Auditing MCQs

Question 1

If in a company, the work of one person is complementary to the work of another, then it is related to

Accepted Answer

Internal check

Answer

Internal control

Answer

Internal audit

Answer

None of the above

Question 2

Which of the following is NOT a reason for fraud?

Accepted Answer

Keeping voucher for monetary transactions

Answer

Absence or laxness in internal control

Answer

Overstatement of stock

Answer

Understatement of purchases

Question 3

Test checking should not be applied to-

Accepted Answer

Cash Book

Answer

Sales Book

Answer

Purchase Book

Answer

Bills Book

Question 4

Which of the following is a primary voucher:

Accepted Answer

Counterfoil

Answer

Invoice

Answer

Carbon copy of receipts

Answer

None of the above

Question 5

Which of the following audits is exclusively done by Company Secretary?

Accepted Answer

Secretarial audit

Answer

Statutory Audit

Answer

Cost Audit

Answer

Financial Audit

Question 6

Auditor has to submit the audit report to:

Accepted Answer

Shareholders

Answer

Directors

Answer

Creditors

Answer

Government

Question 7

A company has bought patents. Which of the following methods is most suitable for providing depreciation on them?

Accepted Answer

SLM

Answer

WDV

Answer

Sum of year digits

Answer

Any of the above

Question 8

Cost audit of a company under Section 233 B can presently be conducted by

Accepted Answer

only a Cost Accountant in practice

Answer

company's auditor appointed under section 224

Answer

only a Chartered Accountant in practice

Answer

any Accountant

Question 9

If a company auditor does something inappropriate in his performance of duty which causes the financial loss to the company, he shall be held guilty

Accepted Answer

Civil negligence

Answer

Breach of duty

Answer

Criminal negligence

Answer

Financial irregularities