Auditing MCQs

Question 1

The main objective of verification of assets is

Accepted Answer

All of the above

Answer

Physical verification of assets

Answer

Checking the values of assets

Answer

Examining the authority of their acquisition

Question 2

Acontinuous audit is especially needed for

Accepted Answer

Banking business

Answer

Any trading organization

Answer

Smaller concern

Answer

Manufacturing companies

Question 3

In which type of energy audit readily available data is used to analyse the performance?

Accepted Answer

Preliminary audit

Answer

General audit

Answer

Safety audit

Answer

System audit

Question 4

Statement I: Management audit is a part of financial audit. Statement II: Management audit is not compulsory under any law.

Accepted Answer

Only statement II is true

Answer

Only statement I is true

Answer

Both statements are true

Answer

Both statements are false

Question 5

Which of the following is not an advantage of the preparation of working paper?

Accepted Answer

To provide a guide for advising another client on similar issues

Answer

To provide a basis for review of audit work

Answer

To provide a basis for subsequent audits

Answer

To ensure audit work is being carried out as per programme

Question 6

The title of AAS2 issued by Council of ICAI is:

Accepted Answer

Objective and Scope of the Audit of Financial Statements

Answer

Objective and Scope of the Financial Statements

Answer

Objective and Scope of Business of an Entity

Answer

Objective and Scope of Financial Statements Audit

Question 7

Internal audit is undertaken

Accepted Answer

By a person appointed by the management

Answer

By independent auditor

Answer

Statutorily appointed auditor

Answer

By a government auditor

Question 8

An audit program is a program designed to

Accepted Answer

for phased work of audit

Answer

for the arrival and departure of the auditor

Answer

for routine check up

Answer

to inspect the branches of the company

Question 9

An auditor should study and evaluate internal controls to

Accepted Answer

Plan audit procedures

Answer

Determine whether assets are safeguarded

Answer

Suggest improvements in internal control

Answer

Express and opinion