Auditing MCQs

Question 1

The subject matter of audit is given in the following section of the companies act

Accepted Answer

227

Answer

224

Answer

225

Answer

226

Question 2

A vacancy cause by the resignation of auditor is filled by

Accepted Answer

General Meeting of Shareholders

Answer

Board of Directors

Answer

Central Government

Answer

Managing Director of the Company

Question 3

Which of the following is true about explanatory notes?

Accepted Answer

These are given to adhere to requirements of section 211

Answer

These are given by the directors of the company

Answer

These are given by auditors of the company in auditor's report

Answer

All of the above

Question 4

A file containing the rules for conducting the organization under audit is called

Accepted Answer

Permanent file

Answer

Current file

Answer

Routine file

Answer

Completion file

Question 5

Which of the following statements is not true with regard to teeming and lading?

Accepted Answer

If same individual maintains cash receipts and cash payments teeming and lading is likely to exist

Answer

It results in the deliberate misappropriation of cash receipts

Answer

It is associated with cash receipts

Answer

To conceal the shortage, the defraud, usually, tries to keep bank and book amounts in daily agreement so that a bank reconciliation will not detect the irregularity

Question 6

Analytical procedures are least likely to be use in the audit of:

Accepted Answer

Cash balance

Answer

Investments

Answer

Bills receivables

Answer

Debtors

Question 7

Verification of voucher is called

Accepted Answer

Vouching

Answer

Routine check

Answer

Auditing

Answer

None of these

Question 8

Which of the following is called back-bone of auditing?

Accepted Answer

Vouching

Answer

Routine checking

Answer

Internal check

Answer

Accounting

Question 9

Which of the following is not a revenue expense?

Accepted Answer

Cost of accessories of motor vehicles spent at the time of purchase

Answer

Cost of raising a loan

Answer

Expenses incurred for laying of sewers on land purchased

Answer

Insurance premium paid at the time of registration of the ship