Auditing MCQs

Question 1

In case of a company, which of the following is not correctly matched?

Accepted Answer

Internal audit ⇔ Obligatory

Answer

Statutory audit ⇔ Mandatory

Answer

Continuous audit ⇔ Optional

Answer

Management audit ⇔ Voluntary

Question 2

Home use of office laptop is

Accepted Answer

Embezzlement of property

Answer

Embezzlement of labor

Answer

Embezzlement of goods

Answer

Embezzlement of cash

Question 3

Working papers which contain a record of the audit work done, are the property of

Accepted Answer

the auditor

Answer

the company

Answer

the company and the auditor both

Answer

the Company Law Board

Question 4

Audit programme is prepared by:

Accepted Answer

The auditor and his audit assistants

Answer

The auditor

Answer

The client

Answer

The audit assistants

Question 5

Verification is the process by which an auditor satisfies himself about the accuracy of

Accepted Answer

assets and liabilities

Answer

cash sales and credit sales

Answer

wages and salaries

Answer

commission and discounts

Question 6

For Tata Company Ltd., auditing is-

Accepted Answer

necessity

Answer

luxury

Answer

symbol of prestige

Answer

necessity and luxury both

Question 7

Purchase of machinery is a . . . . . . . .

Accepted Answer

capital expenditure

Answer

revenue receipt

Answer

capital receipt

Answer

revenue expenditure

Question 8

Inspection report/receiving report supports entries in:

Accepted Answer

Purchase book and sales return book

Answer

Sales book and sales return book

Answer

Cash book and purchase book

Answer

Sales book and purchase return book

Question 9

In order to vouch bought ledger, the auditor obtain confirmations from creditors. The principal reason for the auditor to examine suppliers statements at balance sheet date is to obtain evidence that:

Accepted Answer

There are no unrecorded liabilities

Answer

The supplier exist

Answer

Recorded purchases actually occurred

Answer

To link creditors with cash book entries