Auditing MCQs

Question 1

Which of the following statements is correct?

Accepted Answer

Valuation is a part of verification

Answer

Verification is a part of the valuation

Answer

Verification has nothing to do with valuation

Answer

Auditor is a valuer

Question 2

Management audit implies

Accepted Answer

Evaluating the performance of various management processes and functions

Answer

Audit undertaken on behalf of the management

Answer

Audit undertaken on behalf of the government to punish the management

Answer

Compulsory audit

Question 3

Which of the following is not corroborative evidence?

Accepted Answer

Worksheet supporting consolidated financial statements

Answer

Minutes of meetings

Answer

Confirmations from debtors

Answer

Information gathered by auditor through observation

Question 4

Internal audit is helpful in

Accepted Answer

Detection of errors and frauds

Answer

Prevention of errors and frauds

Answer

Auditing items in depth

Answer

None of the above

Question 5

While vouching, how will the auditor ensure that all credit sales transactions have been recorded by the entity?

Accepted Answer

Both A and B

Answer

Examining cut off points

Answer

Matching entries in the sales book against renumbered sales invoices and goods' outward notes

Answer

Counting the number of invoices and matching the number with entries on sales book

Question 6

The date on auditor's report should not be

Accepted Answer

Earlier than the date on which the accounts are approved by the management

Answer

The data of AGM

Answer

Later than the date on which the accounts are approved in board's meeting

Answer

Both A and B

Question 7

Payment for wage should be vouched with the help of:

Accepted Answer

Wage sheets

Answer

Piece work statement

Answer

Minutes book

Answer

Bank pass book

Question 8

Checking the valuation of assets is a part of:

Accepted Answer

Verification

Answer

Routine Checking

Answer

Vouching

Answer

Internal check

Question 9

In how many days will the auditor write to the Registrar of companies regarding the acceptance of his appointment

Accepted Answer

30 days

Answer

7 days

Answer

10 days

Answer

20 days