Auditing MCQs

Question 1

The subsidiary voucher produced in the absence of primary voucher is called

Accepted Answer

Collateral voucher

Answer

General voucher

Answer

Note Book voucher

Answer

Counterfoil

Question 2

In India, balance sheet audit is synonymous to:

Accepted Answer

Annual audit

Answer

Continuous audit

Answer

Detailed audit

Answer

Statutory audit

Question 3

Propriety audit refers to

Accepted Answer

examination of need and rationale of expenses

Answer

verification of accounts

Answer

examination of accounts of sole proprietory institutions

Answer

audit of government companies

Question 4

In case the auditor gives a disclaimer of opinion in the audit report which of the following paragraph(s) of a standard unqualified audit report are modified?

Accepted Answer

Scope and opinion paragraphs

Answer

Scope paragraph

Answer

Opinion paragraph

Answer

Introductory, scope and opinion paragraph

Question 5

Which one of the following is not considered as relevant voucher while vouching cash sales?

Accepted Answer

Sales book

Answer

Copy of cash memo

Answer

Abstract of salesman

Answer

Cashier's summaries

Question 6

When restrictions that significantly affect the scope of the audit are imposed by the client, the auditor generally should issue which of the following opinion?

Accepted Answer

Qualified opinion

Answer

Disclaimer of opinion

Answer

Adverse opinion

Answer

Unqualified report with 'an emphasis of matter' paragraph

Question 7

Every voucher should be signed by

Accepted Answer

Responsible Official

Answer

Accounts Officer

Answer

Accountant

Answer

Manager

Question 8

Which of the following statements is, generally, correct about the reliability of audit evidence?

Accepted Answer

Effective internal control system provides reliable audit evidence

Answer

To be reliable, evidence should conclusive rather than persuasive

Answer

Evidence obtained from outside sources routed through the client

Answer

All are correct

Question 9

Audit in depth is synonymous for:

Accepted Answer

Detailed audit

Answer

Complete audit

Answer

Completed audit

Answer

Final audit