Auditing MCQs

Question 1

Routine checking reduces the

Accepted Answer

work of an auditor

Answer

liability of an auditor

Answer

both above

Answer

none of the above

Question 2

Direct confirmation procedure can be applied to:

Accepted Answer

Debtors and creditors both

Answer

Debtors only

Answer

Creditors only

Answer

None of the above

Question 3

Which is not the objective of Auditing?

Accepted Answer

Recording of original entries

Answer

Verification of financial statements

Answer

Detection of errors

Answer

Detection of frauds

Question 4

Depreciation does not arise form . . . . . . . .

Accepted Answer

Remarket expectation

Answer

Effluxion of time

Answer

Use

Answer

Obsolescence through technology be market changes

Question 5

A company auditor can be removed before expiry of his term by:

Accepted Answer

Shareholders

Answer

Board of directors

Answer

Central government

Answer

State government

Question 6

Who among the following can be appointed as special auditor by the Central Government?

Accepted Answer

Both A and B

Answer

The statutory auditor

Answer

Chartered accountant in practice

Answer

Any chartered accounted who is not in practice

Question 7

Which of the following factors would least likely affect the quantity and content of an auditor's working papers?

Accepted Answer

The content of management representation letter

Answer

The assessed level of control risk

Answer

The possibility of peer review

Answer

The nature of auditor's report

Question 8

The judgment that "An Auditor is not a Valuer" was given in

Accepted Answer

Kingston Cotton Mills Cash

Answer

Mekson and Robins Cash

Answer

Union Bank of India Cash

Answer

London & General Bank Cash

Question 9

Which of the following is NOT a method of collecting Audit Evidence?

Accepted Answer

Reporting

Answer

Inspection

Answer

Observation

Answer

Enquiry