Auditing MCQs

Question 1

Vouching is:

Accepted Answer

checking of entries

Answer

checking of assets

Answer

valuation of assets

Answer

none of these

Question 2

The educational qualification for an internal auditor of a joint stock company is

Accepted Answer

It is not necessary to be educated according to the companies act

Answer

Must be a chartered accountant

Answer

Must be a chartered accountant or caste accountant

Answer

Any other professional qualification

Question 3

To test whether sales have been recorded, the auditor should draw a sample from a file of:

Accepted Answer

Sales invoices

Answer

Purchase orders

Answer

Sales orders

Answer

Bill of loading

Question 4

The work of an auditor is:

Accepted Answer

Answer

To record the books of account

Answer

To compile various accounts books

Answer

Review the accounts

Answer

Interpret to draw a conclusion from an account

Question 5

A Voucher is a . . . . . . . .

Accepted Answer

document for support of an entry made in books of accounts

Answer

invoice received from suppliers

Answer

receipt issued to a customer for cash

Answer

dispatch Receipt

Question 6

An arrangement of staff duties whereby no one person is allowed to record every aspect of a transaction is called

Accepted Answer

Internal Check

Answer

Internal Administration

Answer

Internal Audit

Answer

Internal Management

Question 7

Which of the following statement is/are correct? (1) Internal check is a part of internal audit (2) Internal check in related to arrangement of duties among employees Select the correct answer using the option given below

Accepted Answer

Only 2

Answer

Only 1

Answer

Both 1 and 2

Answer

Neither 1 nor 2

Question 8

This kind of audit is conducted generally between two annual audit . . . . . . . .

Accepted Answer

Interim Audit

Answer

Internal Audit

Answer

Final Audit

Answer

Continuous Audit

Question 9

When accounting work is distributed among the staff members in such a way that the work done by one person is independently and automatically checked by another person the system is called:

Accepted Answer

Internal check

Answer

Internal audit

Answer

Test checking

Answer

Continuous audit