Auditing MCQs

Question 1

The auditor should examine subsequent realization of revenue such as dividends, interest, commission, etc. to:

Accepted Answer

Identify cases of unrecorded revenue

Answer

Ensure proper disclosure in the balance sheet

Answer

Recomputed accrued income on the data of balance sheet

Answer

Any of these

Question 2

Latin word "audire" means

Accepted Answer

To hear

Answer

To adjust

Answer

To dare

Answer

To here

Question 3

Which of the following is related to internal checking?

Accepted Answer

The work of one person is automatically checked by other person

Answer

The accounting records are checked by internal people

Answer

Assets verification is done internally

Answer

The work of each person is checked internally

Question 4

Audit working papers is an assets of:

Accepted Answer

Auditor

Answer

A client

Answer

Both A and B

Answer

Company Law Board

Question 5

Management audit otherwise called as . . . . . . . .

Accepted Answer

Efficiency Audit

Answer

Final Audit

Answer

Cost Audit

Answer

Cash Audit

Question 6

Which of the following statements is NOT correct regarding the duties of an auditor?

Accepted Answer

Physical verification of fixed assets is primarily the responsibility of the auditor

Answer

Ownership of fixed assets should be verified by examining the title deed by the auditor

Answer

Auditor should ascertain that the assets are in the possession of the client

Answer

The auditor should satisfy himself that the assets have been valued in the financial statements according to the accounting principles

Question 7

Internal check is done for

Accepted Answer

Prevention of frauds

Answer

Helping audit in depth

Answer

Detection of frauds

Answer

None of these

Question 8

Proper segregation of duties reduces the opportunities in which a person would both:

Accepted Answer

Perpetuate errors and frauds and conceals them

Answer

Establish controls and executes them

Answer

Records cash receipts and cash payments

Answer

Record the transaction in journal and ledger

Question 9

'Goods sent on approval basis' have been recorded as 'Credit sales'. This is an example of:

Accepted Answer

Error of principle

Answer

Error of commission

Answer

Error of omission

Answer

Error of duplication