the emphatic sense in which the term is popularly used these days, emerges in the eighteenth century in Europe. The ideal was the culture of elite groups, therefore sometimes a distinction is made between what carne to be called 'high culture' that of the elite, and low culture' that of those regarded as not being of the elite, and sometimes described as 'popular'. Historical records of elite cultures in forms such as texts and monuments for instance, received larger patronage and symbolized the patterns of life of dominant groups. They were and are more readily available as heritage than the objects of the socially lower groups in society whose less durable cultural manifestations often do not survive. This also predisposed people to associate culture as essentially that of the elite.What is the central idea of the passage?
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