Auditing MCQs

Question 1

The beneficiaries of auditing include(s)

Accepted Answer

All of these

Answer

Company

Answer

Bankers

Answer

Sole proprietorship

Question 2

A company auditor can be removed before the expiry of his term by

Accepted Answer

Shareholders

Answer

Board of directors

Answer

Central government

Answer

State government

Question 3

In order to vouch, which of the expenses the auditor will examine in bill of entry?

Accepted Answer

Customs

Answer

Income tax

Answer

GST

Answer

VAT

Question 4

Safety audit is mandatory for

Accepted Answer

Hazardous industries

Answer

Manufacturing industries

Answer

Textile industries

Answer

Mining industries

Question 5

The auditor is most likely to examine related party transactions very carefully while vouching:

Accepted Answer

Credit purchases

Answer

Credit sales

Answer

Sales returns

Answer

Cash purchases

Question 6

Investigation is conducted:

Accepted Answer

For some specific purpose

Answer

As a good inquiry

Answer

To establish the correctness of the accounting records

Answer

As a constitutional requirement

Question 7

The reason(s) of qualified report is/are

Accepted Answer

All of the above

Answer

Violation of generally accepted principles of auditing

Answer

Violation of accounting principles

Answer

Lack of adequate information and explanations

Question 8

Checking the date of voucher on the voucher during vouching, mainly helps the auditor to obtain evidence that

Accepted Answer

The transaction relates to current year

Answer

The transaction has taken place

Answer

The transaction is genuine

Answer

The transaction is legal

Question 9

Interim audit refers to

Accepted Answer

Audit work to find and check the interim profits of a company

Answer

Continuous examination of accounts

Answer

Intermittent examination of accounts

Answer

Carrying on audit for bonus purpose at the end of the year