Auditing MCQs

Question 1

Which of the following is NOT part of the process of management audit?

Accepted Answer

Investigating the depreciation method and its application on fixed assets in the company

Answer

Determinations of responsibility center

Answer

Review of performance of each responsibility center

Answer

Review of organizational structure

Question 2

Which of the following is not true with regard to verification of assets?

Accepted Answer

It invoices substantiation of occurrence of transactions

Answer

Its objective is to establish existence, ownership, possession, valuation and disclosure of assets

Answer

The auditor has to form an opinion on different aspects

Answer

All are true

Question 3

Protection of investors' is which object of auditing?

Accepted Answer

Subsidiary

Answer

Social

Answer

Economic

Answer

Primary

Question 4

What time does the audit start-

Accepted Answer

When the accounting work is over

Answer

When book-keeping ends

Answer

When the management goes on leave

Answer

When new partner is admitted

Question 5

Auditing and Assurance Standard-2 (AAS-2) are concerned with

Accepted Answer

Objective and scope of the audit of financial statements

Answer

Vouching

Answer

Valuation of assets and liabilities

Answer

Audit planning

Question 6

The auditor of a company can be removed by the following

Accepted Answer

General meeting of shareholders

Answer

Board of directors

Answer

Company registrar

Answer

Debentureholders

Question 7

If the auditor assesses control risk as high-

Accepted Answer

Document the conclusions

Answer

Documents the reasons along with conclusions

Answer

Perform tests of control

Answer

Perform walk through tests

Question 8

Social Audit Report was first brought out by

Accepted Answer

TISCO

Answer

UTI

Answer

BHEL

Answer

AIR INDIA

Question 9

While observing a client's annual physical inventory, an auditor conducted test counts for certain test counts were higher than the recorded quantities in the client's perpetual records. This situation could be the result of the client's failure to record:

Accepted Answer

Sales returns

Answer

Purchase returns

Answer

Goods with consignor

Answer

Purchase discounts