Auditing MCQs

Question 1

Who can check the minute book?

Accepted Answer

Shareholder - without any fee

Answer

Debentureholder - on payment of fee

Answer

any person - on payment of fee

Answer

None of the above

Question 2

The retiring auditor does not have a right to

Accepted Answer

speak as a member of the company

Answer

make written representations

Answer

get his representations circulated

Answer

be heard at the meeting

Question 3

The work of continuous auditor is

Accepted Answer

Similar

Answer

loose

Answer

medium

Answer

Sharp

Question 4

Which of the following affects audit effectiveness?

Accepted Answer

Both A and C

Answer

Risk of over reliance

Answer

Risk of incorrect rejection

Answer

Risk of incorrect acceptance

Question 5

The first annual general meeting of the company must be held

Accepted Answer

within 9 months from the date of closing of first financial year of the company

Answer

within 3 months from the date of closing of first financial year of the company

Answer

within 6 months from the date of closing of first financial year of the company

Answer

None of these

Question 6

According to Section 226(3) of the Companies Act, 1956, the following persons are disqualified for appointment as an auditor of a company:

Accepted Answer

All the above

Answer

A debtor of a company

Answer

An officer of a company

Answer

An insolvent

Question 7

Which of the following Auditing Assurance Standard deals with Audit Planning?

Accepted Answer

AAS8

Answer

AAS7

Answer

AAS9

Answer

AAS3

Question 8

Identify the odd one from the following

Accepted Answer

Routine clerk

Answer

Instruction card clerk

Answer

Disciplinary officer

Answer

Inspector

Question 9

When a transaction has not been recorded in the books of account either wholly or partially such errors are called . . . . . . . .

Accepted Answer

errors of omission

Answer

errors of commission

Answer

compensating error

Answer

error of principle