Auditing MCQs

Question 1

The essential documents for verification of freehold land

Accepted Answer

Both A and B

Answer

Rights statement

Answer

Receipt of contractor

Answer

Lease receipt

Question 2

Which of the following can not be appointed as cost auditor?

Accepted Answer

All of the above

Answer

Employee of company

Answer

A company

Answer

Financial audit of company

Question 3

Auditing begins where . . . . . . . . ends.

Accepted Answer

Accounting

Answer

Selling

Answer

Inventory

Answer

Business

Question 4

Final audit implies

Accepted Answer

Audit of accounts at the end of the year

Answer

Checking accounts to reveal frauds

Answer

Audit for submitting report immediately at the end of the year

Answer

Audit of banking companies

Question 5

The financial auditor submits the report to the

Accepted Answer

Shareholders

Answer

Board of directors

Answer

Debtors

Answer

Employees

Question 6

The objective(s) of verification of assets is/are

Accepted Answer

All of the above

Answer

To examine the existence of assets

Answer

To examine the ownership of assets

Answer

Proper explanation of mortgage or charge

Question 7

Which of the following is not a function of an auditor?

Accepted Answer

Preparing final accounts

Answer

Checking errors and frauds

Answer

Correcting errors and frauds

Answer

Vouching with original documents

Question 8

To verify cash transactions, what is necessary?

Accepted Answer

All of the above

Answer

System of internal control

Answer

Check all transactions

Answer

Documentary evidence for every transaction

Question 9

The examination of cost accounts and statements is called

Accepted Answer

Cost audit

Answer

Complete audit

Answer

Interim audit

Answer

Internal audit