Auditing MCQs

Question 1

In comparison to the independent auditor, an internal auditor is more likely to be concerned with:

Accepted Answer

Internal control system

Answer

Cost accounting system

Answer

Legal compliance

Answer

Accounting system

Question 2

Match the following. List-I List-II a. Statutory Audit 1. Commerce graduate having proficiency in Accounting b. Secretarial Audit 2. Practicing Company Secretary c. Cost Audit 3. Practicing Chartered Accountant d. Internal Audit 4. Practicing Cost & Works (or Management) Accountant

Accepted Answer

a-3, b-2, c-4, d-1

Answer

a-2, b-3, c-4, d-1

Answer

a-1, b-4, c-2, d-3

Answer

a-4, b-3, c-2, d-1

Question 3

Management Audit means

Accepted Answer

Systematic appraisal of management's objectives and work

Answer

Audit on behalf of management

Answer

Audit of management accounting

Answer

All of the above

Question 4

Which of the following institutions has to conduct compulsory audit?

Accepted Answer

All of the above

Answer

Co-operative societies

Answer

Life Insurance Company

Answer

Trust

Question 5

Which of the following is a part of verification of assets?

Accepted Answer

Both the above

Answer

Physical verification of existence of assets

Answer

Verification of values of assets

Answer

None of the above

Question 6

Errors and frauds already committed can be discovered under the system of . . . . . . . .

Accepted Answer

internal audit, internal check, internal control

Answer

external check

Answer

statutory audit

Answer

interim audit

Question 7

Goods sold on the basis of 'sales or return' should:

Accepted Answer

Be included in the stock

Answer

Not be included in the stock

Answer

Not be checked by auditor

Answer

None of the above

Question 8

Limitation of auditing is-

Accepted Answer

all the above

Answer

that it does not reveal complete picture of business

Answer

that it does not guarantee accuracy of accounts

Answer

that auditor may by biased

Question 9

Audit of banks is an example of:

Accepted Answer

All of the above

Answer

Statutory audit

Answer

Balance sheet audit

Answer

Concurrent audit